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Mt. Gox Moves Billions in Bitcoin to Unknown Wallet Address

In a significant development in the cryptocurrency world, Mt. Gox, the infamous exchange that collapsed in 2014, has transferred billions of dollars’ worth of Bitcoin to an unknown wallet address. The move has sparked speculation and concern among investors and analysts alike.

The transferred Bitcoin, amounting to billions in value, was previously held in the custody of Mt. Gox, which was once one of the largest cryptocurrency exchanges globally before its collapse due to a major hacking incident.

The sudden movement of such a substantial amount of Bitcoin raises questions about the intentions behind the transfer and the potential impact on the cryptocurrency market. Analysts suggest that the transfer could be part of the ongoing rehabilitation process of Mt. Gox, which has been underway for several years.

Investors are advised to monitor the situation closely as developments unfold. The movement of funds from dormant addresses, especially from entities with historical significance like Mt. Gox, can influence market dynamics and investor sentiment.

Mt. Gox’s rehabilitation process has been a prolonged and complex legal journey, involving efforts to compensate victims of the exchange’s hacking incident. The recent transfer underscores the complexities involved in managing and redistributing assets in such cases.

While the specifics of Mt. Gox’s intentions remain unclear, the event highlights the need for transparency and accountability in the cryptocurrency ecosystem. Regulatory oversight and investor protection measures are crucial as the market continues to evolve.

In conclusion, Mt. Gox’s transfer of billions in Bitcoin to an unknown wallet address marks a significant event in the cryptocurrency landscape. It underscores ongoing challenges and opportunities within the digital asset space, emphasizing the importance of vigilance and informed decision-making for stakeholders.

SOURCE: Mt. Gox moves $2.7B in Bitcoin to new wallet address

Deutsche Telekom Partnering with Subsquid to Boost Blockchain Data Efficiency

Deutsche Telekom is partnering with Subsquid, a decentralized data platform, to enhance blockchain data security and efficiency. This move aligns with Deutsche Telekom’s strategic vision of embracing decentralization and follows their recent announcement to venture into Bitcoin mining at BTC Prague.

T-Mobile Deutsche Telekom MMS has joined forces with Subsquid to run dedicated worker nodes within Subsquid’s decentralized “data lake.” According to a press release shared with Cointelegraph, this collaboration aims to improve the security and efficiency of blockchain data retrieval and delivery. Worker nodes in the Subsquid network process data queries, retrieving requested information for data consumers.

Alexander Ebeling, co-founder of Web3 Unit Deutsche Telekom MMS, stated, “For Deutsche Telekom, this collaboration aligns with our strategic vision of embracing decentralization and supporting the development of new, decentralized business models.”

Marcel Fohrmann, co-founder of Subsquid, emphasized that this partnership would help “strengthen and secure permissionless data access” across Web3. The collaboration follows Deutsche Telekom’s recent role as a validator for the Ethereum layer-2 scaling platform Polygon, becoming one of the network’s 100 staking and validation providers.

Dmitry Zhelezov, co-founder of Subsquid, discussed data handling, explaining that each piece of data is “cryptographically validated” to ensure authenticity. “Once [data] has been added to the Subsquid Network, every piece of data is replicated across dozens of nodes across the network, so even if a node goes offline all the data remains available for consumers.”

Security remains a top priority for Deutsche Telekom. Ebeling noted, “Security remains a paramount concern, as enterprise-scale systems are prime targets for cyber threats.” He added that Deutsche Telekom implements rigorous security audits and maintains an on-call duty team available 24/7 to guarantee the uptime of their blockchain infrastructure.

Addressing the challenges in data security, Zhelezov mentioned the need for efficient data partitioning and enterprise-grade security measures in a decentralized space.

In related news, Dirk Röder, head of Web3 infrastructure and solutions at Deutsche Telekom, revealed at the BTC Prague event that the firm had been running a Bitcoin node since 2023 and hinted at their upcoming engagement in “digital monetary photosynthesis.” When asked if this meant Bitcoin mining, Röder confirmed, “we will.”

SOURCE: Deutsche Telekom joins Subsquid decentralized network

Plagiarism Perplexes Perplexity AI as Tech Giant Rivalry Intensifies

Perplexity AI, an artificial intelligence startup aiming to disrupt the search engine market, has come under scrutiny for its content practices. The company, which has garnered significant investment from tech luminaries including Jeff Bezos, seeks to rival giants like Google by offering an AI-driven search chatbot. However, its methods have raised ethical concerns within the media industry.

