Blockchain Intel Tuesday #9

February 1, 2022 - Government entities are closing in on establ;hsing more concrete positions on blockchain adoption? May be, or may be not. Details on two massive Ponzi schemes uncovered along with recent rug pulls on Binance Smart Chain and others.

Blockchain News
  • After the intense crackdowns on Bitcoin mining, China is making strides toward establishing blockchain trial zones. Local government departments, universities, banks, hospitals, car companies and power firms are among the 164 entities chosen by China to carry out trial blockchain applications.

  • Previously reported that Rio de Janeiro (Brazil) said that the town will be puting 1% of its Treasury into Bitcoin.

  • US SEC approves a new US exchange with blockchain feed and faster settlement times. The U.S. Securities and Exchange Commission (SEC) late on Thursday approved the country's 17th stock exchange, BSTX, which will incorporate blockchain technology. BSTX ultimately aims to expand trading to all U.S. stocks and potentially tokenized securities, Fraser said. Stock tokens are digital versions of equities pegged to the underlying share, usually traded in fractional units.

  • It appears that the Unhosted Crypto Wallet Rule is coming back to the table. The proposed rule would enforce KYC rules onto unhosted or self-hosted crypto wallets such as Exoduc, Ledger or Trezor (essentially any non-custodial wallets) requiring crypto exchanges to collect names and home addresses, among other personal details, from anyone hoping to transfer cryptocurrencies to their own private wallets.

  • Uncancelled listings of NFT sold below fair value. Some OpenSea users reported that their high-value collectibles were sold below its fair value.

  • US Crypto Executive Order may be coming this week.


Hacks and Scams
  • The verdict is still out on Blockverse rug pull which may possibly be a rug pull loss of $1.2M.

  • CrossWiseFi was exploited on Binance Smart Chain leading to the loss of approximately $878k. Probable causes identified were contract vulnerabilities relating to exposed privilege function allowing hijacking owner.

  • KingFund Finance was rug pulled taking away $140k in WBNB tokens, also on Binance Smart Chain.

  • CryptoBatz, Ozzy Osbourne’s NFT project, shared a scam link, and followers lost thousands of dollars by visiting a fake Discord. Around $40k was taken. Follow our Breadcrumbs analysis here (https://www.breadcrumbs.app/reports/1004).

  • Gina Champion-Cain, a long-time San Diego business leader, restauranteur and real estate magnate, pleaded guilty in federal court today, admitting that she committed securities fraud by masterminding a massive, years-long Ponzi scheme with hundreds of victims throughout California and the United States. Over $400 million was taken since 2012 from investors.

  • Police say the company, G.A.S. Consulting & Technology, a cryptocurrency investment firm founded by a former waiter-turned-multimillionaire who is the central figure in what is alleged to be one of Brazil’s biggest-ever pyramid schemes. Owned by 38-year-old Glaidson Acácio dos Santos had total transactions worth at least $7 billion ($38 billion Reals) from 2015 through mid-2021 as part of a Bitcoin-based Ponzi scheme that promised investors 10% monthly returns.

  • Several rug pulls were identified over the past two weeks as well. CryptoBay, a metaverse gamefi platform was rugged for more than $411k. WeGro token was also rugged for around $370k. Mercenary Gold was taken for $750k, Infinity Token was also rugged for $537k. All took place on Binance Smart Chain, except for CoinExGem rug pull which took $100k, and that was on CoinExSmart Chain. What is the message? Be very careful of projects on Binance Smart Chain due to high probability of scams there.

  • Qubit Finance reported contract vulnerabilities (or the lack of validation) costing to a tune of $80M.

  • There may be other events which can also be obtained from Zero Friction's Hack and Scam DB Search.