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Crypto.com announced that it would shut down its institutional exchange services customers in the United States in less than two weeks. On Friday, Singapore-based crypto exchange Crypto.com announced that it would suspend its institutional exchange service for US customers. In a statement provided to media publication Blockworks, the exchange explained that demand is drying up due to the current market conditions in the US. Although it did not specifically reference the lawsuits against Binance and Coinbase, it was undoubtedly the overriding factor in the exchange’s decision. In a statement, Crypto.com said: We recently made a business decision to suspend the institutional offering of the Crypto.com Exchange in the U.S. as of 11:59 pm EDT June 21, 2023, due to “limited demand” from institutions in the U.S. in the “current market landscape.” Impacted institutional users were given advance notice to support a smooth transition. The exchange explained that the closure of the US services would not affect its retail trading app, including its crypto derivative product, UpDown Options, regulated by the Commodity Futures Trading Commission (CFTC). The company further said it could reopen the platform in the future but did not provide more details. Crypto.com Receives Major Payment Institution Licence in Singapore The exchange started the month out well after receiving a Major Payment Institution (MPI) license for Digital Payment Token (DPT) services from the Monetary Authority of Singapore (MAS). Securing this license means the exchange can offer DPT services to Singaporean customers. Crypto.com Arena Not Affected After the exchange announced shuttering its institutional services for US customers, speculation arose that it might affect the naming rights for Crypto.com Arena. The exchange entered into a naming rights agreement with AEG, the owner and operator of the arena formerly known as the Staples Center, in 2021, Forbes reports. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

In a recent blog post, Ethereum co-founder Vitalik Buterin has unveiled a roadmap consisting of three significant technical transitions that he believes are vital for ensuring the long-term success and sustainability of the Ethereum blockchain. Three must-implement transitions Buterin emphasises that these transitions, namely Layer 2 scaling, wallet security enhancement, and privacy measures, are essential in maintaining Ethereum's decentralised nature and for guaranteeing open and unrestricted access for all users. Failure to implement these transitions, warns Buterin, could potentially undermine Ethereum's viability as a robust and widely adopted platform. Layer 2 scaling The first transition focuses on scaling Layer 2 solutions. Over the past few years, Ethereum has witnessed the emergence of a Layer 2 ecosystem comprising solutions like Optimistic Rollup and Zero Knowledge-Rollup, which have effectively reduced transaction costs. However, as the majority of activities still occur on the main Ethereum network, further maturation and scaling of the Layer 2 space are necessary. Buterin highlights the potential consequences of neglecting Layer 2 scaling, including skyrocketing transaction fees during market expansion phases or bullish market trends. Such circumstances may lead users to seek centralised alternatives, posing a threat to Ethereum's decentralisation goals. "The absence of the first transition, Layer 2 scaling, would render Ethereum vulnerable, with each transaction costing $3.75 ($82.48 during a bullish market). This would inevitably drive mass-market products to disregard the Ethereum chain and adopt centralized workarounds," Buterin explained. Wallet security The second transition highlighted by Buterin centres around wallet security. Buterin expresses concern that potential security risks may discourage users from storing their funds and non-financial assets on the Ethereum network, driving them towards centralised exchanges as a safer alternative. "Without the second transition, wallet security, Ethereum's success is compromised as users become hesitant to store their funds securely. This could result in a mass migration towards centralized exchanges," warns Buterin. To enhance wallet security, Buterin proposes a shift towards smart contract wallets with advanced features such as social recovery, similar to the concept of account abstraction. These enhanced wallets would offer improved security measures and an enhanced user experience. Privacy The third and final transition emphasised by Buterin is privacy. He cautions that the absence of robust data privacy measures may discourage users from utilising Ethereum's capabilities fully. To address this concern, Buterin suggests the implementation of stealth address protocols, which would provide privacy features for Ethereum users. By integrating stealth address protocols, Ethereum would be able to offer enhanced privacy options, attracting users who value anonymity and data protection. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Consensus 2023 attendees argued that improving crypto's image requires a clearer explanation of digital assets and a focus on tangible, user-centric products and services

Brian Armstrong disagrees with the SEC’s position that all crypto assets besides Bitcoin classify as securities.

