• US prosecutors have accused Terraform Labs’ Co-Founder Do Kwon of running a cryptocurrency scam that cost investors up to $40 billion.
• A grand jury in Manhattan has charged him with securities fraud, commodities fraud, and conspiracy.
• The US SEC also claimed that Terraform Labs and Kwon organized an unregistered securities sale through digital currencies, resulting in the collapse of LUNA/UST.

US Prosecutors Accuse Do Kwon of Crypto Fraud

American prosecutors have accused Do Kwon, the Co-Founder of Terraform Labs, of running a massive cryptocurrency scam that allegedly drained at least $40 billion from investors. A grand jury in Manhattan has charged him with securities fraud, commodities fraud, and conspiracy.

US SEC’s Plea Against Terraform Labs

In addition to the accusations by US prosecutors, the US Securities and Exchange Commission (SEC) also claimed that Terraform Labs and Kwon offered and sold unregistered securities via digital currencies which ultimately led to the collapse of LUNA/UST last May. This plea was followed by a Department of Justice investigation against Terraform Labs’ former employees to determine what caused this catastrophe.

Kwon Arrested by Montenegrin Authorities

The 31-year-old developer had been on the run for several months prior to his arrest earlier this week in Montenegro after falsifying his identity multiple times while attempting to evade authorities across numerous countries.

Implications for Investors

As a result of these events, many investors have reportedly suffered substantial losses due to Kwon’s actions. It remains unclear how they will be compensated or if any form of legal recourse is available for them at this time.

Potential Penalties for Kwon

Given the magnitude of these allegations against him, it is likely that Do Kwon will face severe penalties if found guilty by US courts or other legal systems around the world where he may be subject to extradition requests from American authorities.

• The interaction between a wallet tied to Euler Finance’s exploiter and North Korea’s Lazarus Group was detected.
• Lazarus Group is a sanctioned North Korean state-sponsored cyber threat group linked to the Reconnaissance General Bureau (RGB).
• Euler Finance was exploited in a flash loan attack and the vulnerability remained on-chain for eight months prior to the exploit.

Exploiter Wallet Interaction with Lazarus Group

Days after Euler Finance was hacked, an interesting interaction was picked up from one of the exploiter wallets. On-chain analyst Lookonchain detected an address tied to the exploiter of the Ethereum-based lending protocol sent 100 Ether (approximately $171,700) to a wallet associated with Lazarus Group’s mammoth Ronin network hack. While it is still unclear if the Euler exploiter is affiliated with the North Korean state-sponsored cyber threat group linked to the North Korean Reconnaissance General Bureau (RGB), the interaction is peculiar as many community members had previously speculated that the notorious collective could be behind it.

Lazarus Group

Lazarus Group was initially sanctioned by OFAC in 2019 and has been involved in several exploits. In addition to the $625 million exploit of Axie Infinity’s Ronin network, it was also behind last year’s $100 million Harmony bridge hack.

Euler Finance Exploit

Euler Finance was exploited in a flash loan attack on March 13th. Further investigation revealed that the vulnerability remained on-chain for eight months prior to the exploit despite a $1 million bug bounty in place. Over a period of two years, six security firms namely – Halborn, Solidified, ZK Labs, Certora, Sherlock, and Omnisica – conducted ten separate audits on the lending protocol according to Euler Labs CEO Michael Bentley.

Bug Bounty

Despite having placed a $1 million bug bounty since August 2020 , Euler Finance’s vulnerability remained undetected until hackers took advantage of it earlier this week . The vulnerability allowed attackers access to funds stored as liquidity reserves within its smart contracts . It has not yet been determined how much money they were able to steal from users’ funds .

Conclusion

The case of Euler finance serves as an example for other DeFi protocols who must pay close attention when conducting their own audits and implement robust security measures if they are going remain competitive in this space .

• Bitcoin (BTC) has dropped to a two-month low of less than $20,000, with altcoins also in the red.
• This is due to the crypto market cap dropping beneath $1T and a major dump of up to 15% in some coins within 24 hours.
• This follows Fed Chair Jerome Powell speaking to Congress last week and Silvergate issues coming to light.

