Companies have sprung up that say they can recover stolen crypto. That rarely happens.
Forbes published an article about a new industry that has cropped up that promise victims of crypto scams to spend more money in order to recover their already-lost sums, with scant evidence that they regularly work as advertised. Multiple U.S. financial and law enforcement agencies generally tell scam victims to treat these services with a healthy dose of skepticism. That’s because even if one of these companies is involved, law enforcement still has to do its own independent investigation — for which victims aren’t charged. Plus, no private company has the authority to compel the freezing, much less the seizure, of crypto assets held at an exchange. [Read more at Forbes]
Over 13 Million ALGO Now Suspected Stolen, Algorand Foundation CTO Responds To The Situation
Over 13 million ($3.5 million) ALGO has reportedly been stolen between 19th to 21th of February, over 12 accounts have been affected. Most of the stolen ALGO was transferred to the ChangeNow, a non-custodial crypto exchange that operates without extending know-your-customer (KYC) to all its users. However, the ChangeNOW team has implemented anti-money laundering (AML) mechanisms designed to detect fraud and filter suspicious transactions, and had halted $1.5 million of suspicious ALGO and USDC transactions on the Algorand blockchain and stopped the malicious actors from accessing the stolen funds any further. [Read more at AlgoDaddy]
There may be a connection with MyAlgo web-based non-custodial wallets, which recently reported a targeted attack carried out against a group of high-profile MyAlgo accounts. MyAlgo wallets keep users’ encrypted private keys on their local devices, accessed using passwords and mnemonic phrases. However, being a web-based wallet, it is vulnerable to phishing attacks. According to MyAlgo, it appears that the attacked users all had significant funds in their accounts and were using mnemonic wallets with the key stored in the browser. None were using hardware wallets. The firm is strongly advising all users to withdraw any funds from mnemonic wallets that were stored in MyAlgo.
Upcoming conferences, webinars and speaking engagements:
- I’ll be providing a (probably virtual) update on global central bank digital currency (CBDC) developments at the Digital Euro Association Digital Euro Conference on March 31 in Frankfurt. [Register here]
- I’ll be moderating a panel on “what happens when the lights go out…different schemes for offline functionality” at the in-person Digital Currency Conference (DCC) in Mexico City on May 18. [Register here]
Kiffmeister’s global central bank digital currency monthly monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at email@example.com.
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (firstname.lastname@example.org).
Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]