In the world of decentralized finance (DeFi), there are always intriguing investment opportunities that catch the attention of seasoned investors. Cardano, a leading blockchain platform, and Avorak AI, a promising AI crypto project, have recently been highlighted by a top DeFi whale as candidates for significant growth. What is Cardano? Cardano is a decentralized blockchain […]

The SEC chairman stressed that the crypto industry has to be compliant or risk collapsing.

A U.S. judge has ordered the SEC to respond to Coinbase’s rulemaking petition or explain why it shouldn’t.

In Todays Headline TV CryptoDaily News: Ethereum reserves at multi-year lows Ethereum token reserves on exchange wallets have declined to their lowest level since 2018. As of June 5, ETH reserves sit at 17.2 million Ether, a multi-year low. Atomic Wallet users hacked for $35M The crypto industry’s latest causality occurred over the weekend as nearly $35 million worth of various tokens were stolen from Atomic Wallet, a centralized storage and wallet service. These tokens included bitcoin, ether, tether, dogecoin, litecoin, bnb coin and polygon. Bitcoin dropped below $26,000 Cryptocurrency prices dropped after the U.S. Securities and Exchange Commission charged Binance, the largest crypto exchange in the world, with violating securities laws. Bitcoin fell more than 6% to its lowest level since March. BTC/USD dove 5.5% in the last session. The Bitcoin-Dollar pair plummeted 5.5% in the last session. The RSI's negative signal is in line with the overall technical analysis. Support is at 26695.3333 and Resistance is at 27661.3333. The RSI is currently in negative territory. ETH/USD plummeted 4.4% in the last session. The Ethereum-Dollar pair dove 4.4% in the last session. According to the Stochastic-RSI, we are in an oversold market. Support is at 1866.6167 and Resistance is at 1925.8567. The Stochastic-RSI points to an oversold market. XRP/USD dove 6.1% in the last session. The Ripple-Dollar pair dropped 6.1% in the last session after rising as much as 1.3% during the session. The MACD is giving a positive signal. Support is at 0.5017 and Resistance is at 0.5629. The MACD is currently in positive territory. LTC/USD plummeted 7.1% in the last session. The Litecoin-Dollar pair dove 7.1% in the last session. The Williams indicator is giving a negative signal. Support is at 92.571 and Resistance is at 97.311. The Williams indicator is giving a negative signal. Daily Economic Calendar: US API Weekly Crude Oil Stock The API’s Weekly Statistical Bulletin reports overall U.S. and regional data relating to refinery operations and the production of the four major petroleum products. The US API Weekly Crude Oil Stock will be released at 20:30 GMT, the UK's 30-y Bond Auction at 09:30 GMT, Australia's RBA Interest Rate Decision at 04:30 GMT. UK 30-y Bond Auction The auction sets the average yield on the bonds auctioned off. Yields are set by bond market investors, and therefore they can be used to estimate investors' outlook on future interest rates. AU RBA Interest Rate Decision The RBA Interest Rate Decision is announced by the Reserve Bank of Australia. The interest rates are a key mechanism through which the central bank influences inflation. AU RBA Rate Statement Decisions regarding the interest rates are made by the Reserve Bank Board and are explained in a media release that announces the decision after each meeting. Australia's RBA Rate Statement will be released at 04:30 GMT, Japan's JP Foreign Reserves at 23:50 GMT, the US Redbook Index at 12:55 GMT. JP JP Foreign Reserves The Foreign Reserves are the total of a country's gold holdings and convertible foreign currencies held by its central bank. US Redbook Index The Johnson Redbook Index measures the year-over-year same-store sales growth from a sample of large general merchandise retailers. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

New details revealed in the SEC complaint could explain why Brian Brooks abruptly stepped down as CEO of Binance.US in 2021, a crypto lawyer suggests.

Discover the potential of combining blockchain and AI for enhanced transparency, privacy, collaboration and innovation in various industries.

