Blockchain
New Phishing Scam in China Targets Crypto Users Through Bogus Skype App
In a recent development, cybersecurity experts at SlowMist have unveiled a sophisticated phishing scheme in China, designed to exploit cryptocurrency users through a counterfeit Skype application. This scam, leveraging the Chinese prohibition on international apps, capitalizes on the widespread search for these restricted applications on third-party platforms.
The report from SlowMist, a prominent firm in crypto security analytics, highlights the strategy of the scammers, who exploit the demand for popular social media apps like Telegram, WhatsApp, and Skype. These apps, often sought after by users in mainland China, become the focal point for these fraudsters to introduce cloned versions laden with harmful software, aiming specifically at crypto wallets.
The deception was brought to light when a user reported a substantial financial loss due to the scam. SlowMist’s investigation revealed the fake Skype app, masquerading under version 8.87.0.403, a stark contrast to the official latest version, 8.107.0.215. Further digging uncovered the phishing back-end domain “bn-download3.com,” which initially posed as part of the Binance exchange in late 2022, before transforming to mimic a Skype back-end in May 2023.
A deep dive into the app’s code exposed a compromised version of the popular Android network framework, “okhttp3.” Unlike the standard framework that manages traffic requests, this altered okhttp3 was engineered to intercept and alter specific data. The framework specifically searches for image-like address format strings, commonly used in crypto transactions. Once identified, these are swapped with fraudulent addresses controlled by the hackers.
Moreover, the malicious app demands access to internal files and images. Given that such permissions are standard for many social media applications, users are often unsuspecting of foul play. Once granted access, the counterfeit Skype app begins transmitting a wide array of personal data, including images, device details, and contact information, to the scammer’s servers. It actively monitors for cryptocurrency-related data, such as addresses in the format used by Tron and Ether, and modifies them to reroute assets to the scammers.
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This alarming incident serves as a stark reminder of the escalating sophistication of cyber threats, especially in the realm of cryptocurrency, and underscores the need for heightened vigilance among users of third-party application platforms.
In a landmark development for the cryptocurrency sector, the United States Government Accountability Office (GAO) has put forth crucial recommendations to the Securities and Exchange Commission (SEC) preceding the latter’s unprecedented approval of spot Bitcoin exchange-traded funds (ETFs) on January 10th.
The Role of the GAO in Shaping Crypto Regulation
The GAO, an independent and nonpartisan audit institution within the legislative branch of the U.S. government, is known for providing auditing, evaluative, and investigative services to the U.S. Congress. Its recent involvement with the SEC highlights the growing significance of the digital asset market and the need for a robust regulatory framework.
GAO’s Findings and Recommendations
Upon assessing the SEC’s capabilities in handling the burgeoning crypto market, the GAO discovered that while the SEC has 116 employees focusing primarily on crypto assets, it lacks an updated workforce planning strategy. The current strategy, dated for the fiscal years 2019–2022, is deemed insufficient to meet the SEC’s future needs in overseeing and formulating policies for crypto assets.
To address these gaps, the GAO suggested three key strategies:
- New Workforce Planning Strategy: The SEC’s Chief Human Capital Officer should develop a new workforce planning strategy that aligns with the agency’s strategic and performance plans for 2022–2026.
- Documentation of Policies and Procedures: It is recommended that the SEC’s FinHub director document the policies and procedures that support the hub’s internal controls.
- Development of Performance Goals: The GAO advises that the FinHub director should establish performance goals and measures that are clear, quantifiable, and focused.
Additionally, the GAO has introduced a live status section to track the SEC’s response to these recommendations, ensuring accountability and transparency in the implementation process.
Historic Approval of Spot Bitcoin ETFs
In a historic judgment, the SEC approved 11 spot Bitcoin ETF applications on January 10th. This decision marked a significant shift in the regulatory landscape, as the SEC, led by Chief Gary Gensler, had previously rejected such applications for nearly a decade. The internal document from the SEC revealed a close vote, with three votes in favor and two against, highlighting the contentious nature of this issue.
Peter Schiff’s Critique and Warning
Notably, Peter Schiff, a well-known critic of Bitcoin, has expressed skepticism about the approval. He suggests that the SEC Chief was cornered into approving the spot Bitcoin ETFs and warns of potential stringent crypto regulations in the future. According to Schiff, these regulations might substantially increase the cost of Bitcoin transactions, potentially undermining its use case and leading to a significant price decline.
Conclusion
The GAO’s recommendations to the SEC represent a pivotal step in shaping the regulatory framework for the digital asset market in the United States. As the crypto industry continues to evolve, the SEC’s response to these recommendations and its approach to regulating the sector will be closely watched by investors and market participants alike.