Bitcoin Hits 2-Month Low

Bitcoin (BTC) has dropped to a two-month low of less than $20,000, with almost all altcoins also losing value. This is due to the crypto market cap dropping significantly beneath $1T and a major dump of up to 15% in some coins within 24 hours.

Reasons for Drop

The recent drop follows Fed Chair Jerome Powell’s speech to Congress last week and Silvergate issues coming to light. The bear pressure was strong enough that BTC plummeted from almost $22,000 to under $19,900 on March 10th – its lowest price tag since January 14th.

Altcoins Not Faring Better

The altcoins are not faring any better than Bitcoin either; ETH, DOGE, SOL, LTC, TRX and many others have slumped by up between 5%-15%.

Conclusion

Overall it has been an unstable week for the cryptocurrency markets as BTC drops below the psychologically important price point at $20k.. Altcoins such as ETH, DOGE and SOL have been hit hard too as they slump by up between 5%-15%. Although there have been attempts by bulls at reversing this trend these have so far been unsuccessful.

Market Watch Summary

Crypto markets have shed over $70 billion in the past 24 hours as Bitcoin hits a two month low beneath $20k. Altcoins such as ETH, DOGE and SOL are down between 5%-15%. The primary cause appears to be related both Fed Chair Jerome Powell speaking at Congress last week and Silvergate issues coming into light.

• Bitcoin’s price crashed to $22.2K in minutes, causing a considerable tick in liquidations of around $243 million across the board.
• Silvergate Bank revealed operational challenges leading many crypto companies to abandon ship, but the nature of the crash was too quick for it to be directly related.
• Intra-day trader 52Skew clarified that the crash was due to a large Binance spot sale directly into an area of stacked up longs, which caused a margin call.

Recent Crash Causes Liquidations

The recent crash of Bitcoin’s price caused a considerable tick in liquidations, standing at around $243 million across the board for the past 24 hours.

Silvergate Bank Recent Challenges

Silvergate Bank recently revealed operational challenges which led many crypto companies to abandon ship, however, the nature of the crash seemed too quick for it to be directly related.

Reason For Crash Clarified

Intra-day trader and creator of delta-based trading systems 52Skew took it to Twitter to clarify that the reason for this particular crash was due to a large Binance spot sale directly into an area of stacked up longs, which caused a margin call.

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Conclusion

The reason behind Bitcoin’s price crashing down is still unclear; however, intra-day trader 52Skew clarified that it may have been due to Binance spot sale and stacked up longs causing a margin call.

• Republican Congressman Tom Emmer has proposed a bill to ban the Federal Reserve (Fed) from issuing a Central Bank Digital Currency (CBDC).
• The aim of the proposed bill is to protect the financial privacy of American citizens by preventing the Fed from creating a CBDC without prior review and approval from Congress.
• Rep. Emmer argued that creating a CBDC could negatively impact financial privacy and individual freedom, as it may be used by authorities and regulatory entities to track and control citizens’ spending.

Republican Congressman Tom Emmer Introduces Bill

Rep. Tom Emmer (R-Minn.) has introduced a bill in the US House of Representatives to ban the Federal Reserve (Fed) from issuing a central bank digital currency (CBDC). The “CBDC Anti-Surveillance State Act” aims to protect the financial privacy of American citizens by prohibiting the creation of a CBDC without prior review and approval from Congress.

Impact on Financial Privacy & Individual Freedom

Emmer believes that creating a CBDC could have negative implications for financial privacy and individual freedom, as authorities and regulatory entities could use it as a tool to track and control citizens’ spending. He further explained that his proposed bill prohibits the Fed from issuing such currency directly to anyone, prevents it from using it as an instrument for monetary policy or economic control, and sets up more transparency on such projects.

Supporting Technological Innovation

Despite his opposition towards creating such currency, Rep. Emmer maintained that he is not against technological innovation that may come with its creation. He stressed that these innovations should not infringe on citizens’ rights in any way or form.