Image source: AngelBlock Crypto investors have an enticing opportunity to gain early access to SOLA-X, the first project seeking to raise capital on AngelBlock, a new, non-custodial fundraising protocol. AngelBlock revealed SOLA-X as its first raise in a blog post last month, tempting investors with the promise of much greater oversight and control over the project’s progress, thanks to its clever “post-raise governance” mechanisms that ensure it must achieve specific goals prior to unlocking capital. On its website, AngelBlock explains that too many investors have been burned in the past due to a lack of transparency and governance on traditional crypto launchpads. Once the funding has been raised, crypto projects are basically left to their own devices, with no checks on their progress or control over how they use the capital they have generated. AngelBlock aims to change this with its post-raise governance, which dictates that projects must establish a series of milestones that must be met, to the satisfaction of its investors, before the next chunk of capital can be accessed. Once the project completes a milestone and files a report, investors will have the opportunity to vote on it and can either approve it and unlock the next pot of funds, or reject it and ask the team to make improvements. This way, AngelBlock says the interest of the project’s founders and investors become better aligned, increasing the prospects of success. To prevent any single investor, or groups of investors, from having a disproportionate influence on these votes, AngelBlock has created options that can define the maximal voting power of a single token holder. The idea with this is that it reinforces democratic decision-making throughout the process. “While giving investors access to exclusive deals yielding high returns and saving time, we want to shape the future of crypto by making the lives of founders and entrepreneurs easier, while protecting investor capital and driving more transparency and benefits to community members of these particular startups,” AngelBlock explains in a blog post. Regarding the first project to launch on AngelBlock, SOLA-X looks like an interesting one. It’s a DeFi protocol that has developed an “advanced liquidity management system”, wherein users can provide a single crypto asset that will be distributed across multiple liquidity pools. Its key promises are to simplify the process of providing liquidity while minimizing the risk of impermanent loss, and to do so it has created an innovative system to manage liquidity in real-time. Through this, it will be able to generate additional yields for investors. The SOLA-X protocol will be fully decentralized, with token holders able to participate in its governance and also stake them for additional rewards. You can read more about SOLA-X on its official website, and on its AngelBlock profile page. AngelBlock has developed a unique staking tiers system that grants priority access and larger ticket sizes to investors based on the amount of $THOL tokens they stake. First priority is given to institutional investors, or those who stake at least 500K $THOL, who will have a 24-hour window in which they get first dibs on the token sale. Next will be angel investors, who stake between 100K and 499K $THOL, with their own 24-hour window, followed by value investors who stake between 20K and 99K $THOL. Once that third 24-hour window closes, standard users (who can stake between 0 and 20K $THOL) will have their own opportunity to snap up whatever tokens remain. AngelBlock’s SOLA-X raise will take place at the end of this month. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

