In September 2024, nearly 10,000 victims of crypto phishing scams lost an alarming $46 million, according to ScamSniffer’s monthly phishing report. This rising trend highlights how cybercriminals are increasingly targeting cryptocurrency users.
Among the reported losses, one victim lost a staggering $32 million due to a forged permit signature, while another lost $1 million by simply copying a contaminated transfer address. These cases contribute to a larger problem, with total losses from phishing attacks in Q3 2024 reaching $127 million.
On average, around 11,000 victims fall prey to these scams each month, with two major incidents alone accounting for $87 million in losses.
Shocking, right? Heres how it all unfolded.
How Victims Are Targetted
Most phishing scams come from fake accounts on X (formerly Twitter) and malicious ads on Google. Cybercriminals trick victims into clicking on phishing links that look like legitimate platforms. Once users engage, their wallets can be compromised, or they may accidentally sign transactions that lead to the loss of their assets.
Stay Alert – Always!
Given this situation, it’s vital for users to be cautious when handling crypto transactions to avoid phishing and other threats. Users should never copy wallet addresses from previous transactions, as this can result in significant losses.
Always double-check the authenticity of addresses and links before signing any transaction or sharing wallet details.
Implementing anti-phishing measures is key to protecting your crypto assets. Users can improve their safety by using expert domain and address blocklists to filter out phishing sites from their browsers. Additionally, showing phishing signatures can provide an extra layer of protection.
Do Your Due Diligence
Security-aware users should thoroughly check every transaction, especially when dealing with unknown sites or addresses. Being vigilant is crucial to preventing phishing scams from harming your assets.
What to Do if You Fall Victim
If funds are lost through a phishing scam, recovery firms like MistTrack and CF Investigators can help retrieve stolen assets. However, prompt action is needed to increase the chances of recovering lost funds.
The threat of crypto phishing is real. Act now to safeguard your investments.
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This week has seen especially tumultuous events in the crypto space as various high-profile hacks have brought to the core grave flaws in both decentralized finance (DeFi) platforms and centralized exchanges. Below is an elaborative breakdown of notable incidents which resulted in the loss of over $50 million in just a week.
ShezmuTech – $4.9 Million Lost (September 21, 2024)
In what could be termed a remarkable breach for a budding DeFi project, ShezmuTech was sent reeling after it lost $4.9 million worth of ShezUSD tokens this week because of a contract vulnerability.
This particular exploit revolved around a vault that accepted collateral that could be minted by just anybody thereby giving malicious individuals like the attacker scope to borrow as many Shez tokens were needed without question.
Investigations into the attack revealed that liquidity restrictions prevented the hacker from exchanging the entire sum, leaving approximately $700,000 untouched.
BingX – $43 Million Stolen (September 20, 2024)
BingX, a centralized crypto exchange, based in Singapore, has reported an attack on its hot wallet from which $43 million was taken away. BingX’s technical team detected abnormal network activity around 4:00 AM that led to the immediate cessation of the withdrawal services.
According to PeckShield, a security firm and on-chain analysis show that more than 360 different altcoins were among the stolen assets before they were immediately swapped for Ethereum (ETH) and Binance Coin (BNB).
In spite of the attack’s seriousness, BingX reassured its users that most of their funds were stored in cold wallets to reduce overall damage. The exchange has promised to compensate customers while collaborating with security forces.
Banana Gun – Lost $1.9 Million (September 19, 2024)
Banana Gun, an online trading bot that is highly preferred by many, found itself in a loophole. The hackers were able to gain access to several user wallets associated with Banana Gun; this led to the theft of 563 ETH equalling $1. 4 million.
The Banana Gun team has been working to examine the breach, and the said platform has its Telegram bot is shutdown for the meantime. To date, 36 victims are known, and it is still unclear whether Banana Gun itself was hacked.
DeltaPrime – $5.98 Million Drained (September 16, 2024)
The other DeFi platform running on the Arbitrum network, DeltaPrime was breached earlier this week due to a leaked private key. An attacker was able to steal $5.98 million from DeltaPrime. The private key in question allowed the hacker to access all of the users’ funds that were kept at DeltaPrime’s Blue protocol.
Since then, DeltaPrime has admitted the event publicly and is now collaborating with security companies to track down what’s been taken.
In a week alone, over $50 million was taken away, emphasizing the need for stringent security measures and live oversight more than ever. The crypto world will be following attentively how investigations proceed as platforms such as BingX and ShezmuTech try to restore confidence among users while retrieving what has been lost.
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BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.
This week’s roundup highlights Argentina’s efforts to protect cryptocurrency scam victims, Bancolombia’s integration of the Solana and Arbitrum networks, along with other key stories.
