Phishing attacks within the crypto industry decreased by 46% to $38 million in April, marking the lowest amount recorded this year, according to the security firm Scam Sniffer. Notably, this decline aligns with CertiK’s findings, indicating that crypto-related exploits and scams reached a historic low of $25.7 million in April.

April’s Phishing Attack Insights

According to Scam Sniffer’s analysis, the Coinbase-backed Ethereum layer-2 network Base experienced a notable surge of 145% to $8.2 million in phishing incidents during the past month. Interestingly, two of the top 10 largest single thefts occurred on this chain, constituting 21% of the month’s total theft.

ERC-20 tokens faced the brunt of these attacks, with a staggering 88% of the stolen assets belonging to this class.

Tools and Tactics Employed by Attackers

Scam Sniffer has pinpointed fake accounts on the social media platform X (previously known as Twitter) as the primary tool utilized by scammers. These attackers impersonated prominent projects like Renzo, Avail, Ether.fi, Wormhole, and Omni. These fake accounts often displayed counterfeit verification marks, giving them an appearance of authenticity that was exploited to lure unsuspecting users.

Using these fake accounts, the attackers posted deceptive comments on social media platforms to redirect unsuspecting individuals to malicious sites where their assets could be stolen.

Additionally, the attackers frequently utilized phishing signatures such as Permit, IncreaseAllowance, and Uniswap Permit2. These malicious signatures enabled the attackers to access their victim’s funds without their knowledge.

Scam Sniffer further added that despite wallets increasing phishing alerts for certain signatures, wallet drainers are actively finding ways to circumvent these alerts by using legitimate contracts like Disperse and Uniswap Multicall, along with variants of value normalization.

Featured Image: Freepik

Please See Disclaimer

MetaMask, the leading Ethereum crypto wallet, is unveiling a new feature called Smart Transactions this week, aimed at mitigating the impact of maximal extractable value on users.

Smart Transactions, an optional feature, enables users to submit transactions to a “virtual mempool” before they are officially recorded on the blockchain. Developed by ConsenSys, the company behind MetaMask, this virtual mempool defends against certain MEV strategies by simulating transactions behind the scenes to secure lower fees for users.

MEV represents additional profit blockchain operators can extract by manipulating transactions before they are processed, similar to front-running in traditional financial markets. MEV significantly influences Ethereum’s functionality, inflating costs, slowing transaction speeds, and occasionally causing transactions to fail.

Jason Linehan, director of ConsenSys’ Special Mechanisms Group, highlighted the prevalence of wasted funds due to MEV-related issues, emphasizing the urgent need for solutions to enhance user experience.

MetaMask’s virtual mempool initiative mirrors private mempools, which enhance transaction privacy and guard against MEV. This marks the platform’s initial step in an ambitious roadmap, aimed at revolutionizing MetaMask’s transaction routing methods on Ethereum.

Linehan clarified that MetaMask’s virtual mempool is distinct from conventional private mempools and is essential for addressing Ethereum’s substantial hidden expenses.

Smart Transactions operate by leveraging Ethereum’s existing infrastructure, with MetaMask’s virtual mempool financially penalizing builders and searchers if they deviate from quoted transaction prices. Linehan noted that the majority of Ethereum’s current operators have already opted into MetaMask’s virtual mempool program.

In addition to securing better prices for users, Smart Transactions simplify transaction tracking within MetaMask, eliminating the need for users to navigate external block explorer websites.

Linehan described Smart Transactions as a foundational step towards MetaMask’s broader objectives, envisioning future developments such as intent-based architectures.

Featured Image: Freepik

Please See Disclaimer

Robinhood Markets Inc. (NASDAQ:HOOD) disclosed in a regulatory filing on Monday that it has received a formal warning from regulators regarding potential enforcement action related to its cryptocurrency operations.

The warning, known as a Wells notice from the US Securities and Exchange Commission, specifically pertains to Robinhood Crypto and various aspects of its cryptocurrency business, including listings, custody procedures, and platform operations.

According to the filing, the SEC’s staff informed Robinhood that they have made a “preliminary determination” to recommend that the SEC pursue enforcement action against the company.

Potential outcomes of this action could include an injunction, a cease-and-desist order, disgorgement of profits, and other penalties or restrictions on business activities.

Robinhood stated that it had previously received a subpoena related to the investigation and has cooperated with the SEC throughout the process.

It’s important to note that a Wells Notice provides the company with an opportunity to respond to the SEC’s allegations, and the issuance of such a notice does not necessarily guarantee that enforcement action will ultimately be taken.

Featured Image: Freepik

 Please See Disclaimer

Cryptocurrency exchange Coinbase (NASDAQ:COIN) exceeded expectations in its first-quarter earnings report, outperforming both revenue and earnings projections. The company reported revenue of $1.64 billion, surpassing estimates of $1.32 billion, with adjusted earnings per share (EPS) reaching $4.40, exceeding the projected $1.07.

To analyze Coinbase’s performance, Steve Jang, Founder and Managing Partner of Kindred Ventures, joins Market Domination Overtime. Jang highlights the approval of bitcoin ETFs as a positive factor for Coinbase, particularly benefiting its consumer trading segment. He emphasizes Coinbase’s transition into its “second chapter” post-IPO, positioning itself as a key service provider for major financial institutions globally.

Drawing parallels to tech giants like Facebook (NASDAQ:FB) and Amazon Web Services (NASDAQ:AMZN) in their early stages, Jang commends Coinbase’s forward-looking strategy, particularly in creating a platform for developers. He predicts that this approach will drive Coinbase’s long-term growth, stating, “Coinbase is, was, and continues to be the best company to build the pillars that create the gateway for crypto and traditional finance.”

Featured Image: Freepik

Please See Disclaimer

Led by CEO Jack Dorsey, payments firm Block (NYSE:SQ) has commenced a dollar cost averaging initiative to expand its substantial bitcoin reserves. Starting in April, the company allocated 10% of its monthly bitcoin-related gross profit to purchase additional bitcoin, intending to continue this practice throughout 2024.

During the first quarter, Block reported $80 million in bitcoin gross profit. If this level persists for the remainder of the year, the company will accumulate approximately $24 million worth of bitcoin under this program, further bolstering its balance sheet.

Block already holds a significant amount of bitcoin, having acquired 4,709 bitcoins in October 2020 and an additional 3,318 tokens in early 2021. With bitcoin’s current price hovering around $59,000, these holdings are valued at approximately $4.7 billion.

In addition to this initiative, Block has released its Bitcoin Blueprint For Corporate Balance Sheets. This blueprint outlines the methodology behind its large-scale crypto acquisitions, detailing how the company acquires significant amounts of cryptocurrency without causing significant market fluctuations. It also elucidates Block’s processes for custody, insurance, and accounting of these holdings.

Featured Image: Freepik

Please See Disclaimer