Circle has announced that it will be launching the USDC stablecoin natively on Arbitrum on the 8th of June, 2023. According to the company, the move will replace the bridged version of the stablecoin from Ethereum, which is currently in circulation. Native To Arbitrum With the announcement by Circle, USDC will be native to Arbitrum and will be the official version of the stablecoin recognized across the Arbitrum ecosystem. It will also eventually replace the bridged version of the stablecoin from Ethereum. In its statement, Circle stated that Arbitrum would rename the Ethereum-bridged version of the USDC stablecoin as USDC.e ahead of the launch of the native USDC on the 8th of June, 2023. The company added that it would also conduct an outreach to other apps in the ecosystem to make the same changes in their documentation and application UI. “USDC issued by Circle will be native to Arbitrum and will be considered the official version of USDC for the Arbitrum ecosystem. Over time, native USDC liquidity will grow and replace the currently circulating ‘bridged USDC’ liquidity that comes from Ethereum.” Benefits Of The Native USDC Circle highlighted several benefits of the native USDC launching on the highly popular Arbitrum layer-2 network. According to the company, the biggest advantage would be bringing Cross-Chain Transfer Protocol (CCTP) to Arbitrum. This would eliminate bridge withdrawal delays. Other benefits highlighted by Circle include upgradable smart contracts and the possibility of introducing institutional on and off-ramps, along with other improvements.Upgradable smart contracts would allow Circle to conduct future enhancements to the contract. Circle also talked about liquidity migration in its statement, asserting that Arbitrum would collaborate with all ecosystem apps to ensure a smooth transition of liquidity from bridged USDC to native USDC. The Arbitrum Bridge will not undergo any immediate changes during the transition period. It will continue operating normally and bridge USDC to and from Ethereum. What The Future Holds Moving forward, Circle hopes to bring CCTP to Arbitrum following the launch of the native USDC stablecoin, which would allow the stablecoin to move natively to and from Ethereum and other chains within minutes, eliminating withdrawal delays. The announcement comes a month after Circle had announced the mainnet availability of the Cross-Chain Transfer Protocol (CCTP). Circle has also announced plans to expand the Cross-Chain Transfer Protocol to other chains in late 2023. Back in April, Circle’s Vice President of Product, Joao Reginatto, explained that the Cross-Chain Transfer Protocol would give USDC native interoperability across the Web3 ecosystem. He further added that it would help the protocol address issues related to capital inefficiency and liquidity in decentralized finance (DeFi). “With CCTP, developers can simplify the user experience, and their users can trust that they are always transacting with a highly liquid, safe, and fungible asset in native USDC. This milestone makes USDC a natively multi-chain digital dollar.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Sara Gherghelas, a blockchain research analyst at DappRadar, explains how the lower barrier of entry associated with memecoins may have sparked the adoption of the crypto asset class.

On May 25th, Checkmate, Lead On-chain Analyst at Glassnode, stated that Bitcoin is at a crucial point that could lead to a significant correction, as several indicators suggest. Checkmate explained to his Twitter followers that to assess the potential correction, it is important to analyze the behaviour of Short-Term Holders, as they are mostly responsible […]

Cointelegraph analyst and writer Marcel Pechman explains why the cryptocurrency market has lost 60% of its market cap, with the S&P 500 only about 15% from its all-time high.

The highly accessible introductory text mentions all the concepts and names a curious reader would need, along with some assessments.

