Flashbots: $60 Million Investment for Transparent and Decentralized Ethereum Blockchain Transactions

San Francisco-based firm Paradigm invested $60 million in #Flashbots , a Cayman Islands-based software provider for Ethereum blockchain transactions.

The series B funding, via "decentralization beauty contest," led to a valuation of at least $1 billion.

Flashbots specializes in addressing "maximal extractable value" (MEV) issues, aiming for transparency and decentralization through their #SUAVE technology.

This funding comes after a quiet period and a previous controversy when the Office of Foreign Assets Control (#OFAC ) sanctioned smart contracts, leading to network changes. Critics will observe how this investment impacts transparency and efficiency in the crypto space.

#Binance
#crypto2023

The U.S. Office of Foreign Assets Control (OFAC) has taken action by imposing sanctions on 17 cryptocurrency wallets associated with illegal drug activities. These wallets, which hold BTC, ETH, and TRX, belong to five individuals and six companies involved in fentanyl trafficking by Chinese traders. These wallets have reportedly received significant sums in cryptocurrency transactions. Notably, this marks the first time a TRX address has been included in OFAC's list of sanctioned addresses. 🚫💰 #OFAC #CryptocurrencySanctions #IllegalDrugs

#FinCEN issued an alert on October 20th to financial institutions, urging them to identify and report "suspicious activity" related to funding terrorist groups, with a specific focus on Hamas . The alert pointed out that Hamas has been using virtual currency and fictitious charities to raise both fiat and virtual currency for its activities. Financial institutions were advised to watch for clients engaged in transactions with businesses in Hamas-associated jurisdictions, entities on the Office of Foreign Assets Control's list of Specially Designated Nationals, and those soliciting cryptocurrency donations through social media. This warning comes after FinCEN proposed designating #crypto -mixing services as a primary concern related to money laundering and terrorism financing. U.S lawmakers and officials have also intensified efforts to combat "crypto-financed terrorism" following reports of Hamas using #cryptocurrency for fundraising, with over 100 lawmakers requesting an explanation of the administration's strategy to address this issue. The U.S Department of the Treasury's Office of Foreign Assets Control ( #OFAC ) imposed sanctions on a Gaza-based virtual currency exchange and other Hamas operatives in response to these concerns. This is not the first time FinCEN has issued such a warning; a similar alert was issued in March 2022 concerning Russian entities attempting to evade sanctions using #cryptocurrencies during the invasion of Ukraine.

🧊 Tether freezes 161 Ethereum wallets, targeting individuals under U.S. OFAC sanctions; 150 wallets didn't contain USDT, while over 3.5 million USDT is held in the remaining 11 wallets, with 3.4 million in one wallet. #Tether #OFAC #USDT 🚫💰

Tether Acted Bravely and Raised Security Standards in the Crypto Space. 💪🏻🛡️

In a groundbreaking stride towards fortifying security, Tether, the driving force behind the largest stablecoin, has introduced a pioneering wallet-freezing policy. This proactive measure, revealed on December 1, 2023, aligns with U.S. Office of Foreign Asset Controls (OFAC) regulations, specifically targeting individuals on the Specially Designated Nationals (SDN) List.

Strategic Security Measures

Under the guidance of Tether's new CEO, Paolo Ardoino, the initiative aims to curb the misuse of Tether tokens. This underscores Tether's unwavering commitment to complying with existing laws and bolstering overall platform security.

CEO's Vision

Paolo Ardoino, transitioning from CTO to CEO, emphasizes Tether's dedication to upholding high safety standards. This move signifies a bid to strengthen Tether's ties with global law enforcement and regulatory bodies.

Freezing Protocol

The new policy involves freezing wallets listed on the OFAC's SDN List, encompassing both existing and future additions. This strategic decision is geared towards preventing token misuse, emphasizing Tether's commitment to regulatory compliance.

Shift in Compliance Approach

Tether, previously cautious about freezing wallets tied to sanctioned entities, now takes a resolute stance on compliance and security. Blockchain records reveal Tether blacklisting contract addresses associated with the Tornado Cash protocol.

Industry Impact

Anticipated to set a new industry standard by prioritizing user safety and contributing to overall market integrity. Positions Tether as a frontrunner in championing a secure environment for stablecoin usage.

Leadership Initiative

Paolo Ardoino's leadership mirrors Tether's dedication to evolving with industry needs and challenges. Tether aims to forge close collaborations with global regulators and law enforcement to ensure a stable and secure environment for digital asset transactions.

#Tether #OFAC #PaoloArdoino #SDN #USDT

US Arrests Creator of $130M Botnet

🇺🇸 The US Department of Justice has taken down the infamous botnet 911 S5, responsible for numerous #cyberattacks and frauds. Its creator, 35-year-old Yunhe Wang, who holds citizenship in #China and Saint Kitts and Nevis, has been arrested.

🧑‍💻 From 2014 to 2022, Wang compromised a million home computers across 200 countries by offering free VPN services with backdoors. He then created a botnet with over 19 million IP addresses, selling access to other cybercriminals for cryptocurrencies.

🤖🕸The botnet facilitated a range of crimes, including financial fraud, identity theft, and child exploitation. Chainalysis analysts revealed that Wang’s associated wallets contained over $130 million in digital #assets .

🚓 Authorities have seized 23 domains on 70 servers and $30 million in funds. The Office of Foreign Assets Control (#OFAC ) has imposed financial sanctions on Wang, his accomplices, and his controlled organizations.
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#Vitalik_Buterin has joined a team of authors working on research regarding Privacy Pools, a new privacy protocol that could provide an alternative to Tornado Cash. This project also involves Amin Sulaimani, a developer; Jacob Illum, a researcher from Chainalysis; as well as Matthias Nadler and Fabian Shar, scientists.

The primary goal of Privacy Pools is to create a mechanism that achieves a "balancing act," filtering funds associated with illicit activities while finding a balance between privacy and regulatory compliance. This is accomplished using Zero-Knowledge Proofs (ZKPs).

The core idea of the proposal is the ability to publish #ZKPs that confirm the legitimacy of funds without revealing the entire transaction graph. The authors argue that privacy and regulatory compliance can coexist.

Researchers acknowledged #TornadoCash as a valuable tool for ensuring privacy but noted its vulnerability to abuse by illegal entities. In August 2022, the U.S. Office of Foreign Assets Control #OFAC included the Tornado Cash website on its sanctions list, claiming that it had laundered over $7 billion in cryptocurrency, including more than $455 million associated with the Lazarus Group, a North Korean hacker group.

On August 12, developer Alexey Pertsev, associated with Tornado Cash, was arrested in the Netherlands on suspicion of involvement in money laundering and concealing illicit financial flows, although he denied all accusations. In April 2023, a court changed Pertsev's pretrial detention to house arrest.

This is not the first time Vitalik Buterin has expressed interest in privacy matters within the cryptocurrency world. Earlier this year, he called privacy the "single biggest remaining problem" for #Ethereum and proposed his solution.$ETH