Bancolombia’s Wenia Expands with Solana and Arbitrum Integration
Bancolombia’s crypto platform, Wenia, has expanded its offerings by integrating the Solana and Arbitrum networks, allowing users to transfer Ethereum (ETH) via Arbitrum. This update aims to enhance user experience with lower transaction fees and faster processing times.
The inclusion of Solana and Arbitrum positions Wenia as a competitive force in the region, particularly with Arbitrum’s scalability advantages over Ethereum. Wenia noted that this move aligns the platform with a global trend favoring more efficient blockchain networks.
“We have an invitation you’re going to love! Arbitrum and Solana networks are now available on Wenia App, and our crypto specialist Rafael Santamaría will tell you everything in a takeover this Friday, September 13, on our Telegram channel. Don’t miss it!” the platform announced via its X account.
Read more: Crypto vs. Banking: Which Is a Smarter Choice?
Since its launch, Wenia has offered a variety of digital assets, including Bitcoin, Ethereum, USDC, MATIC, and the COPW stablecoin. The platform also allows users to view detailed reports on the reserves backing the COPW stablecoin through its Reserve Test feature.
Earlier this year, Wenia introduced Chainlink’s Proof-of-Reserve (PoR) services to enhance transparency in its holdings.
“On-chain Proof of Reserve data is a critical component for digital asset adoption and serves as a springboard toward increasing consumer confidence in the use of stablecoins and other tokenized assets. We chose Chainlink for its industry-leading platform,” said Pablo Arboleda, CEO of Wenia.
Enegix Global Taps Natural Gas for New Crypto Mining Data Center in Brazil
Enegix Global has announced plans to use isolated natural gas as the energy source for its upcoming cryptocurrency mining data center in Brazil. Set to launch this November, the facility will initially have a 25-megawatt (MW) capacity, with plans to expand to 80 MW.
The isolated natural gas, found in areas with limited infrastructure, offers a cleaner energy alternative for mining operations, particularly in regions rich in gas reserves. This move aligns with Brazil’s growing reputation for both cryptocurrency adoption and renewable energy innovation.
“In addition to being considered one of the largest cryptocurrency adoption markets in the world, Brazil has ideal conditions to attract the digital mining industry as well. With clean energy sources, such as isolated natural gas and hydroelectric power plants, the country favors the promotion of sustainability in the sector and at the same time presents favorable conditions for operating costs and electricity generation,” Enegix CEO Yerbolsyn Sarsenov stated.
Read more: Is Crypto Mining Profitable in 2024?
The project aims to support the mining of Bitcoin and altcoins while enhancing Enegix’s power management capabilities by over 30%.
Latam Countries Rank Among Top 20 With Highest Crypto Adoption
According to the latest report from blockchain analytics firm Chainalysis, Brazil, Venezuela, Mexico, and Argentina are among the top 20 countries globally with the highest cryptocurrency adoption rates. These Latin American nations join others like India, Nigeria, and the United States in leading the world in crypto usage and transfers.
Chainalysis’ global adoption index highlights the role of Bitcoin spot exchange-traded funds (ETFs) in driving BTC activity in North America and Western Europe. In contrast, stablecoins have had a more significant impact in regions such as Africa and Latin America.
“Between Q4 2023 and Q1 2024, the total value of global crypto activity increased substantially, reaching higher levels than 2021 during the cryptocurrency bull market. This year, cryptocurrency activity increased in countries at all income levels, with a pullback in high-income countries from early 2024,” the report noted.
Read more: Top 9 Crypto Friendly Countries For Digital Assets Investors
Global Crypto Activity. Source: Chainalysis
In Latin America, Brazil, Venezuela, Mexico, and Argentina are leading the charge. The report also notes a significant increase in global cryptocurrency activity between Q4 2023 and Q1 2024, surpassing the levels seen during the 2021 bull market. Cryptocurrency usage grew across all income levels, although high-income countries saw a slight decline in early 2024.
Fundación Blockchain Argentina to Offer Legal Support to Cryptocurrency Scam Victims
Fundación Blockchain Argentina has launched a new initiative aimed at protecting cryptocurrency users by offering free legal advice to victims of scams. Led by Dr. Sabrina Scavone, the program aims to provide guidance to individuals who have fallen prey to cryptocurrency-related fraud. As investments in digital assets, such as Bitcoin, continue to rise, so too have incidents of scams, creating concern within the crypto community.
The service focuses on offering specialized legal advice to those who have suffered financial losses from Ponzi schemes, fraudulent investments, or phishing attacks. The Foundation’s move follows a significant increase in such crimes, with reports indicating millions of dollars lost to hacks and scams. The service will provide victims with a thorough analysis of their legal options and clear steps for pursuing their cases.
Guido Zatloukal, president of Fundación Blockchain Argentina, highlighted that this initiative reflects the organization’s commitment to the safety and well-being of the country’s crypto community.