The silence emanating from Multichain’s leadership has amplified rumors, leading to significant unease and uncertainty among protocol users. At present, several of Multichain’s cross-chain pathways remain down, leading to a major pile-up of transactions on the protocol. Multichain’s Radio Silence The radio silence from the Multichain team has left users searching for answers, with the protocol currently holding $1.5 billion in total value locked (TVL). Multichain face a fifth day of outages and transactions that are in limbo, primarily due to multiple cross-chain pathways that are still offline. These include Polygon zkEVM, Kava, and zkSync. Initially, the team stated that this was caused due to an upgrade that was being patched. However, this explanation was revised, with the cause outlined as an ambiguous explanation of “force majeure.” The uncertainty and radio silence comes against the backdrop of unverified rumors circulating on Twitter that the protocol’s core leadership could possibly be under arrest in China. Co-founder of Multichain, DJ Qian, took to Twitter, stating he had asked Multichain CEO Zhaojun and its founding partner Xu Guochang if they could provide any help or explanation. “From yesterday to today, I received a lot of greetings. Many people sent messages asking me if I was okay. Thank you for your concern. Of course, I’m fine. At the same time, I also hope that there is nothing serious about multichain. Although I am not ashamed of what Zhaojun did before, after all, I brought Zhaojun and Guochang into the industry. I asked Guochang for some information to see if he could provide technical or other help. Well, the most important thing is the safety of user assets and the safety of people.” Leadership Under Arrest? With rumors of the team’s arrest circulating on Twitter, Multichain’s VP of Strategic Partnerships stated in a Telegram group message that he was not aware if Chinese authorities had actually detained the protocol’s leadership. Protocol CEO Zhaojun did not reply to any messages on the group in question nor to direct queries. The project’s Discord server and other Telegram groups are dealing with similar uncertainty, with no updates about the project or its future. All community members have been told to wait for any further updates. MULTI Token Plummets With the uncertainty surrounding the project, the protocol’s native MULTI token has continued its downward trajectory. With users complaining that their transactions had been stuck since Sunday, the team assured them that their funds were safe and they were working to resolve the issue. David Who, a community manager with Multichain, had given users an update, stating, “At this stage, we can’t be sure when it will be fully fixed. However, our user’s funds are safe, and pending transactions would “pass through automatically and instantly” after resolution.” However, with no resolution, the token’s price has continued to drop. Currently, the MULTI token is down over 28% and is trading at $3.80. Other Projects React Several projects have responded to the situation unfolding at Multichain. Coinflux Network became the latest to respond, stating that it had suspended Multichain’s co-mint privileges as a precautionary measure. This would prevent Multichain from minting new tokens on the project’s blockchain. Furthermore, Coinflux also added that it would work with users to mitigate any losses that may arise. Crypto Investment firm HashKey Group also revealed that it had moved $250,000 from Multichain to Gate.io. Meanwhile, Tron founder Justin Sun also revealed that he had withdrawn 470,000 of the USDD stablecoin from the protocol. Cryptocurrency exchange Binance also swung into action, announcing that it was suspending deposits for 10 bridged tokens following days of transactions being stuck in limbo. This impacted several token pairs, including Polkastarter (POLS), Alpaca Finance (ALPACA), Travala.com (AVA), Spell (SPELL), Fantom (FTM), Alchemy (ACH), Beefy (BIFI), SuperVerse (SUPER), Harvest Finance (FARM) and DeXe (DEXE). Binance’s announcement will impact users of bridged tokens on Ethereum, Avalanche, BNB Smart Chain, and Fantom. Fantom Foundation also moved to limit its exposure, withdrawing $2.4 million in liquidity of the MULTI token on the SushiSwap DEX. Andre Cronje, Fantom Foundation Director, explained that Fantom had to act due to the uncertainty surrounding Multichain and was withdrawing the funds out of caution. Cronje added, “No point to LP at times of uncertainty. You can see in the wallet the funds haven’t been sold. As soon as Multichain is able to release a statement around this and clear it up, we will LP again.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Transactions on the Multichain protocol have been delayed across multiple cross-chain bridges without a clear explanation.

The Aave community is mulling over a proposal to launch its V3 on the Coinbase-backed Layer-2 blockchain solution, Base network. Aave V3 Considers Base Deployment The upcoming Base network is a Layer-2 blockchain solution backed by the Coinbase crypto firm and is currently going through a temperature check phase by the Aave community. As per early reports, it is being considered by Aave for the deployment of its V3. The idea was first proposed by analytics firm Flipside Crypto and then brought to the attention of Aave’s governance forum by Flipside’s protocol specialist Francis Gowen, who is also one of the delegates and contributors of Aave. In his proposal, Gowen highlighted that the integration could result in multiple revenue streams for Aave V3 and open it up to a significantly larger user base. Other than suggesting the protocol, Gowen also touched upon the necessity of maintaining risk parameters for assets that would be deployed on Base. Temperature Check Ongoing The presently ongoing temperature check phase will allow the community members to experience the platform and provide initial feedback, based on which the next step of the decision might be taken. If the initial feedback is positive and garners sufficient preliminary votes, the proposal will be considered for further discussion. These discussions will include risk parameter evaluations, which, if successful, will advance the proposal to an on-chain vote as a final step before deployment. Base Mainnet To Launch After Optimism Upgrade The Base network project has so far only launched its testnet, which already displayed significant developer activity. The network has been supporting 18,000 developers who deployed 55,000 smart contracts. This indicates a strong growth potential for the mainnet once it is launched later this year. Although the Base team has yet to finalize a launch date for its mainnet, it has been announced that the project has completed its first hardfork, Regolith, in testnet. Furthermore, the OP Labs team has also completed a project infrastructure review. The team has also explained that once Optimism completes its June upgrade (Bedrock), Base will be able to move on to its internal and external audits stage to demonstrate testnet stability and then launch the mainnet. Other Interest In Base Network Aave is a decentralized and non-custodial liquidity market protocol that allows users to lend, borrow, and generate interest on multiple crypto assets, including stablecoins. The upcoming Aave V3 will be the third major iteration of the protocol and, if the above proposal is greenlit, could have a significant impact on the Base network. However, Aave is not the only crypto powerhouse considering a move to Base. A week back, the largest decentralized exchange, Uniswap, also revealed that it is considering an expansion to the Base network. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

In episode 21 of Hashing It Out, Lukas Schor, co-founder of Safe, explains that account abstraction could change how instructions and DAOs interact with the Ethereum blockchain.

