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The SRA revealed that the scammers falsely claim to have personal data and threaten to release damaging videos. The emails use the address ”joyti.henchie@attwaters.co” and the name ”Patrice Joyce.” Meanwhile, the Compound Finance website is compromised, and is redirecting users to a phishing site, while the Cambodian marketplace Huione Guarantee has been linked to major crypto scams. CoinStats hack wallets were seen moving close to $1 million in ETH, but Railgun successfully blocked Inferno Drainer’s attempt to launder stolen crypto.

New Bitcoin Scam Resurfaces

The Solicitors Regulation Authority (SRA) in the United Kingdom has issued a warning about a new scam involving emails from fake lawyers demanding Bitcoin (BTC) payments. According to an update on its website, an email from the address “joyti.henchie@attwaters.co” claims to have copied all of the recipient’s personal data and threatens to release damaging videos unless a Bitcoin payment is made. 

The scam email includes a link to a Bitcoin wallet, which may also contain malware. It falsely uses the name “Patrice Joyce” and claims to be associated with the legitimate firms Attwaters Solicitors and Attwaters Jameson Hill Solicitors. 

However, the SRA confirmed that it does not authorize or regulate a lawyer named Patrice Joyce. According to the SRA, any business or transaction through the email domain “@attwaters.co” is not associated with the genuine firms or people it regulates. The genuine firm’s email domains end in “@attwaters.co.uk” or “@attwatersjamesonhill.co.uk.”

Manjot Kaur Henchie, known as Joyti, is the bearer of the name used in the email address, and is a genuine solicitor working at the legitimate firm Attwaters Jameson Hill Solicitors. Both the firm and Henchie have confirmed they have no connection to the scam email at all. 

The alert by the UK regulator is another case that proves just how important it is to be vigilant against email scams and making sure any demands for payment, particularly in cryptocurrencies like BTC, are thoroughly investigated before any action is taken. 

A very similar email extortion scam emerged in 2019, and it targeted website owners using Google’s AdSense program. Scammers demanded Bitcoin in exchange for supposedly protecting against an attack that would allegedly result in AdSense account suspension. In 2020, New Zealand law enforcement warned people about a crypto scam where fraudsters blackmail victims by claiming to possess information about their online pornographic activities. The scammers then demand a Bitcoin ransom and threaten to expose the victims’ alleged porn use if they don’t pay up.

Users Urged to Avoid Compound Finance Site

Crypto security investigator ZachXBT has issued a warning to users to avoid the Compound Finance website because it appears to have been compromised. On July 11, ZachXBT advised the community on Telegram to stay away from the site, as it redirects to a newly registered phishing site.

A member of the Compound Finance team confirmed the breach and urged users not to interact with the website to avoid the potential loss of personal data and funds. Michael Lewellen, security adviser at the Compound Finance DAO, also alerted users that the URL has been compromised and is now hosting a phishing site. Despite this breach, Lewellen assured users that the protocol and smart contract funds are still secure.

This is not Compound Finance’s first security issue as it suffered a breach in 2023 as well. The DeFi protocol’s official X account was hacked, and attackers used it to promote a phishing website. 

The compromised account advertised free crypto tokens and directed users to a fake site. Luckily, the incident was quickly flagged as a scam by cybersecurity blogger Officer’s Notes and blockchain security platform Scam Sniffer. Compound Labs managed to recover the account within four hours and removed the spam messages.

Phishing attacks have become a big problem in the crypto space. On July 3, CertiK reported that crypto security incidents resulted in $1.19 billion in losses in the first half of 2024, with almost $498 million attributed to phishing attacks alone. 

Cambodian Marketplace Linked to Major Crypto Scams

Huione Guarantee, an online marketplace that is operated by the Cambodian conglomerate Huione Group, has been implicated in facilitating online scams across Southeast Asia. According to a recent Elliptic Research report, the platform was involved in transactions of more than $11 billion, and a large portion of this is linked to money laundering and cyber scams. 

Tom Robinson, co-founder and chief scientist at Elliptic, explained that the transparency of the blockchain allowed them to quantify these crypto transactions, making it possible for them to track trans and block transactions in ways not possible with other payment methods.

Huione Guarantee operates mainly in Chinese and uses thousands of instant messaging app channels, and each is managed by separate merchants. These merchants provide services essential to cyber scams, including selling personal data, money laundering, and developing software and websites for scams. 