Allegations of Content Misuse

Perplexity AI’s main product is a search chatbot that uses AI to provide concise answers to user queries, functioning similarly to a blend of Wikipedia and ChatGPT. This tool has been accused of summarizing and distributing content from various media sources without proper attribution. Forbes has alleged that Perplexity published a summary of one of its investigative articles without citing the original source, a claim that Perplexity CEO Aravind Srinivas has contested. Srinivas insists that the company’s technology does not train on other entities’ content but rather aggregates information generated by other AI systems.

Further complicating the matter, a WIRED investigation found that Perplexity’s chatbot was accessing and scraping content from websites in violation of the Robots Exclusion Protocol, which dictates how web crawlers should interact with sites. This investigation revealed that Perplexity’s bot created content that closely mirrored original articles without proper permissions or acknowledgments, leading to accusations of plagiarism.

Incidents of Fabricated Quotes

The Associated Press reported another troubling aspect of Perplexity’s technology: the generation of fabricated quotes attributed to real people. One case involved a former town official from Martha’s Vineyard who was falsely quoted on his views about marijuana legalization. This incident, among others, highlights the challenges AI systems face in maintaining accuracy and reliability.

Srinivas acknowledged these issues, attributing them to what is known as “hallucinations” in AI parlance, where models generate believable but incorrect information. He noted that the feature responsible for these errors was intended for essay composition and grammar correction and was more prone to inaccuracies.

Industry Reaction and Legal Concerns

The reaction from the media industry has been critical. Randall Lane, Chief Content Officer of Forbes Media, has accused Perplexity of undermining journalism by treating it as a commodity and failing to respect the hard work of reporters. He emphasized the need for AI companies to respect proprietary content and the added value of professional journalism.

Legal experts have suggested that Perplexity might face legal challenges, including claims of copyright infringement and deceptive practices. James Grimmelmann, a professor of digital and information law at Cornell University, explained that while summarizing factual information is not automatically a copyright violation, the extent and context of the duplication are crucial factors. The practice of bypassing paywalls and summarizing content before publishers can benefit commercially could lead to misappropriation claims.

Pam Samuelson, a law professor at UC Berkeley, pointed out that the practices might not meet the substantial similarity threshold needed for copyright infringement. However, Bhamati Viswanathan from New England Law argued that a new legal framework might be necessary to address the broader implications of AI on intellectual property and creative economies.

In Defense of Perplexity AI

It seems that team Perplexity AI is seeking answers despite being perplexed by the plagiarism accusations.

On June 28, 2024, Amazon’s spokesperson Samantha Mayowa stated that the company is examining details from a WIRED investigation suggesting Perplexity AI scraped content from restricted websites. Why is Amazon investigating this allegations? Well, ignoring the fact that Jeff Bezos is one of the prominent investors behind team Perplexity, Perplexity AI operates using Amazon Web Services (AWS). Hence, the spokesperson emphasized that AWS customers must comply with their terms of service, which prohibit abusive and illegal activities. Apparently, Amazon regularly investigates reports of potential abuse.

Perplexity spokesperson Sara Platnick asserted that the company has confirmed its services do not violate AWS terms of service in their web crawling practices.

Future Prospects for Perplexity AI

Despite these controversies, Perplexity AI continues to grow, reporting over 85 million web visits in May. Srinivas is hopeful about forming revenue-sharing partnerships with news publishers, where a portion of advertising revenue would be shared when content from these publishers is used. This approach aims to create a mutually beneficial relationship between Perplexity and content creators.

As discussions about AI’s impact on content creation and journalism continue, Perplexity AI’s experience underscores the complex balance between technological innovation and ethical responsibility. The company’s ability to address these challenges and build trust with both users and content creators will be crucial for its future success.

Sources

Associated Press: https://apnews.com/article/perplexity-ai-search-engine-forbes-f307cb607f0db871b05f843a3f744340
Wired: https://www.wired.com/story/perplexity-plagiarized-our-story-about-how-perplexity-is-a-bullshit-machine/
The Washington Post: https://www.washingtonpost.com/business/2024/06/28/amazon-perplexity-online-content-scraping-investigation/0b5fa96e-3593-11ef-872a-1d22f44a0d95_story.html

Bitcoin ETF Inflows Reaching Monthly High as Bitcoin Hovers Near $63K

The spot Bitcoin exchange-traded fund (ETF) market in the United States experienced a notable daily inflow of $129.45 million, marking the highest in a month and the fifth consecutive day of inflows. This influx comes as Bitcoin’s price holds near the $63,000 mark, struggling to break past the key resistance level of $62,000.

