Category Archives: Cryptocurrencies

Energy use from US cryptomining firms is contributing to rising utility bills

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An investigation revealed that companies use enough energy to power Houston, and contribute to growing carbon emissions

The largest US cryptomining companies have the capacity to use as much electricity as nearly every home in Houston, Texas; energy use that is contributing to rising utility bills, according to an investigation by Democratic lawmakers.

Cryptomining is a highly energy intensive process involving the use of specialized computers running constantly to solve complex math problems in order to create new virtual coins.

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EU moves to rein in ‘wild west’ of crypto assets with new rules

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MiCA law contains measures to guard against market abuse and manipulation

The EU has moved to rein in the “wild west” of crypto assets by agreeing a groundbreaking set of rules for the sector.

Representatives from the European parliament and EU states thrashed out an agreement on Thursday that contains measures to guard against market abuse and manipulation, as well as requiring that crypto firms provide details of the environmental impact of their assets.

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North Korean hackers thought to be behind $100m cryptocurrency heist

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If confirmed, last week’s attack would be the eighth this year – involving $1bn in stolen funds – that could be confidently attributed to North Korea

North Korean hackers are thought to be behind last week’s theft of as much as $100m in cryptocurrency from a US company, as the regime steps up attempts to secure funding for its nuclear and ballistic missile programmes.

The assets were stolen on 23 June from Horizon Bridge, a service operated by the Harmony blockchain that allows assets to be transferred to other blockchains, three digital investigative firms have concluded.

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Trillion-dollar crypto collapse sparks flurry of US lawsuits – who’s to blame?

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Kim Kardashian and Floyd Mayweather among those being sued, but prosecuting fraud in the crypto arena is notoriously difficult

With investors worldwide looking at a collective $1.5tn in recent cryptocurrency losses, a blizzard of class-action lawsuits are being prepared. One big question is: who, if anyone, is to blame – and who could be held to account?

With inflation and interest rates rising, the best-known cryptocurrencies have been hit with heavy and continuing losses: Bitcoin has lost more than 50% of its value this year; Ethereum, its largest rival, is down 65%; and the total value of crypto assets has dropped to less than $1tn from its November 2021 peak of $3tn. US federal regulators say 46,000 people have reported losing $1bn in crypto to scams since January 2021.

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Jay-Z’s bitcoin school met with skepticism in his former housing project: ‘I don’t have money to be losing’

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The hip-hop mogul loves to rap about his roots in Brooklyn’s Marcy housing projects. But classes in cryptocurrency show the billionaire is out of touch, residents say

Marcy Houses, the 28-acre public housing development in Brooklyn’s Bedford-Stuyvesant neighborhood, is best-known as a pillar of rapper-turned-mogul Jay-Z’s New York persona. Built in 1949 as part of a push by the New York City Housing Authority to house the city’s low-income residents, Marcy had fallen into a state of dangerous disrepair by the 1970s when Jay-Z, whose real name is Shawn Carter, was growing up there.

“Where I’m from, Marcy son, ain’t nothing nice,” he raps in “Where I’m From”. “Marcy me, just the way I am always gonna be,” he declares in 2017’s Marcy Me.

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Bitcoin withdrawals temporarily suspended in volatile day for crypto market

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Value of assets dips below $1tn after Celsius Network halts withdrawals over ‘extreme’ conditions

The cryptocurrency market has endured another day of volatility as the Binance exchange temporarily suspended bitcoin withdrawals and the total value of the digital asset market dipped below $1tn (£820bn), after a cryptocurrency lender stopped customers from taking back their funds.

The cryptocurrency lending platform Celsius Network halted withdrawals because of “extreme market conditions”, prompting a sell-off.

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‘Complex and volatile’: cryptocurrencies should be regulated by financial watchdogs, say consumer advocates

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Treasury inquiry told ‘crypto is high-risk and unsophisticated investors are at high risk of losing significant funds’

Consumer groups have called for strong financial regulation of cryptocurrency markets and investments in Australia, saying crypto assets are “complex, volatile and high-risk products that can cause harm to Australian consumers.”