Read more: 15 Most Common Crypto Scams To Look Out For
Sabrina Scavone also stressed the importance of creating a more secure and transparent cryptocurrency ecosystem, noting that legal tools can be crucial for those affected by such crimes. With the rise of fraud, Fundación Blockchain Argentina strengthens its role in promoting blockchain education and development, now extending its efforts to include legal support.
On September 6, 2024, Venezuelan authorities, led by the Bolivarian National Armed Forces (FANB) and the Public Prosecutor’s Office, seized 35 Bitcoin mining machines in the state of Guárico. The operation, sanctioned by the 3rd Control Court of San Juan de los Morros, also resulted in the confiscation of 30 extractors, several industrial fans, and two vehicles. The raid occurred due to the lack of necessary permits for operating the mining farm.
In Venezuela, cryptocurrency mining is heavily regulated, requiring authorization from the National Superintendence of Cryptoassets (Sunacrip). However, since Sunacrip was suspended in 2023 amid a corruption scandal involving state oil company PDVSA, the crypto industry has been left without a clear regulatory framework.
This regulatory void has created challenges for miners. Many argue that they lack the guidance to operate legally, resulting in interventions like the one in Guárico. High energy consumption from Bitcoin mining, particularly from ASIC machines, has been a key issue, exacerbating Venezuela’s ongoing energy crisis. Frequent blackouts have prompted the government to disconnect mining farms from the National Electric System (SEN), aiming to stabilize power for citizens.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
President Nicolás Maduro recently stated that cryptocurrencies would become a priority on his political agenda, but details on restoring Sunacrip or clarifying regulations remain vague. Until then, the uncertainty surrounding Bitcoin mining in Venezuela continues, with miners left exposed to legal action and sanctions. Similar crackdowns have been reported in Paraguay, where protecting the electricity grid is also cited as the primary reason for such interventions.
As the Latam crypto scene grows, these stories highlight the region’s increasing influence in the global market. Stay tuned for more updates and insights in next week’s roundup.
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Technology tamfitronics Polymarket vs BET: How crypto prediction markets differ in handling betting outcomesLiam ‘Akiba’ Wright ·5 hours ago· 5 min read
Polymarket relies on decentralization and community-driven governance, contrasting with BET’s structured resolution process and financial incentives.
5 min read
Updated: Aug. 29, 2024 at 1:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Polymarket and BET are two crypto prediction markets gaining significant attention. Each leverages blockchain technology to offer unique features and user experiences. Polymarket has accrued over $750 million in bets on the US election this year, while the newcomer BET has acquired around $22 million since its launch this month.
Technology tamfitronics How do Polymarket and BET work?
Polymarket operates on the Ethereum blockchain and utilizes Polygon as a Layer-2 scaling solution to enhance scalability and reduce transaction costs. This setup allows Polymarket to efficiently handle a high volume of trades without congesting the Ethereum network or incurring high gas fees.
The platform features mostly binary outcome markets, where users can bet on “Yes” or “No” outcomes for various events through a continuous double auction model. Alternatively, markets can be made for multiple outcomes, such as betting on which terms will be used during a political speech. This model ensures dynamic price discovery, with prices representing the probability of an event occurring.
Notably, Polymarket does not require users to hold a native platform token, and it supports self-custodial wallets, enhancing user security and control over funds. The platform also incentivizes liquidity and participation through various reward mechanisms, including liquidity provider rewards and market-specific incentives.
On the other hand, BET is a Solana-based prediction market platform launched by Drift Protocol. It capitalizes on Solana’s high transaction throughput and low fees, making it an attractive choice for decentralized applications. BET allows users to engage in event-based predictions by purchasing YES or NO shares on the outcomes of real-world events. The platform also offers structured bets, allowing users to implement complex trading strategies.
Technology tamfitronics Differentiating asset collateral and betting mechanisms
Polymarket’s auction system allows for dynamic price discovery by representing the probability of an event occurring. For example, if “Yes” shares for an event are trading at $0.72, it indicates a 72% probability of that outcome. Users can trade their positions anytime before market resolution, enhancing flexibility and liquidity. Polymarket requires users to deposit USDC into their wallets, and the platform does not necessitate holding a native token, simplifying the user experience.
In contrast, BET supports over 30 cryptocurrencies as collateral, including USDC and SOL, providing users with significant flexibility. BET also integrates yield generation through Drift’s borrow/lend platform, enabling users to earn interest on their collateral while waiting for event outcomes. This feature, combined with structured bets that allow users to implement complex trading strategies, sets BET apart in the prediction market landscape.
Polymarket focuses on simplicity and user accessibility by utilizing USDC as its primary currency, eliminating the need for a native token. This approach reduces barriers to entry and enhances user security through self-custodial wallets. Polymarket incentivizes liquidity and participation with various reward mechanisms, including liquidity provider rewards and market-specific incentives, fostering a healthy trading environment.