Ads on Huione Guarantee for electric shock shackles and electric batons (Source: Elliptic)

Shockingly, the platform also offers tools and equipment for imprisoning and torturing workers in scam compounds. While the platform uses bank transfers and payment apps, it mainly relies on Tether (USDT), which is easier to track than traditional fiat currency. Elliptic’s investigation led to hundreds of crypto addresses being labeled as associated with Huione Guarantee and its merchants. 

Robinson pointed out that businesses can use blockchain analytics to avoid transacting and interacting with entities like Huione Guarantee. The now labeled addresses in Elliptic’s tools enable transaction and wallet screening to prevent further laundering of illicit funds. 

Elliptic’s 2024 report also revealed the growing use of artificial intelligence in illicit activities, including state-sponsored cyberattacks and deepfake scams. Schemes involving deepfake videos of well known people like Elon Musk and former Singaporean Prime Minister Lee Hsien Loong are increasing. Discussions on dark web forums also reveal that criminals are using AI to reverse-engineer crypto wallet seed phrases and bypass authentication systems.

CoinStats Hack Wallets Moving ETH

Meanwhile, wallets linked to the CoinStats exploiter were seen moving almost $1 million in Ether (ETH) into the crypto mixing protocol Tornado Cash. Blockchain security firm CertiK reported that two wallets associated with the June CoinStats exploit transferred 311 ETH, which is valued at $959,000, to Tornado Cash. One wallet moved 211 Ether, while the other sent 100 ETH to the crypto mixer. 

The CoinStats security breach happened on June 22, and affected 1,590 crypto wallets. In response to the breach, CoinStats suspended user activity and isolated the security incident.

The company announced that none of the connected wallets and exchanges were impacted and advised the affected users to move their funds using their exported private keys. By June 30, CoinStats was working on its transaction database and migrating to a different platform to improve its efficiency and reliability. It also implemented system upgrades and audits. Functionality on the CoinStats platform was fully restored by July 3.

On June 26, CoinStats CEO Narek Gevorgyan revealed that the hack involved their AWS infrastructure, and evidence pointed to a socially engineered attack where an employee was tricked into downloading malicious software. Community members reported millions in losses, and one wallet allegedly lost almost $9 million in MKR.

Railgun Blocks Inferno Drainer’s Laundering Attempt

Luckily, not all crypto criminals are this lucky when it comes to laundering their stolen funds. Crypto privacy protocol Railgun’s built-in tool to filter out bad actors successfully thwarted Inferno Drainer’s recent attempt to launder stolen crypto. 

On July 10, MistTrack reported that an attempt to launder more than 174 ETH was blocked by Railgun, forcing the stolen ETH back to Inferno’s original wallet address. Alan Scott Jr, a Railgun contributor, explained that the Ethereum-based privacy protocol rejected Inferno’s malicious attempt through its automated Private Proofs of Innocence (Private POI) system. The system makes sure that tokens can only return to the attacker’s address if deemed unwelcome in Railgun.

Railgun was launched in January of 2021, and uses zero-knowledge (ZK) cryptography to protect wallet balances, transaction history, and transaction details. The Private POI system was introduced in January 2023, and uses cryptographic assurance to prevent tokens from known undesirable transactions or actors from entering the Railgun smart contract. 

Users have to create a ZK-proof that their funds are not part of a pre-set list of transactions and wallets. Scott stated that the Private POI system detects and blocks transactions linked to nefarious actors, leaving the sender with no option but to withdraw the tokens back to the original address.

Inferno Drainer has stolen over $180 million in crypto from more than 189,000 victims since its inception in August of 2023, according to Dune Analytics. Interestingly, in April, Railgun denied allegations that the North Korean hacking consortium Lazarus Group used the protocol. Despite being labeled a ”prime alternative to Tornado Cash” by Elliptic, Ethereum co-founder Vitalik Buterin defended Railgun.

Ripple CEO Brad Garlinghouse has intensified his criticism of SEC Chair Gary Gensler, likening him to a modern-day Luddite. Meanwhile, Ripple has earned a spot among the top fintech companies of the year, recognized by CNBC and Statista. Concurrently, the XRP Ledger community is on high alert following the emergence of a counterfeit xSPECTAR token, prompting urgent warnings from both community leaders and the legitimate xSPECTAR team. 