Opposition From Other Legislators

The congressman’s proposal has received some opposition from other legislators who have argued against banning technology before understanding it fully or its potential use cases in society at large. They believe that this could stifle innovation in this sector which would be detrimental for America’s future economy if allowed to take place unchecked.

Conclusion

In conclusion, although there is some opposition against Rep. Emmer’s idea, he still believes that protecting individuals’ right to financial privacy should come first before anything else when considering government policies related to money or technology related topics in general.

• Bitcoin’s price has recently skyrocketed to $25K as bulls take control of the market.
• Technical analysis is showing that a breakout above the $25K level is likely, with potential targets at $30K.
• However, caution should be taken as the RSI is currently in overbought territory.

Bitcoin Price Analysis

Bitcoin’s price has recently exploded following a consolidation and pullback phase, and it is now testing a key resistance level at $25K. Technical analysis suggests that a breakout above this level is highly probable, as momentum is currently very bullish and the 50-day moving average has crossed the 200-day moving average to the upside. The next target for Bitcoin would then be around the $30K area.

Daily Chart

On the daily timeframe, there appears to be strong bullish momentum behind Bitcoin’s price action at present, making a break above the $25K resistance level more likely. In addition, recent movement of the 50-day moving average crossing over the 200-day moving average also suggests that further positive continuation may occur in this direction.

4-Hour Chart

The 4-hour chart shows that Bitcoin has been rapidly increasing after breaking back above the $22,500 mark and brushing against its current resistance level of $25K. But while momentum appears to be strongly in favor of an upwards breakout from here, caution should still be taken as the RSI indicator is deep into overbought territory.

Conclusion

Overall, technical analysis on both short and long timeframes suggest a high probability for Bitcoin’s price continuing upwards towards its next target of around $30K in coming weeks. However, traders should keep an eye on indicators such as RSI which could signal bearish retracements before this happens.

Disclaimer

This article does not constitute financial advice and investors are advised to do their own research when making investment decisions.

• Tether Holdings Limited reported a net profit of approximately $700 million in Q4 2022.
• The company finished the year with excess reserves of $960 million and consolidated total assets of around $67 billion.
• Despite the bear market, Tether’s net profits increased by over $700 million in Q4.

Tether Generated Over $700 Million in Profits in Q4, 2022

Tether Holdings Limited – the company behind the largest stablecoin USDT – revealed a net profit of around $700 million in the fourth quarter of 2022. It ended last year with excess reserves of $960 million and at least $67 million billion in consolidated total assets.

Resilience During Bear Market

Even though 2022 devastated the entire cryptocurrency sector, Tether’s net profits increased by over $700 million in Q4. It reduced its secured loans by $300 million and revealed a direct exposure of over 58% to US Treasury Bills. The data further showed that the firm finished last year with zero commercial paper and excess reserves of $960 million. Its consolidated total assets stand at $67 billion, while total liabilities equal $66 billion (almost 100% of the amount relates to issued tokens).

Ambition for Transparency

Chief Technology Officer Paolo Ardoino argued that the recent report doubles down on Tether’s ambition to “lead the industry in transparency.” He claimed the company had proven its “stability and resilience” amid a turbulent year that saw numerous bankruptcies and black swan events.

21 Billion Redemptions Executed Smoothly

Not only were they able to execute over 21 billion dollars worth of redemptions during chaotic times but also issued more than 10 billion USDT indicating continued organizational trustworthiness among investors.

Conclusion

Overall, this report shows how resilient Tether is despite turbulent markets and continues to prove their ambitions for transparency within crypto markets.

• Peer Inc. has acquired the engineering team behind Zenly’s popular 3D maps.
• The team, known as “Wonka”, developed Zenly’s social maps platform which had 160 million downloads and 35 million daily users in 2022.
• The acquisition will allow Peer Inc. to fast-track the development of its AI-powered 3D maps.

Peer Inc. has announced the acquisition of a highly-skilled engineering team from Zenly to help them develop their AI-powered 3D maps. The team, known as “Wonka”, was responsible for developing Zenly’s popular 3D social maps platform that had an impressive 160 million downloads and 35 million daily active users in 2022.

