Scammers Run Off with $70K Using Fake WalletConnect App on Google Play Store

Users were swindled of more than US$70,000 in cryptocurrency by a fake wallet app impersonating the popular Web3 protocol WalletConnect. The malicious application, which was taken down by the Google Play Store after four months, exposes the ongoing challenges with securing the cryptocurrency ecosystem.

A report by Checkpoint Research estimated that the fraudulent app was downloaded 10,000 times, but only 150 users actually fell victim to the scam. This malware would ultimately redirect users to a phishing site that would subsequently deceive the user into allowing transactions and access to funds.

The actual WalletConnect protocol securely connects cryptocurrency wallets and dApps through the use of a QR code, with the user being able to confirm transactions without exposing private keys.

Michael McLaughlin of the Cybersecurity and Data Privacy Practice Group at Buchanan Ingersoll & Rooney advised to implement multi-factor authentication on crypto trading platforms, whether it's Coinbase, Kraken, or something else.

He stressed the need for wider scrutiny of cryptocurrency applications in particular, which were enabled to be rapidly uploaded and accessed through digital shops. McLaughlin suggested that users take note of an app's ratings and reviews when deciding whether to download the app: "If it has only three users and no stars, you're not going to trust it," he said.

Sophisticated Phishing Attack Steals $32M in spWETH from User

A sophisticated phishing attack siphoned off 12,083 Spark Wrapped Ethereum tokens, worth approximately $32 million, on September 27.

According to security firm CertiK, the majority of the funds stolen went into one wallet, around 10,000 spWETH (approximately $26 million), which later landed in four other wallets with respective amounts in Ether of 1,750 ETH, 2,050 ETH, 2,900 ETH and 3,730 ETH.

The identity of the victim is not yet confirmed, but some of the information from Arkham Intelligence does indicate this particular compromised wallet is owned by a man named Shixing Mao, one of the founders of F2Pool.

This is among the most visible incidents of an ongoing, growing trend in crypto phishing scams. According to the report from security firm Scam Sniffer, such attacks rose 215% this August of 2024 alone. Altogether, losses for the month were more than $66 million, with one particularly painful attack totaling $55 million in losses from a single wallet.

The increase in phishing cases is coupled with an increase in technological phishing tool developments. In September, another security firm, Blockaid, reported that one of the most notorious phishing tool software, Angel Drainer, had been overhauled into AngelX. In only four days, this new version launched upwards of 300 phishing DApps targeting newer blockchains like The Open Network and Tron.

A Blockaid spokesperson was in fear about the fact that now, with an enhanced control panel, AngelX is in a better position to devise "increasingly sophisticated and targeted phishing schemes, this is really an ominous development in the evolution of crypto-related cyber threats."

China's Former Finance Minister Urges Caution on Cryptocurrency Development

At the recent 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, Lou Jiwei-former finance minister of China calls for caution to be taken regarding cryptocurrency development. Lou pinpointed the possible dangers that digital currencies offer toward financial stability. The former finance minister is concerned about their high volatility and the use of digital currencies in illegal activities.

This speech was given at a time when the landscape of cryptocurrencies is rapidly changing around the world. He alluded to the evolving attitude of the United States toward digital assets, especially after the recent approval of the U.S. Securities and Exchange Commission for spot Bitcoin and Ethereum exchange-traded funds. According to Lou, this policy shift will require close attention from Chinese policy thinkers.

The ex-minister did not mince words and called out the possible adverse impact of cryptocurrencies on the world markets. He underlined that volatility in crypto markets could bring immense financial fragility.

Lou also mentioned the more traditional concerns, instrumentalization of digital means for money laundering and financing terrorism, underlining that all of those risks should be thought over with great care to protect financial systems against possible upsets.

"We should study the international change and policy adjustment because it is a very important topic for the development of the digital economy," Lou emphasized, adding that the risks and innovations around cryptocurrencies should be figured out.

Despite China's blanket ban in 2021 on the mining and trading of Bitcoin, the country still holds strong in the mining landscape of the cryptocurrency. Recent data shows that through mining pools, China controls more than 55% of the Bitcoin mining network, though this seems to gradually shift to the United States.

Zuckerberg's Meta Gamble Pays Off; Now Fourth-Richest Person Globally

Mark Zuckerberg, the founder behind Meta (previously Facebook), leaped into the ranks of the world's fourth-richest person with a net worth of $201 billion. His spectacular rise comes after the strategic shift of Meta into metaverse hardware and artificial intelligence from October 2021.

