A recent griefing attack on the Bitcoin testnet has caused significant disruption, leading to the generation of three years’ worth of blocks in just one week. Griefing attacks involve intentionally spamming transactions on a network, increasing its workload, and disrupting its normal operations. Jameson Lopp, co-founder and Chief Security Officer of Casa, publicly claimed responsibility for the attack, generating over 165,000 blocks within the past week.

Lopp explained that the purpose of the attack was to advocate for a reset of Bitcoin’s test network, ensuring that testnet coins have no value and developers can test their software without incurring costs. He also highlighted a bug in the testnet’s consensus code that allows for the creation of massive block amounts in a short time, urging developers to address this vulnerability.

Hashrate and difficulty data on the Bitcoin network testnet indicated a spike to 2,315 TH/s on April 19 before returning to 346 TH/s on April 28. The attack caused interruptions in node syncing, making it impossible to reach the tip due to the high volume of new blocks.

Leo Weese, technical content lead at Lightning Labs, observed the disruption, expressing concerns about the future of permission-less testing networks. While the Bitcoin testnet didn’t suffer significant harm, it did disrupt the testing efforts of open-source Bitcoin application builders.

Despite Lopp’s characterization of the incident as a “free stress test,” it faced backlash from the crypto community. Francis Pouliot, co-founder of Bull Bitcoin, emphasized the impact on legitimate testing efforts, highlighting the wasted time and resources of developers.

While the Bitcoin testnet withstood the attack, the incident underscores the challenges of maintaining open and accessible testing environments in the crypto space amidst malicious activities.

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Trust Wallet has made a swift return to the Google Play Store after experiencing a temporary removal on Monday morning, causing concern among Android users relying on the crypto wallet service.

The company addressed the issue via its official channels, acknowledging Google’s decision to temporarily remove the app from the Play Store. Despite submitting an appeal weeks prior, Trust Wallet was taken down while awaiting a response from Google.

During the removal period, Trust Wallet advised Android users to download an Android Package Kit (APK) from its website to access the wallet service. However, the company reassured existing Android users that their funds remained secure and unaffected by the app’s removal.

Furthermore, Trust Wallet highlighted that users who had uninstalled the app would need to wait for Google to relist it before being able to download it again. While the iOS version and Google Chrome Browser Extension of Trust Wallet remained unaffected, the company expressed concerns about potential scams involving fraudulent applications impersonating the legitimate wallet service.

Fortunately, Trust Wallet’s hiatus from the Google Play Store was short-lived, with the company announcing its swift return by 7:30 a.m. EST. The Android version of the app was restored on the Play Store, much to the relief of users and the Trust Wallet team alike.

In the wake of Trust Wallet’s brief removal, the native coin of the wallet service, Trust Wallet Token (TWT), experienced a 5.2% decline in value as of Monday morning.

The incident with Trust Wallet’s removal raised concerns among users, especially in light of increased regulatory scrutiny in the U.S. surrounding self-custody crypto wallets. Notably, Wasabi Wallets recently announced a ban on U.S.-based users due to regulatory uncertainties, following money laundering charges against the founders of another self-custody wallet service, Samourai Wallet.

As regulatory pressures mount, the status of self-custody crypto wallets like Trust Wallet remains uncertain, with potential implications for their classification and regulatory oversight in the future.

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Tether, the prominent issuer of stablecoin USDT, announced on Monday a significant investment of $200 million to acquire a majority stake in Blackrock Neurotech, a pioneering brain-computer interface company. Through its venture capital arm, Tether Evo, the company aims to support the development and commercialization of Blackrock Neurotech’s groundbreaking medical devices.

Blackrock Neurotech specializes in the creation of medical devices driven by brain signals, with a focus on assisting individuals affected by paralysis and neurological disorders. It’s worth noting that the technology firm is distinct from the asset management giant BlackRock.

The infusion of capital from Tether will facilitate the deployment and market entry of these innovative medical devices. Additionally, funds will be allocated towards ongoing research and development initiatives to further enhance the company’s offerings, as highlighted in the press release.