The acquisition of the Wonka team is a major milestone for Peer Inc. that will help them fast-track the development of their 3D maps. Tony Tran, the Founder and CEO of Peer Inc. expressed his enthusiasm for the acquisition and mentioned his admiration for the polished and delightful features of Zenly’s platform. He expressed his hopes that the team will bring the same level of success to Peer Inc.

The Wonka team brings with it a wealth of knowledge and experience in the development of 3D maps. The team consists of experienced engineers and designers who have worked on a variety of projects. They have extensive experience in developing 3D mapping solutions, from augmented reality and virtual reality to interactive 3D models.

The acquisition is a major step forward for Peer Inc. that will help them to create a more immersive and engaging experience for their users. With the help of the Wonka team, the company will be able to bring their AI-powered 3D maps to life faster and with greater accuracy.

The team will also be able to leverage their expertise to create more engaging and interactive features for their maps. This could include features such as virtual tours, interactive 3D models, and augmented reality experiences.

Ultimately, the acquisition of the Wonka team will be a major boon for Peer Inc. and their 3D maps. With their expertise, the company is sure to create an even more engaging and immersive experience for their users.

• The FBI announced the takedown of Hive, a ransomware network with members across multiple states in Europe and North America.
• The cybercrime group targeted infrastructure and persons of interest, encrypting their data and demanding cryptocurrency in exchange for decryption.
• Despite the efforts of the FBI, the network was tough to crack but they were eventually able to penetrate the control center and gain access to the decryption keys.

The Federal Bureau of Investigation has announced the successful takedown of Hive, a ransomware network with members across multiple states in Europe and North America. The cybercriminal group had been active since at least 2021 and had been targeting infrastructure and persons of interest, encrypting their data and demanding cryptocurrency in exchange for decryption.

The FBI had been working to shut down the Hive network for some time, but the hackers had proven to be difficult to crack. However, their efforts paid off in July of 2022 when law enforcement was able to penetrate the network’s control center, giving them access to the decryption keys.

One of the high-profile targets of the Hive network was the Costa Rican healthcare service. The government organization had to pay the requested ransom in order to regain access to their data. Unfortunately, these types of cyberattacks are becoming increasingly more common as hackers become more sophisticated.

In order to prevent these types of attacks, the FBI recommends that organizations make sure their networks are up to date and their systems are secure. They also suggest that organizations have a plan in place in the event of a cyberattack, and that they have a team of professionals available to help them respond to the attack in a timely manner.

The FBI is committed to fighting cybercrime and is working hard to ensure that networks and systems are secure and that malicious actors are held responsible for their actions. It is only through the combined efforts of law enforcement and the private sector that these types of cybercrimes can be stopped.

• Aptos (APT) surged 36% in the past 24 hours, setting a new ATH.
• Bitcoin attempted to break the $24K resistance but was rejected, continuing to trade between $22,000 and $23,000.
• Other altcoins, such as ApeCoin, Solana and others, followed Aptos’ lead, registering significant gains.

In the past 24 hours, Aptos (APT) has soared an incredible 36%, setting a new all-time high (ATH) and leading the rest of the cryptocurrency market. This surge comes after a few days of calmer trading, during which Bitcoin was stuck between $22,000 and $23,000. The asset’s volatility has finally returned, and it attempted to break the $24,000 resistance. However, it was ultimately rejected, and BTC is now trading between the aforementioned price range.

Altcoins have also followed Aptos’ lead, with ApeCoin, Solana and others registering significant gains. ApeCoin surged 14%, while Solana saw an impressive 20% surge in the past 24 hours. Additionally, Ethereum and Litecoin have also experienced gains, although not nearly as significant as those of Aptos and its peers.

As a result of this market movement, the overall market cap of the cryptocurrency space has grown significantly. It is currently standing at $625 billion, a new ATH and a clear indication of the bullish market sentiment.

It appears that the crypto market is gaining traction and could be in for a long-term bull run. This is evidenced by the fact that ATHs are being set on a regular basis, as well as the impressive gains of altcoins. It remains to be seen how long this uptrend will last and how high the market can go. For now, it is safe to say that the crypto market is in a very healthy state.