Meta's stock is making a roaring comeback, trading at around $567 per share, a massive six-fold hike from its November 2022 price of about $88. It has made this dramatic turn in fortune after investors had been initially skeptical of the ambitious foray into developing augmented reality and AI that the company embarked on.

The financial rise by Zuckerberg now places him in the company of Elon Musk, Jeff Bezos, and Bernard Arnault, according to Bloomberg's latest wealth ranking. Half of the world's top 10 most valuable companies, including tech giants Apple, Google, Nvidia, and Microsoft, are now developing their own metaverse hardware.

During a recent Meta Connect event in California, Zuckerberg unveiled two of the company's latest creations: Orion augmented reality glasses and the more affordable Quest 3S VR headset. These Orion glasses boast advanced projectors that can beam a virtual heads-up display onto the real world, a new direction that Meta is taking in its commitment to immersive technology.

Despite high-flying stocks, the company imposed a 20% budget cut on its metaverse division, Reality Labs, and asked for a 20% reduction in departmental expenses by 2026. In fact, Reality Labs was among the most expensive Meta projects, having lost some $60 billion since 2019 and continuing to remain in loss during the second quarter of 2024.

Zuckerberg has made clear that Meta intends to scale its AI business by narrowing the focus of the company and putting more capital investment into AI research. "We've released the first frontier-level open-source AI model, and we continue to see good traction with our Ray-Ban Meta AI glasses," Zuckerberg said on the recent earnings call.

Bitcoin Approaches $66,000 but Bull Market Signals Remain Hidden

The sudden rise in Bitcoin (BTC)'s price has shocked both investors and analysts alike as the leading cryptocurrency closed at its two-month peak on September 28, now hovering close to the $65,500 mark. The same rise coincides with an increase in the S&P 500 index that reached its all-time high on September 26.

The strong economic indicators and the bundle of measures taken to boost the markets and investors' confidence in China have driven the upward surge in the stock market. Despite all these positive signs, a number of metrics indicate that Bitcoin is nowhere near entering what can be called a 'bull market'.

The recent rally of Bitcoin is clouded by investor skepticism since some investors have grown cautious against the possible rejection around the $70,000 level. Some even fear that a looming recession may have adverse impacts on any risk-on markets, including cryptocurrencies.

To investors, Bitcoin remains scarce and sovereign, but the drivers are considerably different from the traditional stock market. Historically, when investors think a recession is in store, their havens of choice have been gold, short-term government bonds, and companies that are dominant in their fields.

Recent data from the Coinbase exchange mobile application shows that despite Bitcoin gaining 21% in price over three weeks, retail investor appetite for digital assets remains less than impressive. The application ranked 385th on September 28 from 482nd on September 14 but still showed that retail interest has room to grow.

It is indeed institutional investors who have been pushing the recent price upsurge in Bitcoin, as seen from a surge in inflows to spot exchange-traded funds. However, data from Chinese markets tells a different story. To gauge the appetite of its investors, it is important to look at the demand for stablecoins in China. The premium on USD Tether (USDT) in China has been under parity for two weeks already, indicating bearish sentiment.

US Spot Bitcoin ETFs Sustain Strong Inflow Streak, Hitting $365 Million

U.S. spot Bitcoin exchange-traded funds (ETFs) experienced substantial net inflows on Thursday, totaling $365.57 million, marking the largest daily inflow since late July.

This increase extends a positive trend that has now lasted for six consecutive days, according to data from SoSoValue.

The inflows were predominantly driven by Ark Invest and 21Shares, which saw inflows of $113.82 million. BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, followed closely with $93.38 million in net inflows.

Fidelity’s FBTC also contributed with $74 million, while Bitwise’s BITB reported $50.38 million. Additional inflows were observed in VanEck’s HODL with $22.10 million, and smaller amounts were recorded across various funds from Valkyrie, Invesco, Franklin Templeton, and Grayscale’s Bitcoin Mini Trust. Notably, Grayscale’s GBTC was the only fund to experience net outflows, losing $7.73 million.

Total trade volume among the twelve funds reached $2.43 billion, the highest since August 23, bringing cumulative net inflows in spot Bitcoin ETFs since their inception to $18.31 billion.