Ripple Recognized Among Top Fintech Companies of 2024 by CNBC and Statista

San Francisco-based blockchain enterprise Ripple has been recognized as one of the top fintech companies of the year by global business news outlet CNBC and German statistics portal Statista. This recognition highlights Ripple’s significant contributions to the digital asset landscape and underscores its influence within the fintech industry.

Ripple has secured its place on the list of leading digital asset companies, sharing the spotlight with prominent names such as cryptocurrency exchange Coinbase, NFT marketplace OpenSea, blockchain intelligence firm Chainalysis, and hardware wallet producer Ledger, among others. Known primarily for its association with the XRP cryptocurrency, Ripple expressed its gratitude for the accolade. ”We are honored by the recent recognition,” the company stated, adding, ”Thank you to our employees, customers, and supporters on the journey with us!”

The jointly compiled list includes 250 fintech companies categorized across eight distinct sectors: “Payments,” “Digital Assets,” “Financial Planning,” “Neobanking,” “Business Process Solutions,” “Wealth Technology,” “Alternate Finance,” and “Banking Solutions.” The ”Payments” category leads the list, comprising 24% of the total companies recognized. 

The United States leads in the number of fintech companies featured on the list, with 161 entries, showcasing its robust fintech ecosystem. The United Kingdom follows as a distant second, while Singapore, Germany, and Canada also rank among the top countries contributing to the fintech sector’s growth and innovation.

The selection process for these companies was based on a blend of general and specific key performance indicators (KPIs). These metrics included factors such as company growth, innovation, impact on the industry, and overall performance. Ripple’s inclusion is a strong indication of its strategic initiatives, technological advancements, and the value it provides to its users and the broader fintech community.

A notable trend in the 2024 fintech landscape is the rapid proliferation of artificial intelligence (AI), particularly generative AI. AI has emerged as a pivotal theme, influencing various aspects of financial technology. From enhancing customer experiences to optimizing operational efficiencies, AI technologies are reshaping the way fintech companies operate and deliver value.

Ripple’s achievements in 2024 reflect its commitment to driving innovation within the blockchain and digital asset sectors. The company’s technology enables faster, more cost-effective cross-border payments, addressing a critical need in the global financial ecosystem. Ripple’s network, RippleNet, continues to expand, providing financial institutions with a reliable and efficient platform for international transactions.

In addition to its technological advancements, Ripple has also been actively involved in regulatory and compliance efforts. The company has engaged with regulators worldwide to promote a clear and consistent framework for digital assets. This proactive approach aims to foster a more secure and stable environment for the adoption of blockchain technology and cryptocurrencies.

The recognition by CNBC and Statista is not just a milestone for Ripple but also a reflection of the broader fintech industry’s evolution. As digital assets gain mainstream acceptance and blockchain technology continues to mature, companies like Ripple are at the forefront of this transformative journey.

Looking ahead, Ripple aims to build on its momentum by exploring new use cases for its technology and expanding its partnerships. The company’s vision is to create a more inclusive and interconnected global financial system, leveraging the power of blockchain to facilitate seamless and secure transactions.

Ripple CEO Brad Garlinghouse Criticizes SEC Chair Gary Gensler, Calling Him ”The Luddite of His Time”

Ripple CEO Brad Garlinghouse recently launched a scathing critique against U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, labeling him ”the Luddite of his time.” This sharp rebuke comes amid the growing tension between crypto advocates and regulatory authorities in the United States.

Garlinghouse’s comparison of Gensler to the Luddites, a 19th-century anti-industrialization movement, demonstrates his view that Gensler is obstructing technological progress. The Luddites, who originated in Yorkshire and Lancashire, vehemently opposed the rise of machinery that they believed unfairly reduced wages and threatened their livelihoods. Their opposition was so fierce that it often resulted in the destruction of machinery and aggressive protests against industrialization.

The term ”Luddite” has since evolved to describe individuals or groups resistant to technological advancements. In modern discourse, ”Neo-Luddism” refers to a movement of people who oppose certain contemporary technologies. Garlinghouse’s labeling of Gensler as a ”Neo-Luddite” shows his frustration with what he perceives as the SEC Chair’s attempts to stifle innovation within the cryptocurrency sector.

Despite Gensler’s background, which includes teaching about blockchain technology at the Massachusetts Institute of Technology (MIT), his tenure as SEC Chair has been marked by aggressive regulatory actions against the crypto industry. These actions have sparked widespread criticism from industry leaders who argue that such policies hinder innovation and drive technological advancements abroad.