Approved by the Securities and Exchange Commission on January 10, spot Bitcoin ETFs started trading on January 11. Major ETF issuers initially saw substantial inflows and trading volume, with the exception of Grayscale’s GBTC, which has experienced zero flows or significant outflows from the start.

Data from the crypto research platform SoSo Value indicates that Fidelity’s ETF recorded the highest inflow on July 1, with 1,030 BTC worth $65 million, followed by the Bitwise ETF, with 650 BTC worth $41 million. ARK Invest saw inflows of 205 BTC worth $13 million. However, BlackRock’s IBIT and Grayscale’s GBTC, the two largest spot Bitcoin ETFs by net asset value, saw zero flows on the same day.

The recent inflow of $129.45 million on July 1 is the highest since June 7. This positive trend in BTC ETF inflows coincides with Bitcoin reclaiming the $63,000 level after struggling for nearly three weeks. 

“The July 1 inflows marked the fifth consecutive day of inflows for spot BTC ETFs after nearly seven days of outflows in the last week of June,” noted an analyst from SoSo Value.

June was a bearish month for Bitcoin ETFs and the BTC price, with ETFs recording nine days of outflows compared to ten days of inflows. The value of outflows significantly exceeded the value of inflows during this period.

The bullish trend for spot BTC ETFs coincided with a surge in BTC prices on Monday, reaching a new weekly high of $63,778. However, the price dipped below $63,000 earlier today and is currently trading at $62,558. Despite recovering from a weekly low below $60,000, BTC remains over 15% down from its all-time high of $73,750.

With July historically proving to be a bullish month for Bitcoin and the upcoming approval of spot Ether ETFs, the crypto market could witness another rally in the coming weeks, similar to the surge seen with the approval of spot BTC ETFs.

SOURCE: Bitcoin ETF inflows highest in a month as Bitcoin hovers near $63K

Curve Finance Adopting crvUSD for Fee Distribution

Curve Finance is shifting its fee distribution mechanism from the 3cr token to its native stablecoin, crvUSD, to enhance the stablecoin’s utility and better integrate it into the Curve Finance ecosystem.

Curve Finance has announced a major change in its fee distribution process. The decentralized finance (DeFi) platform will now use its native stablecoin, crvUSD, instead of the 3cr token for fee distribution. This transition aims to improve crvUSD’s utility and further integrate it within the Curve Finance ecosystem.

According to a press release shared with Cointelegraph, this switch will create an “additional supply sink for the stablecoin,” potentially increasing the total value locked (TVL) in the platform. Uncollected fees are a significant factor in this “supply sink,” the release noted.

Michael Egorov, the founder of Curve Finance, highlighted the benefits of this transition for users: “The transition to crvUSD means that users will now obtain fees in a dollar-denominated stablecoin. This shift simplifies the process significantly, as crvUSD doesn’t have to be converted to anything else to be utilized in Curve Finance products.”

The new fee distribution mechanism is also expected to incentivize users to engage more with the Curve Finance ecosystem. Egorov elaborated, “Curve users can deposit crvUSD into the ecosystem using fees earned.” He added that the value of 3crv, while generally increasing, has a variable conversion rate, necessitating additional steps for users to convert 3crv into a more stable or usable form of currency.

Despite the anticipated benefits, there are some risks associated with the transition. Egorov acknowledged that while the 3crv token has been operational for over four years without issues, crvUSD is relatively new, having been in use for just one year. It has undergone multiple audits and has been deemed fit for deployment but is inherently less time-tested compared to 3crv.

Operational risks were also a concern during the “preparation phase” for on-chain votes required for the change. However, Egorov assured that these risks have been mitigated since all relevant votes have passed.

This strategic move by Curve Finance underscores its commitment to enhancing the utility of crvUSD and fostering a more integrated and user-friendly ecosystem.

SOURCE: Curve Finance adopts crvUSD for fee distribution

Cardano Nodes Undergoing Upgrade to Boost Security After DDoS Attack

Following a Distributed Denial of Service (DDoS) attack, Cardano blockchain developers are implementing a node upgrade to bolster security against similar future threats. This move comes after the network withstood an attempt on June 25 to manipulate transaction fees and steal staked ADA tokens, which ultimately failed due to prompt action by the developer community.

The attack commenced at block 10,487,530. According to Raul Antonio, CTO of Fluid Tokens, the attackers aimed to exploit a vulnerability related to the transaction fee mechanism. “They attempted to use the size of reference scripts, which doesn’t currently affect transaction fees, to reduce costs for high-value transactions,” Antonio explained. Despite their efforts, the blockchain’s security measures held firm.