In contrast, spot Ethereum ETFs faced net outflows, with Grayscale’s ETHE reporting a loss of $36 million.

Despite some funds experiencing inflows, including Fidelity’s FETH and BlackRock’s ETHA, the overall trend was negative, contributing to a total net outflow of $581.61 million since their launch in July.

U.S. Judge Refuses to Dismiss Charges Against Tornado Cash Co-Founder

A U.S. federal judge has ruled that Roman Storm, co-founder of the crypto mixer Tornado Cash, will stand trial on money laundering charges, rejecting his motion to dismiss the case.

The trial is scheduled to begin on December 2 in New York and is expected to last approximately two weeks.

District Judge Katherine Polk Failla of the Southern District of New York denied Roman Storm's request to dismiss three charges brought against him by the U.S. Department of Justice during a telephonic conference on September 26, according to DeFi Education Fund's Chief Legal Officer Amanda Tuminelli.

These charges include one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, each carrying a maximum penalty of 20 years in prison.

Storm also faces a charge of operating an unlicensed money transmitting business, which could result in an additional five years of imprisonment.

The indictment, filed last August, alleges that Storm "knowingly facilitated" the laundering of over $1 billion in criminal proceeds through Tornado Cash. The software is designed to enhance privacy for crypto transactions by obscuring the origin and destination of funds.

Storm's defense argued that his role in developing Tornado Cash was protected under the First Amendment. However, Judge Failla stated that the “functional capability” of code does not equate to speech protected by the Constitution, reported by Coindesk.

She emphasized that the government's efforts to combat money laundering and sanction evasion are unrelated to free speech concerns.

Swan Bitcoin Files Lawsuit Against Former Employees Over Alleged Trade Secrets Theft

Swan Bitcoin, a financial services firm focused on Bitcoin, has initiated legal action against several former employees from its mining division, accusing them of stealing proprietary software to establish a competing business.

The lawsuit, filed on September 25, alleges that these ex-employees formed a rival company, Proton Management, and persuaded Tether, a stablecoin issuer and Swan’s funding partner, to sever ties with Swan.

The complaint describes a scheme referred to as “rain and hellfire,” in which the former staff allegedly aimed to usurp Swan’s mining operations and disrupt its business model. Notably, Michael Holmes, Swan’s former Head of Business Development, is identified as the primary orchestrator of this plan, while Raphael Zagury, the former Chief Investment Officer, has taken on the role of CEO at Proton.

Swan claims that it was “blindsided” by a series of resignation letters received on August 8 and 9, followed by a notice from Tether on August 12 indicating that it would shift its mining funding agreement to Proton.

The filing suggests that Tether was intended to provide “legal cover” for this transition, which Swan argues is designed to “irreparably harm” its competitiveness in the market.

The firm had previously launched a managed mining service for institutional investors in May 2024, partnering with Tether with the goal of achieving 100 exahashes of computing power by 2026.

However, in July, Swan’s CEO Cory Klippsten announced potential closure of the mining service due to revenue challenges.

Meme Coin Market Surges as Pump.fun Regains Traction

Meme coins are rallying, with all top 10 meme tokens in the green by huge margins over the past 24 hours. Among them, the viral coin, MOODENG, inspired by a cute baby pygmy hippo in Thailand has risen over 47% in a single day and a whopping 418% in a week.

This frenzy in meme coins comes at a time when the Solana-based token launchpad Pump.fun is showing signs of life after a tough month of having stern competition from a Tron-based rival. On Wednesday, Pump.fun minted 10,309 new meme coins, the most since over a month, signaling a comeback for the platform once used to create more than 20,000 tokens daily at its height.

The broader meme coin market is doing well too. Dogecoin is up 8%, while Shiba Inu is surging an impressive 21%. Rounding out the top five, the larger movers are Solana's Dogwifhat up 5% and Ethereum's Mog Coin jumping 11%.

This resurgence with Pump.fun comes after a period of decline in popularity following the launch of Tron’s SunPump. SunPump briefly surpassed Pump.fun in daily token deployments by August 21, but the dominance was short-lived. Recent data shows SunPump's activity has dropped, with less than 1,000 new tokens launched daily over the past 11 days.

Bitcoin Surges Past $65,000 to Mark Two-month High

Bitcoin (BTC) has surged past the $65,000 mark to touch a two-month-high. The biggest cryptocurrency in the world is currently trading at $65,292, up 2.9% over the past 24 hours.