Conversely, BET offers a more complex financial ecosystem with multiple collateral options and yield-generation capabilities. The platform’s FUEL rewards program further incentivizes user engagement by distributing tokens based on trading volume, which can be redeemed within the Drift and Solana ecosystem. BET’s financial structure and high transaction throughput on Solana provide a fast and efficient trading experience, appealing to users seeking flexibility and additional financial incentives.
Polymarket and BET cater to different user needs. Polymarket emphasizes simplicity and decentralized resolution, while BET offers flexibility and yield opportunities through its diverse collateral options and integration with Drift’s platform.
Technology tamfitronics Resolution tools for prediction markets
Polymarket and BET employ distinct resolution mechanisms to determine the outcomes of their prediction markets, reflecting their differing approaches to decentralization and governance.
Polymarket utilizes UMA’s Optimistic Oracle, a decentralized and trustless system, to resolve market outcomes. This mechanism integrates real-world data into smart contracts, which is essential for determining the results of various wagers. When a market is created, a resolution request is automatically sent to the Optimistic Oracle.
Proposers within the UMA system submit answers to this request backed by a bond. If the proposed answer is uncontested, it is accepted after a challenge period, typically two hours. In case of disputes, the system resets the question and issues a new request to ensure trivial disagreements do not impede resolution. Persistent disputes escalate to UMA’s Data Verification Mechanism (DVM), where UMA token holders vote on the correct outcome, usually resolving within 48 to 72 hours. This process illustrates Polymarket’s commitment to a community-driven and transparent resolution system.
BET resolves its markets through a structured process managed by a security council and an elected multisig under realms governance. At the designated resolution time, the security council updates the oracle with a binary outcome (0 or 1), representing the event’s result. Following this update, an expiry date is set for the market, after which it enters a “reduce only” mode, preventing new positions from being opened or existing ones from being increased.
The market is settled based on the oracle’s outcome, and users can then settle their positions at the determined settlement price. In a shortfall, where the market lacks sufficient funds to cover all positions, the shortfall is socialized into the settlement price, potentially reducing the payout even if the resolution was set to 1. This structured approach ensures fairness and transparency, with mechanisms to handle potential financial shortfalls.
Thus, Polymarket emphasizes decentralization and community involvement through UMA’s oracle, while BET focuses on structured governance and security council oversight to ensure accurate and fair market outcomes.
Technology tamfitronics User incentives and reward systems
Polymarket incentivizes user engagement through various reward mechanisms designed to enhance liquidity and participation. One of its primary incentives is the liquidity provider rewards program, which encourages users to place resting limit orders near the market midpoint. This program aims to create a balanced and liquid marketplace by rewarding users weekly for maintaining healthy market conditions.
Polymarket occasionally runs public competitions based on profit and loss or trading volume to further stimulate user activity. These incentives, combined with the platform’s use of USDC and self-custodial wallets, make Polymarket an attractive option for users seeking a straightforward and secure trading experience.
BET offers a different set of incentives through its FUEL rewards program. This program rewards users with FUEL tokens based on their trading volume, which can be redeemed within the Drift and Solana ecosystem for various benefits. BET also provides yield-generation opportunities, allowing users to earn interest on their collateral while waiting for event outcomes. This feature and the platform’s support for over 30 cryptocurrencies as collateral offer users significant flexibility and potential financial benefits. BET’s structured bets feature further enhances its appeal by enabling users to implement complex trading strategies, such as taking long positions on prediction markets while shorting Bitcoin.
Technology tamfitronics Summary of Polymarket vs BET
Polymarket leverages Polygon to enhance scalability and reduce transaction costs. This setup allows the platform to handle a high volume of trades without congesting the Ethereum network or incurring prohibitive gas fees. Polymarket uses UMA’s Optimistic Oracle for market resolution with a commitment to decentralization and community-driven governance. This oracle system ensures fair and transparent market outcomes by integrating real-world data into smart contracts and allowing for community voting in case of disputes.
BET capitalizes on Solana’s high throughput and low fees, making it a fast and efficient platform for decentralized applications. Its resolution process involves a security council, an elected multisig under realms governance, which updates the oracle with the event’s outcome. This structured approach ensures accurate and fair market resolutions, with mechanisms in place to handle potential financial shortfalls.
Both platforms offer diverse market opportunities, with Polymarket supporting various topics, including politics, sports, and entertainment. BET initially focuses on political events but plans to expand into sports and cultural events, broadening its market reach. These differences highlight the platforms’ unique strengths: Polymarket emphasizes simplicity, security, and decentralized resolution, while BET offers flexibility, yield opportunities, and a structured governance model. Users can choose between these platforms based on their preferences for market diversity, financial incentives, and technical infrastructure.