Philip Disarro, founder and CEO of Anastasia Labs, shared insights on the attackers’ failed strategy. “The size of reference scripts doesn’t impact the transaction fee, but it does increase the workload for validators. This was their angle,” said Disarro. He revealed that the community quickly recovered the stolen ADA, thwarting the attackers’ plans. Disarro quipped about the unsuccessful attempt, “Thanks for the free money, moron. It’s ironic that their effort to harm the ecosystem ended up benefiting our open-source development.”

Following the attack, Intersect, a member-based organization within the Cardano ecosystem, acknowledged the incident. They praised the developers’ swift action preventing any serious damage to the network. “Although the network remained secure and operational, the load increased significantly, affecting some stake pool operators,” a representative from Intersect stated. They confirmed that a thoroughly tested solution will soon be available for stake pool operators to enhance their systems.

The developer community remains vigilant, continuing to improve the blockchain’s defenses. Disarro emphasized the importance of careful deployment: “Rushing to implement changes without adequate testing and independent audits can expose you to risks, much like the attacker experienced.” As the Cardano network moves past this incident, the focus remains on fortifying its infrastructure against potential future attacks.

Bitcoin Layer 2: Alex Lab’s Alleged Exploitation by Lazarus Group

Recent reports have surfaced linking Bitcoin’s Layer 2 technology to potential exploitation by the Lazarus Group, a notorious hacking collective associated with North Korea. The Alex Lab, a prominent player in the cryptocurrency space, allegedly became a target of this sophisticated cyber-attack.

Bitcoin’s Layer 2 solutions are designed to improve scalability and transaction speeds by processing transactions off the main blockchain. This technology has gained traction for its ability to enhance Bitcoin’s functionality and address network congestion issues.

However, concerns have emerged regarding security vulnerabilities within Layer 2 protocols, which the Lazarus Group purportedly exploited. The group’s tactics reportedly include phishing schemes and malware deployment aimed at accessing digital assets stored on Layer 2 platforms.

The implications of such attacks are significant for the cryptocurrency community, highlighting the ongoing challenges of securing decentralized financial systems against sophisticated cyber threats. Users and stakeholders are urged to remain vigilant and implement robust security measures to safeguard their investments.

Alex Lab, a key player in advancing Bitcoin’s technological infrastructure, now faces scrutiny over its security protocols and response mechanisms to mitigate potential breaches. The incident underscores the need for continuous innovation in cybersecurity to protect against evolving threats in the digital asset ecosystem.

As investigations into the alleged exploitation unfold, regulatory bodies and industry experts are likely to assess the broader implications for cryptocurrency adoption and regulatory frameworks. The outcome could influence future developments in cybersecurity practices and regulatory oversight within the cryptocurrency sector.

In conclusion, the reported exploitation of Bitcoin Layer 2 technology by the Lazarus Group underscores the critical importance of cybersecurity in safeguarding digital assets and maintaining trust in decentralized financial systems.

SOURCE: Alex Lab points to Lazarus Group after last month’s $4M exploit

Uphold Will Delist USDT and Five Stablecoins by July 1, Citing MiCA

Uphold, a leading cryptocurrency exchange, has announced it will cease support for six popular stablecoins by July 1 to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA). This move is part of a broader trend among major crypto exchanges to align their practices with new regulatory requirements.

The stablecoins affected by Uphold’s decision include Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini dollar (GUSD), Pax dollar (USDP), and TrueUSD (TUSD). Users holding these stablecoins must convert them to another cryptocurrency by June 28, after which the platform will automatically convert any remaining balances into USD Coin (USDC).

MiCA, which was passed into law in May 2023 and partially implemented in June 2023, imposes stricter regulatory requirements on fiat-backed stablecoins and e-money tokens. The regulations are set to come into full effect by the end of 2024, aiming to enhance consumer confidence in digital currencies.

“MiCA places additional and stricter regulatory requirements on fiat-backed stablecoins and e-money tokens that have crossed a predetermined adoption threshold,” Uphold explained in its notice to customers. These measures include a 1:1 reserve ratio for fiat-backed stablecoins and requirements for issuers to maintain asset reserves with a third party, separate from other assets.

From June 30, MiCA’s stablecoin regulations will be active in the European Economic Area. Crypto exchanges like Uphold, Binance, Kraken, and OKX have been updating their policies to comply. Binance, for instance, categorized its stablecoins into “regulated” and “unauthorized” groups, though it has yet to finalize which fall under each category. OKX delisted Tether in Europe earlier this year without citing MiCA, while Kraken is still reviewing its stance on USDT.