Binance CEO Changpeng Zhao has said that he believes the crypto space could see the beginning of a bull run after China Central Television aired a segment on crypto. The CCTV programming has an audience of over 1 billion and could spark a bull run based on past examples. A Rare Segment On Crypto On the 23rd of May, 2023, the state broadcasting corporation, China Central Television (CCTV), aired a segment discussing the adoption of cryptocurrencies. According to the details available, the segment reported that regulators in Hong Kong have made “final preparations” for trading virtual assets in the special administrative region. According to the segment, the regulators are ready to begin accepting applications from virtual asset trading platforms. During the segment, an official representing the Securities and Futures Commission (SFC), Zhonghui Cai, explained that virtual asset regulation faces several challenges, such as the potential for conflict of interest between platforms and clients, cybersecurity, and the surety of client assets. It was previously reported that the guidelines in question would become effective by June 2023. However, the Securities and Futures Commission has yet to approve any virtual asset trading platform for retail investors. Could This Signal An Impending Bull Run? As a result of the broadcast of a segment on Chinese Central Television, the larger cryptocurrency ecosystem is buzzing with excitement. The broadcast on China’s largest state-run broadcaster caught the attention of crypto enthusiasts, including Binance CEO Changpeng Zhao. In response to the coverage, Zhao took to Twitter to predict that the coverage could lead to a bull run in the crypto market, going by previous instances. According to Zhao, past coverages similar to the one on China Central Television have historically sparked bull runs in the crypto markets. “CCTV (China Central Television) just broadcasted crypto. It’s a big deal. The Chinese-speaking communities are buzzing. Historically, coverages like these led to bull runs. Not saying the past predicts the future. And not financial advice.” Changpeng Zhao has plenty of reasons to be bullish. This bullishness stems from the fact that the coverage and greater exposure to cryptocurrencies could lead to increased interest and greater participation in the crypto markets. According to Zhao, this recent exposure to the crypto ecosystem could act as a catalyst and drive individuals to explore and invest in cryptocurrencies driving up asset prices and increasing market capitalization. However, he added that he could not predict the future and that people should be careful when investing in crypto. Broader Implications For Crypto China Central Television is the largest state broadcaster in China and broadcasts an array of programs that reaches an audience of over one billion. Furthermore, the segment did not air or mention anything negative about cryptocurrencies. This is in contrast with the position and stringent regulations adopted by Chinese authorities against cryptocurrencies. This includes a complete ban on Bitcoin mining and cryptocurrency exchanges operating in China. However, ownership of crypto assets is currently permitted. The broadcast could have significant implications for the crypto industry, both globally and in China. The exposure the segment provides could lead to increased awareness and a broader adoption and use of cryptocurrencies. Additionally, institutional investors who were watching Chinese markets and the current regulatory environment could see a ray of hope and gain some level of confidence in the market. This could lead to greater institutional adoption and capital to flow into the crypto ecosystem. In April, the Chinese version of TikTok, Douyin, started publishing cryptocurrency price quotes in its index. Duoyin has over a billion registered users. However, the price quotes were removed and replaced with the following text just a day later. “Unofficial digital currencies do not possess the same legal standing as fiat currencies. Please invest cautiously.