Garlinghouse has been particularly vocal about the potential consequences of Gensler’s approach. He has repeatedly warned that the United States risks falling behind other countries in the rapidly evolving cryptocurrency landscape. This concern is not unfounded, as countries like Singapore, Switzerland, and Malta have adopted more favorable regulatory frameworks, attracting significant investment and talent to their burgeoning crypto sectors.

Last month, Garlinghouse intensified his criticism of Gensler following comments made by the SEC Chair about the potential legal repercussions for crypto executives. Gensler suggested that many in the industry could end up behind bars or facing extradition. In response, Garlinghouse pointedly highlighted the SEC’s failure to prevent the collapse of FTX, a high-profile cryptocurrency exchange that filed for bankruptcy, causing significant turmoil in the market.

The FTX debacle has been a sore point for many in the industry, who argue that the SEC’s regulatory focus should be on preventing such catastrophic failures rather than imposing broad restrictions that hamper legitimate innovation. Garlinghouse’s critique suggests that he believes the SEC’s current trajectory under Gensler’s leadership is misguided and detrimental to the long-term health of the U.S. crypto industry.

Garlinghouse’s latest remarks add to a growing chorus of voices within the crypto community calling for a more balanced and forward-thinking regulatory approach. Many industry leaders advocate for clear, consistent, and supportive regulations that protect consumers while fostering innovation. They argue that such an approach would enable the U.S. to maintain its leadership position in the global fintech and blockchain sectors.

The ongoing conflict between crypto advocates and regulators like Gensler highlights a fundamental debate about the future of financial innovation and regulation. As the crypto industry continues to mature, the need for a regulatory framework that balances security and innovation becomes increasingly critical. Garlinghouse’s public criticism shines the spotlight on  the urgency of this issue and the high stakes involved.

XRP Ledger Community Warned of Fake xSPECTAR Token Scam

Meanwhile, the XRP Ledger (XRPL) community has been alerted to a significant scam involving a counterfeit xSPECTAR token. Scammers have created a fake version of the xSPECTAR token, cleverly replicating the currency hex code to mimic the legitimate one, thus deceiving potential investors and users. This fraudulent activity has prompted urgent warnings from community leaders and the legitimate xSPECTAR team.

The legitimate xSPECTAR issuer’s address, identified as rh5jzTCdMRCVjQ7LT6zucjezC47KATkuvv, is clearly marked on XRPL explorer ”xrpscan” to help users distinguish it from the fake token. This distinction is crucial as the fake token mirrors the legitimate token’s hex code, making it difficult for unsuspecting users to differentiate between the two.

Daniel ”No” Keller, a prominent XRPL community member, took to X (formerly Twitter) to raise awareness about this issue. In his tweet, Keller stated: ”Heads up xSPECTAR holders. Some scammers issued another xSPECTAR token with the same currency hex as the real one. The real issuer is rh5jzTCdMRCVjQ7LT6zucjezC47KATkuvv, and the account is labeled on xrpscan.” He further warned about a fake automated market maker (AMM) pool associated with the counterfeit token, advising users to be vigilant.

xSPECTAR operates on the XRP Ledger for its token and marketplace, with nodes and oracles on both XRPL and Flare Networks. This dual-network operation demonstrates the importance of maintaining the integrity and security of their token. Given that the XRP Ledger’s distributed exchange is one of the main platforms for accessing the xSPECTAR Token, alongside centralized exchanges, the warning serves as a critical alert to the entire community.

In response to the fraudulent activity, xSPECTAR has issued a formal warning through its official X handle. The statement emphasized the importance of caution and thorough verification: ”We’ve been made aware of a new token named xSPECTAR circulating recently. Please note that this token is not associated with us. We advise everyone to exercise caution and verify any related information thoroughly. Stay safe.”

The fake xSPECTAR token and the associated fake AMM pool represent a sophisticated attempt to exploit the reputation and trust that xSPECTAR has built within the crypto community. Scams of this nature can cause significant financial losses and undermine confidence in digital assets. Therefore, awareness and proactive measures are vital in preventing such fraud.

Users are encouraged to utilize tools like xrpscan to verify the authenticity of tokens and issuers. By cross-referencing the legitimate issuer’s address and staying informed through trusted community channels, users can protect themselves from falling victim to scams.