With a market capitalization of $110 billion, Tether stands as a leader in the stablecoin market. In recent times, the company has diversified its interests by establishing four divisions beyond stablecoin issuance.

Paolo Ardoino, CEO of Tether, expressed the company’s commitment to fostering emerging technologies with transformative potential. He emphasized the belief in the revolutionary capabilities of Blackrock Neurotech’s Brain-Computer Interfaces, which can revolutionize communication, rehabilitation, and cognitive enhancement.

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Cryptocurrency exchange Binance finds itself entangled in a fresh legal battle as a new class-action lawsuit unfolds in Canada. Plaintiffs allege that Binance has run afoul of local securities regulations.

The Ontario Superior Court of Justice has initiated a certification motion for a class-action lawsuit against Binance. The core accusation revolves around the sale of crypto derivative products to retail investors without proper registration, according to the plaintiffs.

The lawsuit is seeking damages and the rescission of illicit derivative trades. Plaintiffs argue that tens of thousands of Canadian users engaged in Binance’s cryptocurrency derivatives offerings through its platform.

Further complicating matters, the Philippines Securities and Exchange Commission (SEC) has directed both Google and Apple to remove the Binance app from their respective app stores for users in the Philippines.

Emilio Aquino, chair of the SEC, emphasized that selling or offering unregistered securities to locals and operating as an unregistered broker breaches the country’s securities regulations. Removing Binance’s applications from digital app marketplaces, according to Aquino, is crucial to curb the proliferation of its illicit activities in the Philippines, which could otherwise have detrimental effects on the local economy.

Meanwhile, in the United States, prosecutors have recommended a 36-month prison sentence for Binance founder Changpeng “CZ” Zhao. This recommendation comes after Zhao pleaded guilty to charges related to money laundering.

In their filing to the U.S. District Court for the Western District of Washington, prosecutors underscored the gravity of Zhao’s deliberate violation of U.S. law and its repercussions. They argue that the proposed 36-month sentence, coupled with a $50 million fine, strikes an appropriate balance in addressing the pertinent legal factors and achieving the objectives of sentencing.

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Michael Saylor’s bold move to embrace Bitcoin in 2020 has yielded substantial gains for the co-founder and executive chairman of MicroStrategy Inc (NASDAQ:MSTR). Saylor has reportedly earned around $400 million from pre-planned daily sales of approximately 5,000 shares of MicroStrategy since January, fueled by the stock’s remarkable surge.

The stock, which has doubled this year to approximately $1,280, has outpaced the gains of Bitcoin, the cryptocurrency Saylor embraced. MicroStrategy’s stock performance appears to allay investor concerns regarding Saylor’s selling activity, given his controlling stake in the company.

Despite questions about MicroStrategy’s premium over Bitcoin, particularly after the introduction of US exchange-traded funds for the cryptocurrency, investor sentiment remains positive. However, some skeptics, like Kerrisdale Capital Management LLC, have taken short positions, citing the stock’s outpacing of Bitcoin’s price surge.

The anticipation now shifts to MicroStrategy’s first-quarter results, expected after regular trading hours on Monday. Analysts project flat revenue of around $122 million, with a forecasted net loss of 61 cents per share. MicroStrategy’s Bitcoin holdings, currently valued at approximately $14 billion, have been a key factor driving its investment strategy.

Investor focus also centers on MicroStrategy’s adoption of an accounting rule to value Bitcoin at market prices, with a deadline set for 2025. Despite past impairment charges, MicroStrategy continues to expand its Bitcoin holdings, having already spent over $1 billion on the cryptocurrency in the first quarter of 2024.

“Saylor has a simple strategy for MSTR: sell equity/debt and buy BTC with proceeds,” noted Jeff Dorman, chief investment officer at Arca, highlighting MicroStrategy’s ongoing commitment to its Bitcoin-centric investment approach.

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