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) recently approved 11 spot Bitcoin exchange-traded funds (ETFs). This approval comes after a decade-long struggle between regulators and the digital asset industry, marking a watershed moment for the acceptance of digital assets as mainstream investments. Among the approved ETFs are BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF.
Unprecedented Inflows:
On the first day of trading, these ETFs saw impressive activity, with $4.6 billion worth of shares changing hands across all the products, according to LSEG data. Bitwise, a crypto asset manager, reported that its spot Bitcoin ETF alone attracted $240 million, making it the most popular among the newly introduced products. Grayscale, BlackRock, and Fidelity dominated total trading activity, according to the LSEG data.
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Bitwise’s Chief Investment Officer, Matt Hougan, expressed optimism about the future, stating, “We think that this will become a market measured in the tens of billions of dollars.” This surge in interest highlights a growing acceptance of Bitcoin and other cryptocurrencies among traditional investors.
Competition and Fee Wars:
The SEC’s approval has sparked intense competition among issuers to gain market share. Franklin Templeton, reacting swiftly, slashed the fee for its Bitcoin ETF to 0.19 percent, the lowest in the market. Additionally, the company waived fees entirely on the product’s first $10 billion in assets under management until August. Valkyrie, another player in the space, reduced its fees to 0.25 percent after its ETF started trading. This fee war is indicative of the fierce competition among ETF issuers to attract investor capital.
Grayscale’s Transition to ETF:
Grayscale, a prominent player in the cryptocurrency investment space, received approval to convert its existing Bitcoin trust into an ETF. This move instantly made it the world’s largest Bitcoin ETF, managing over $28.6 billion in assets. Despite this success, the ETF experienced outflows of $95 million on the first day of trading. The ability of Grayscale to navigate this transition will be closely watched, as it sets a precedent for other trusts considering a similar shift.
Regulatory Caution:
While the SEC’s approval is a significant step forward, it is important to note that SEC Chair Gary Gensler emphasized that the decision should not be interpreted as an endorsement of Bitcoin. Gensler referred to Bitcoin as a “speculative, volatile asset,” highlighting ongoing concerns about investor protection. The regulatory nod indicates a willingness to explore the potential of digital assets, but caution is warranted as the market continues to evolve.
Conclusion:
The approval of 11 spot Bitcoin ETFs by the SEC marks a turning point for the cryptocurrency industry. The influx of billions of dollars within the first day of trading demonstrates a growing acceptance of digital assets among traditional investors. The fee wars among ETF issuers and Grayscale’s transition into an ETF further highlight the competitive dynamics and challenges in the market. As the cryptocurrency market matures, ongoing regulatory scrutiny and investor sentiment will play crucial roles in shaping the future of these innovative financial products.
In a recent exclusive interview with Cointelegraph, Tether CEO Paolo Ardoino has voiced his belief that the future of the crypto industry lies in providing real-world use cases without necessarily relying on tokens or blockchain technology. Ardoino argues that the next breakthrough in the industry should focus on the fundamental value proposition offered by cryptography, emphasizing peer-to-peer transactions and privacy protections.
“Crypto doesn’t need a blockchain. It doesn’t need a token,” Ardoino stated, challenging the conventional reliance on these technologies. He proposes that the industry should shift its focus towards practical applications that offer tangible benefits to users.
Ardoino suggests that potential killer apps in the crypto space could take the form of everyday solutions, such as a booking system or a competitor to ride-sharing services like Uber. The key, according to him, is to leverage the core strengths of cryptography in facilitating secure and private peer-to-peer transactions.
One of the primary concerns raised by Ardoino is the centralization and regulatory scrutiny associated with token issuance. He argues that introducing a token creates a centralized point of failure, increasing the likelihood of regulatory challenges. Ardoino notes that many projects that issued tokens are currently under the scrutiny of regulatory bodies like the U.S. Securities and Exchange Commission (SEC).
“To be decentralized, this system wouldn’t need blockchain technology, which is slow and requires a global shared state,” Ardoino explained. He cited BitTorrent as an example of a decentralized system that achieved success without relying on blockchain technology.
The Tether CEO contends that departing from the conventional blockchain and token model could lead to more innovation and adoption in the crypto industry. By focusing on the core principles of cryptography, projects can potentially avoid regulatory challenges and offer solutions that resonate with a broader audience.
Also read:Bitcoin-Centric Firms Surge in Pre-market as BTC Soars Past $45K
As the crypto industry continues to evolve, Ardoino’s perspective challenges the status quo, encouraging a shift towards real-world applications that prioritize user experience and practicality over traditional blockchain and token-centric approaches.
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