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Cybersecurity firm Unciphered has claimed that it managed to hack the hugely popular Trezor T hardware wallet manufactured by Satoshi Labs. The Trezor T hardware wallet is one of the most popular wallets in the market today. A Potential Hardware Vulnerability? Unciphered showcased the hack in a YouTube demonstration, claiming it could extract the hardware wallet’s mnemonic seed phrase by exploiting a hardware vulnerability. In the video, Unciphered is able to dismantle the hardware before extracting the seed phrase or private key. However, the hack requires the physical possession of the wallet, along with specialized equipment. Furthermore, the cybersecurity firm also claimed that there is no way to fix the vulnerability that facilitates the hack without initiating a complete recall of all Trezor T wallets. In the video, the team at Unciphered claimed they developed an “in-house exploit” that enabled them to extract the wallet’s firmware. Co-founder of Unciphered, Eric Michaud, stated that by leveraging specialized GPU chips, the team was able to crack the Trezor T hardware wallet’s pin seed phrase. Michaud explains in the video, “We uploaded the firmware we extracted onto our high-performance computing cracking clusters. We have about 10 GPUs, and after some time, we extracted the keys.” Hardware wallets are used to store private keys offline in an air-gapped environment. Because these wallets keep the private keys offline, they are generally considered highly secure. However, Unciphered has stated that the hardware security mechanisms put in place in the Trezor T wallet could theoretically be bypassed if any hacker or malicious individual gained possession of a Trezor T wallet. An Old Vulnerability? Unciphered’s demonstration of the vulnerability in Trezor T hardware wallets resulted in speculation that it had rediscovered an old vulnerability known for years. However, Unciphered denied this, stating that the old vulnerability in question had been patched in 2019. According to the firm, the vulnerability and the method to exploit it were developed in-house. This is not the first time Unciphered has successfully retrieved seed phrases from a hardware wallet. In February, the cybersecurity company demonstrated a similar hack of a popular hardware wallet, OneKey. In the video related to OneKey, Unciphered showed how it exploited the lack of encryption between the hardware wallet’s CPU and the secure element through a field programmable gate array. This was able to intercept all communications between the secure element and the processor. “The FPGA is a high-speed processor also known as a field programmable gate array, allowing us to iterate through different algorithms, bypass the wallet’s security and extract the mnemonics.” Trezor Responds Trezor responded to Unciphered’s demonstration of the exploit and stated that it had quite a few similarities with the Read Protection Downgrade (RDP) vulnerability. This vulnerability was discovered by researchers from Kraken Security Labs and impacted both Trezor One and Trezor Model T. In short, this implied that Trezor was aware of the vulnerability. Chief technology officer at Trezor, Tomáš Sušánka, stated, “This appears to be a vulnerability called an RDP downgrade attack, and as communicated on our blog in early 2020, RDP downgrade attacks require the physical theft of a device and extremely sophisticated technological knowledge and advanced equipment. Even with the above, Trezors can be protected by a strong passphrase, which adds another layer of security that renders an RDP downgrade useless.” The company further added that it had taken steps to resolve the issue and had developed a new secure element for hardware wallets in collaboration with its sister firm, Tropic Square. Hardware Wallets Not As Safe As They Claim To Be? With their promise of keeping seed phrases and access codes offline and safe from the prying eyes of hackers, hardware wallets have long been considered the pinnacle of safety when it comes to storing digital assets. Their popularity grew even further with the collapse of major centralized exchanges such as FTX, with investors and users opting for self-custody of their assets. However, recent events have put a considerable dent in the reputation of hardware wallets. One of the primary events that led to the confidence crisis in hardware wallets was the announcement of Ledger Recover. Ledger’s Recover feature set the cat among the pigeons as it sparked concerns that third parties could gain access to private keys, allowing them access to the crypto held in the wallets. Ledger’s response did little to calm frayed nerves and led to considerable backlash for Ledger. Eventually, Ledger was forced to postpone the feature’s release and open-source the code for transparency. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Over the last year, the prices of Tesla shares and Shiba Inu (SHIB) tokens have shown a remarkable correlation. While the reason behind this trend is still unclear, experts are now trying to explain why such a relationship exists between these two seemingly unrelated assets. The primary hypothesis is that investors are turning towards cryptocurrency […]

Billionaire investor, “Shark Tank” personality, and Dallas Mavericks owner Mark Cuban shared a proposal on Tuesday about how cryptocurrency tokens should be decentralized in the future to avoid being on the receiving end of SEC enforcement actions.