Five top crypto stories this past week: FTX, Celsius updates to $65 million in hacks

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By BitcoinWiki News

Key Takeaways:

– Former FTX executive Ryan Salame pleads guilty to charges related to conduct at FTX.
– Former Celsius CEO Alex Mashinsky’s home and assets ordered frozen.
– Lazarus group gets away with a $41 million dollar heist.
– Crypto investor loses $24 to a phishing attack.
– Texas pays Bitcoin miners not to mine Bitcoin.

1. Lazarus Group’s $41 million heist: The FBI attributed the recent theft of $41 million from crypto sports betting platform to the North Korea-affiliated Lazarus Group. This incident is one of several high-profile heists orchestrated by the group, totaling over $200 million this year. Legislation like the Crypto-Asset National Security Enhancement and Enforcement Act (CANSEE) aims to combat such attacks.

2. Ethereum user loses $24 million to a phishing attack: An individual lost $24 million in Ethereum due to a phishing attack. Security firms believe the individual was deceived into authorizing malicious transactions through a phishing link. This is one of the largest individual crypto phishing events recorded.

3. Former FTX executive pleads guilty: Ryan Salame, a former FTX executive, pleaded guilty to charges of conspiracy to make unlawful political contributions and operate an unlicensed money transmitting business. Salame made $10 million in political contributions under the guise of loans and has agreed to surrender $1.6 billion in assets and forfeit properties and a Porsche.

4. Alex Mashinsky’s assets frozen: The assets and property of former Celsius CEO Alex Mashinsky have been frozen following allegations of fraud and misleading investors. Mashinsky’s arrest in July led to scrutiny from regulators, including the SEC, CFTC, and FTC, accusing him of fraudulently raising funds. Despite the charges, Mashinsky maintains his innocence.

5. Texas pays bitcoin miners not to mine: Bitcoin mining companies Riot Platforms and Iris Energy received energy credits from the state of Texas for reducing power consumption during peak demand periods. Riot Platforms curtailed power usage by over 95% and was compensated with $31.7 million, while Iris Energy received $2.3 million in credits. This is part of a Texas state program incentivizing miners to lower energy consumption during grid congestion.

Regulation-friendly alternative to Tornado Cash: Tornado Cash co-founder Roman Storm pleaded not guilty to charges of conspiracy to commit money laundering. Ethereum co-founder Vitalik Buterin, along with others, co-authored a research paper introducing a privacy protocol named Privacy Pools as a potential alternative to Tornado Cash. Privacy Pools ensures transactional privacy on blockchains while complying with regulations using zero-knowledge proofs.

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