These changes come as the European Banking Authority takes charge of overseeing these tokens, shifting control from national authorities within the EU. This regulatory shift aims to ensure stablecoins are reliable for use as a store of value and for payments.

In summary, Uphold’s delisting of six stablecoins by July 1 marks a significant step in the ongoing adjustments within the crypto industry to meet the stringent MiCA regulations, ensuring stability and security in the digital currency market.

SOURCE: Uphold to delist USDT and 5 stablecoins by July 1, citing MiCA

Meme Sector Experiencing Sharp Sell-off as GameStop Losses Continue

Meme tokens are seeing a significant decline as GameStop’s losses extend to 60%. A Solana-based parody token dropped 25% in the last 24 hours, with other meme tokens following suit.

The controversial GameStop (GME) stock rally faced its second consecutive day of reversal on Monday, closing the U.S. trading session down 12% after a 40% drop on Friday. This downward trend has negatively impacted meme tokens that often mirror GameStop’s movements. GME ended Monday at $24.89, down 62% from a two-year high of $61 last Thursday.

Elsewhere, the Solana-based meme token GME, which parodies the company, slid 25%, reversing a more than 200% rally from the past week. Related tokens like Roaring Kitty (KITTY) and other cat-themed tokens, which previously moved alongside GME stock, lost an average of at least 10%, according to data tracked by CoinGecko.

Dog-themed tokens, including Dogecoin (DOGE), Shiba Inu (SHIB), and Floki (FLOKI), also experienced declines, with losses ranging from 4% to 10%. The stock had been volatile since late May, spurred by the return of retail trader and GME bull Keith Gill. Known by his aliases @TheRoaringKitty and “DeepF*ckingValue,” Gill was a pivotal figure in the stock’s short squeeze rally in 2021.

Last week, Gill showcased a $580 million position in GME equity and options holdings, boosting the stock’s prices and potentially setting him up for a billion-dollar exposure. However, gains were short-lived after GameStop announced plans to sell up to 75 million shares, just days after raising $933 million by selling 45 million shares. The company also reported a drop in quarterly sales, further dampening investor sentiment.

The impact on meme tokens was immediate and severe. “The drop in GME stock directly influences these meme tokens due to their correlation,” said a market analyst. “Investors should brace for more volatility as the situation unfolds.”

SOURCE: Meme Sector Sees Sharp Sell-off as GameStop Losses Extend to 60%

Elliptic Report Highlights Emerging AI-Driven Crypto Crime

Elliptic’s 2024 report uncovers the increasing use of AI in sophisticated crypto crimes, highlighting a new era of cyber threats from deepfake scams to state-sponsored cyberattacks.

The report reveals how advanced technologies are being exploited for a range of illicit activities. One alarming finding is an advertisement for an “unethical” GPT on the dark web, claiming, “AI has two faces, just like humans.”

The report also highlights the advertisement for WormGPT, which states, “Embrace the dark symphony of code, where rules cease to exist, and the only limit is your imagination. Together, we navigate the shadows of cyberspace, ready to conquer new frontiers. What’s your next move?”

Deepfake videos are a significant concern, with Elliptic revealing that doctored videos of prominent individuals are being used to promote fraudulent investment schemes. The report states, “Doctored videos – or ‘deepfakes’ – of notable individuals promoting investment scams have targeted the likenesses of Elon Musk, former Singaporean Prime Minister Lee Hsien Loong, and both the 7th and 8th Presidents of Taiwan, Tsai Ing-wen and Lai Ching-te.”

These deepfake scams are becoming increasingly convincing, making it difficult for individuals to distinguish between genuine and fraudulent content. The use of AI in these scams demonstrates the growing sophistication of cybercriminals and the potential for significant financial losses.

Elliptic’s report serves as a warning to the crypto community about the emerging threats posed by AI-driven crimes. The rise of AI technologies has opened new avenues for cybercriminals, and the report suggests that these threats are just beginning. As AI continues to evolve, so too will the tactics used by those seeking to exploit its capabilities for illicit purposes.

The findings emphasize the need for increased vigilance and advanced security measures to combat the growing threat of AI-driven crypto crimes. The report underscores the importance of staying informed about the latest developments in cyber threats and the need for robust defenses to protect against these emerging risks.

SOURCE: AI-driven crypto crime is only just beginning — Elliptic report