Crypto compliance software tools are built to solve the main problem: chase cryptocurrency transactions, find origins of addresses. Source: https://wunderbit.co/en/blog/what-is-cryptocurrency-compliance-and-anti-money-laundering
Was This The 3rd Largest Hack In Crypto History? Data Shows $280 Million Drained From KuCoin
Newly aggregated data suggests that the hackers that recently compromised KuCoin’s hot wallets may have taken more than the estimated $150 million, as per the exchange’s report. Considering the updated numbers, the KuCoin hack would be the third-largest in history, with approximately $280 million stolen.
The KuCoin Hack: $280M Taken Instead Of $150M?
As CryptoPotato reported over the weekend, an unknown group of hackers exploited the hot wallets of the popular cryptocurrency exchange KuCoin. The platform quickly issued an official statement informing that the total amount stolen equaled $150 million worth of various digital assets.
Furthermore, KuCoin guaranteed that the exchange’s insurance fund will fully reimburse users.
However, the stolen amount could be significantly higher, according to the popular cryptocurrency researcher Larry Cermak. By examining wallets “very likely” associated with KuCoin, he estimated that the amount is actually $280 million, instead of $150 million.
He admitted that some of the tokens have been “frozen, forked, and blacklisted,” but the numbers he came up “don’t reflect that.” Consequently, Cermak questioned KuCoin’s ability to indeed cover the stolen funds from its insurance fund.
Cermak also offered a list of the coins “likely” to be recovered – Velo ($76 million), Tether ($22 million), Orion ($10 million), KardiaChain ($10 million), Ocean Protocol ($9 million), VIDT Datalink ($7 million), NOIA Network ($5 million), and Covesting ($600,000). This equals about 50% of all stolen funds.
Was This The Third-Largest Crypto Hack Ever?
If Cermak’s data is accurate, the KuCoin hack would be the third-largest to date in the cryptocurrency field.
The most significant one came in early January 2018. The victim was the Japanese digital asset exchange Coincheck.
After announcing that the platform has seized all NEM deposits, Coincheck later froze all NEM sales, purchases, and withdrawals. Later on, the exchange confirmed that perpetrators had swiped about $535 million worth of NEM. Interestingly, all stolen funds were grabbed again from the exchange’s hot wallets.
The second-largest hack occurred on maybe the most famous Bitcoin Japanese exchange – MT.GOX. In early 2014, the platform suspended all transactions, closed the site, and declared bankruptcy. A few months down the road, it became clear that MT.GOX was drained for about 850,000 Bitcoins – worth about $460 million at the time, and a lot more as of today’s BTC values.
According to a Tokyo-based security company that presented evidence in 2015, “most or all of the missing bitcoins were stolen straight out of the MT.GOX hot wallet over time.”
BTC Price Analysis: Is Bitcoin Ready To Break $11,000 As Crypto Market Cap Reclaims $350B?
Bitcoin price has finally broken bullish out of a 3-day channel (orange) and making good progress towards the psychological $11,000 level above.
The return of $9 billion to the global crypto market today has allowed BTC to return above $10,900 for the first time in 7 days and caused over $9 million worth of short liquidations on BitMEX – according to Datamish figures.
Avast majority of altcoins are also enjoying positive returns as Bitcoin lifts the rest of the market.
Despite the breakout, bearish traders are still putting up a strong fight right now. The $10,900 price point is seeing a lot of selling pressure bear down on the uptrend and is hindering Bitcoin’s current throwback rally attempt.
Price Levels to Watch in the Short-term
On the weekly BTC/USD, we can see that bulls are battling to break above the previous weekly open at $10,920. This is the first major resistance standing in the way of bitcoin’s progress towards $11K. Above this price point, we also have the $10,970 level which should create some friction in the uptrend.
Looking at the price action more closely on the 4-hour timeframe, we can see that bulls are trying to launch off from the 0.382 Fibonacci level at $10,832, which recently flipped from resistance to support. This is our first major support as BTC tries to reclaim $11K. If bears succeed in overcoming this key level, then we should expect to see prices fall back on the former channel resistance at around $10,810, and potentially dip back inside on to the 200 EMA (red) at $10,780.
Beneath that, we have the channel median line (dashed line) at $10,730 and the 50 EMA (blue) at $10,695 as additional supports.
Should bulls manage to break the $11,000 mark and maintain momentum, then the next test will be to conquer the 0.5 Fibonacci level at $11,150. With BTC already at 63 on the 4-hour RSI indicator, it’s possible that reaching this area will push the leading crypto into the overbought region and cause a sharp correction – be aware.
Total market capital: $353 billion
Bitcoin market capital: $201 billion
Bitcoin dominance: 57.0%
*Data by Coingecko
Bitstamp BTC/USD Weekly Chart
Bitstamp BTC/USD 4-Hour Chart
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Adoption: 101 Million Users Joined Crypto in 2020, According To Cambridge Report
The University of Cambridge’s third Global Cryptoasset Benchmarking Study is here. Highlights from the report point to an almost 200% growth in the number of cryptocurrency users over the last two years. The extensive digital asset market study by Cambridge also revealed that year-on-year growth in all segments dropped to 21 percent in 2019 from 57 percent in 2018.
Unique Cryptocurrency Users Grew 189% In Last 2 Years
As per the latest edition of the Global Cryptoasset Benchmarking Study published by the University of Cambridge and the school’s Centre for Alternative Finance, the global cryptocurrency user base has jumped 189 percent since 2018.
Observations show that 101 million unique users signed up for Bitcoin and crypto-asset usage with ‘service providers’ in Q3 2020. These service providers, mainly cryptocurrency trading platforms and wallets, registered 191 million accounts for the said users. According to the Cambridge report:
In 2018, the 2nd Global Cryptoasset Benchmarking Study estimated the number of identity-verified cryptoasset users at about 35 million globally
UC has also explained this meteoric growth in crypto usage demographics.
This 189% increase in users may be explained by both a rise in the number of accounts (which increased by 37%), as well as a greater share of accounts being systematically linked to an individual’s identity, allowing us to increase our estimate of minimum user numbers associated with accounts on each service provider.
The report authors have stated that not just their survey, but studies conducted by the UK Financial Conduct Authority also arrived at a 78 percent increase (compared to 2019) in crypto asset ownership amongst individuals globally.
Retail Users Are More Than Institutional Users
The latest UC crypto study states that despite the development of professional cryptocurrency investment infrastructure for institutions, retail customers are the most dominant section of users.
…cryptoasset service providers’ customer base is still primarily retail-driven, showing that despite growing institutional interest, the conversion rate (from expression of interest to investment) remains limited.
As per the team who conducted and compiled the research, gnawing issues such as market manipulation and cryptocurrency price volatility have resulted in the traditional institutional investing class reflecting a tepid interest in entering positions.
On the bright side, however, the benchmark cryptocurrency study noted that 30% of customers registered with North American and European service providing firms are ‘business and institutional clients.’ In contrast, this figure for APAC, LAC, and MEA is 16%, 10%, and 20%, respectively.
In the conclusion of the observations on crypto users, the UC research states that many service providers in the Asia-Pacific (APAC) region have bitcoin and cryptocurrency miners as their customers. This is due to the extensive concentration of mining activities, ‘especially in China.’ The report said:
Miners use their services to liquidate their coin inventory for national fiat currencies and cover fiat-based expenditures.
Also, miners engage in hedging their crypto earnings considerably. An increasing number of these digital asset minters prefer putting up their cryptocurrencies as collateral in exchange for fiat funds.
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