In a submission to the federal treasury’s consultation paper on cryptocurrency, consumer group Choice has urged the federal government to “strongly consider regulating all crypto assets under the existing financial product regulatory regime for better outcomes for consumers and the community”.

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FBI seeks arrest of man claiming to be North Korea ‘special delegate’

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Spaniard alleged to have conspired with cryptocurrency expert to help Pyongyang evade US sanctions

The FBI has issued an arrest warrant for a Spanish man who claims to be a “special delegate” working for the government of North Korea, accusing him of recruiting a cryptocurrency expert in an attempt to help Pyongyang circumvent US sanctions.

Alejandro Cao de Benós, a 47-year-old Spanish national who describes himself as Pyongyang’s special delegate for the committee for cultural relations with foreign countries, is alleged to have conspired with Virgil Griffith, a US cryptocurrency expert, to “illegally provide cryptocurrency and blockchain services to the Democratic People’s Republic of Korea (DPRK)”.

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Beanstalk cryptocurrency loses $182m of reserves in flash ‘attack’

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Raider gains voting rights over digital currency and uses them to transfer contents of treasury

The Beanstalk cryptocurrency has been stripped of reserves valued at more than $180m (£138m) in seconds, after an attacker used borrowed money to snap up enough voting rights to transfer the money away.

The lightning hostile takeover raises fresh questions about the unregulated nature of digital currencies and the lack of protections for investors.

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Hackers stole over $500m in cryptocurrency in record-making heist, Ronin says

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Ronin, blockchain project that powers the popular online game Axie Infinity, says unidentified hackers used stolen private keys

Blockchain project Ronin said on Tuesday that hackers stole cryptocurrency now worth almost $615m from its systems, in what would be one of the largest cryptocurrency heists on record.

The project said that unidentified hackers on 23 March stole 173,600 ether tokens and 25.5 million USD coin tokens. At current exchange rates, the stolen funds are worth $615m, but they were worth $540m at the time of the attack.

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Brother and sister charged with cryptocurrency fraud in New York

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John Barksdale faces up to 65 in prison in connection with Ormeus Coin as well as facing civil charges alongside JonAtina Barksdale

US authorities on Tuesday filed criminal charges against a cryptocurrency executive and civil charges against him and his sister, accusing them of defrauding retail investors out of millions of dollars with a digital token known as Ormeus Coin.

In papers filed in Manhattan federal court, the justice department said John Barksdale lied about the value and profitability of Ormeus Coin’s mining assets, including that the coin was backed by a $250m mining operation generating more than $5m of monthly revenue.

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‘Trojan horse’: Palau’s bid to become global crypto hub could turn it into scammers paradise, critics warn

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Experts say Palau should be wary of entering into a programme that could leave it open to exploitation and harm its image

Palau’s new digital residency programme could leave it open to cryptoscammers and corruption, critics have warned, arguing that not enough due diligence has been done on the scheme.

The programme allows foreigners to buy an e-residency card which in turn allows them to start companies and sign documents, among other things. Most importantly, when the relevant legislation is passed, it will allow them to trade in cryptocurrencies, useful for residents whose countries, like China, do not allow it.

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Can bitcoin be sustainable? Inside the Norwegian mine that also dries wood

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Kryptovault’s operation is part of a fightback against criticism of the famously energy-intensive industry

A line of large blue skips full of chopped wood sit at the back of a site belonging to Norway’s biggest bitcoin mining operation, a 5,000 sq metre warehouse on the outskirts of Hønefoss, a small town 40 miles west of Oslo.

Hot air is being pumped into the 12 skips through bendy corrugated pipes curling out from the warehouse. Despite the snow, it will take a few days for the logs to be dried out, after which a local lumberjack, grateful for the free service, will take them away for sale.

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US married couple arrested for allegedly conspiring to launder $4.5bn in bitcoin

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Husband and wife, a rapper on TikTok, are accused in the US’s biggest-ever cryptocurrency theft case

The US justice department has announced the unraveling of its biggest-ever cryptocurrency theft case, seizing a record-shattering $3.6bn in bitcoin in a saga that has captivated the internet.

US officials said on Tuesday the recovered sum was linked to the hack of Bitfinex, a virtual currency exchange whose systems were breached by hackers nearly six years ago.

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How do we solve bitcoin’s carbon problem?

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The cryptocurrency consumes more energy than Norway. As countries consider copying China’s ban, experts disagree on whether a greener version is possible

When bitcoin mining company Bit Digital started shipping its energy-intensive computers out of China in early 2021, eyebrows were raised. “A lot of people thought we were being overly paranoid,” says chief strategy officer Sam Tabar, who helped relocate all of the company’s machines to the US and Canada.

But the company’s paranoia paid off. China’s bitcoin mining ban last summer, driven partly by environmental concerns, sent the industry spinning into chaos. The announcement sparked a fire sale of the computers used to power bitcoin, with mining companies scrambling to ship more than 2m of the machines out of China. They arrived by the crateload in countries like the US, Russia and Kazakhstan.

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North Korean hackers stole $400m in digital assets last year, says report

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The regime has launched at least seven cyber-attacks on cryptocurrency platforms, say blockchain experts

North Korea has launched at least seven attacks on cryptocurrency platforms that extracted nearly $400m worth of digital assets last year, one of its most successful years on record, according to a new analysis.

“From 2020 to 2021, the number of North Korean-linked hacks jumped from four to seven, and the value extracted from these hacks grew by 40%,” said the report by blockchain experts Chainalysis, which was released on Thursday.

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How Australia’s far right uses cryptocurrencies to monetise hate online

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As cryptocurrencies become mainstream and frictionless, extremists are finding new ways to fundraise

There have never been more ways to ask for money on the internet. For rightwing extremists looking to monetise hate, that can be a big opportunity – and the earning potential of these digital assets hasn’t gone unnoticed in Australia.

Earlier this year, I traced funding networks associated with a sample of Australian channels that share rightwing extremist content on the chat app Telegram, and found links to at least 22 online funding tools. These included donation requests via wallet addresses for cryptocurrencies such as bitcoin, monero, ethereum and litecoin.

Ariel Bogle is a researcher and journalist with a focus on technology and extremism. She owns a small amount of ethereum.

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‘Blockchain Rock’: Gibraltar moves to become world’s first cryptocurrency hub

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Territory’s financial sector risks reputational damage and diplomatic sanctions if complex regulations of crypto hub fail

On the southern Mediterranean coast, nestled in the shadow of the Rock’s sheer limestone cliffs and its tangle of wild olive trees, the Gibraltar Stock Exchange (GSX) is quietly preparing for a corporate takeover that could have global consequences for the former naval garrison.

Less than half a mile away, next to the blue waters of Gibraltar’s mid-harbour marina, the peninsula’s regulators are reviewing a proposal that would prompt blockchain firm Valereum to buy the exchange in the new year – meaning the British overseas territory could soon host the world’s first integrated bourse, where conventional bonds can be traded alongside major cryptocurrencies such as bitcoin and dogecoin.

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The best of the long read in 2021

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Our 20 favourite pieces of the year

After growing up in a Zimbabwe convulsed by the legacy of colonialism, when I got to Oxford I realised how many British people still failed to see how empire had shaped lives like mine – as well as their own

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NFTs market hits $22bn as craze turns digital images into assets

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Critics of non-fungible tokens say they are symptomatic of unsustainable digital gold rush

The global market for non-fungible tokens hit $22bn (£16.5bn) this year as the craze for collections such as Bored Ape Yacht Club and Matrix avatars turned digital images into major investment assets.

NFTs have drawn from veteran investors similar warnings to those issued about cryptocurrencies: that they are symptomatic of an unsustainable, digital gold rush. NFTs confer ownership of a unique digital item – whether a piece of virtual art by Damien Hirst or a jacket to be worn in the metaverse – upon someone, even if that item can be easily copied. Ownership is recorded on a digital, decentralised ledger known as a blockchain.

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