This has consolidated Bitcoin's recovery from an early September slump, which saw prices as low as $53,000. The new uptick in Bitcoin value follows from the announcement by the Federal Reserve of interest rate cuts and China’s new stimulus policy.

Traditional investors are increasingly gaining exposure to the digital asset through newly introduced Bitcoin ETFs. According to data from Farside Investors, investment in such vehicles has been increasing for five days, with close to half a billion dollars pouring in since Federal Reserve Chair Jerome Powell's announcement of the rate cuts.

For the short sellers, the price increase has resulted in more than $154 million of short positions liquidated across all cryptocurrencies in the last 24 hours, while alone, Bitcoin shorts accounted for nearly $74 million of those liquidations, data from CoinGlass showed.

Attention now shifts to the US presidential election in November. Former President Donald Trump has been extremely vocal in his support of the crypto industry, while Democrat Kamala Harris has only recently started speaking about the topic, reportedly talking in a fundraising speech about plans to support "digital assets."

Bitcoin’s $8 Billion Options Expiry on Friday Could Lead to High Volatility

Bitcoin (BTC) has surpassed the milestone of $65,000 seen since early August. The surge is coming ahead of an $8 billion Bitcoin options expiry due on Friday and is likely to lead to high volatility, analysts say.

Bitcoin is currently trading at $65,425, up 3% in the past 24 hours, according to data from CoinMarketCap. It has rebounded strongly from its tumble in early September, when it traded as low as $53,000.

While the upcoming $8 billion options expiry is significant, it's not unprecedented. The final monthly expiry before this year's Bitcoin halving in April saw a record $14 billion in options contracts.

Friday's expiry remains, however, the second-largest monthly event on record for Deribit, the largest cryptocurrency options exchange, accounting for $5.8 billion of the expiring options.

Luuk Strijers, chief executive of Deribit, estimated that about 20% of such contracts were "in the money" as of Wednesday. However, this distribution has been unequal, with almost 28% of call options and 9% of put options in the money.

However, traders are also watching the release of the personal consumption expenditures (PCE) report from the U.S. Bureau of Labor Statistics, set for Friday. The PCE report, which measures the prices of everyday goods, is expected to show a 0.1% month-over-month increase and a 2.7% year-over-year rise, according to consensus estimates from FactSet.

The recent surge in the cryptocurrency also coincides with broader market trends following the Federal Reserve's decision last week to cut interest rates. The move has helped not only Bitcoin but other digital assets and tokens to surge along with U.S. equities, as investors seem to regain their appetite for riskier assets.

Bloomberg: Robinhood and Revolut Could Issue Their Own Stablecoins

Fintech giants Robinhood and Revolut are reportedly contemplating making their entry into the stablecoin market. This comes in light of new regulations in Europe that are believed to shed the much-needed light upon the sector.

According to a report on Bloomberg, both Robinhood and Revolut are reportedly considering the issuance of their own stablecoins, joining an increasingly attractive market dominated by Tether's USDT. USDT currently boasts a market cap of over $119 billion.

Tether has greatly benefited from the turbulent macroeconomic environment and crypto market volatility over the last couple of years. Banking crises on top of the regulatory crackdowns on U.S. firms contributed to the remarkable growth of USDT, which now controls more than 75% of the whole market.

Tether also announced record profits of $5.2 billion in the first half of 2024. It has also shored up its reserves with a larger hoard of US government bonds. The attractive business model has resulted in more companies joining the stablecoin market, though neither Robinhood nor Revolut has confirmed the reports.

n 2023, MiCA-European Union's Markets in Crypto-Assets regulation-will dramatically change how stablecoins will be created, sold, and traded. The implementation of MiCA was conducted in two phases, and the first one expired on June 30, 2024. During the first phase, the regulations on the reserve requirements, transparency, and caps on the volume of transactions came into play, forcing some exchanges to reconsider their stablecoin offerings.

A second phase, due to take effect from December 30, 2024, extends those rules to crypto-asset service providers, including exchanges, wallets, and other service companies.

The new regulations put tight controls on so-called stablecoins, variously described as "asset-referenced tokens" or "electronic money tokens," and will require daily volume limits of just $200 million to be used in payments.

Mark Cuban Eyes SEC Chair Role in Potential Harris Administration

Billionaire entrepreneur Mark Cuban has made clear he'd still like to helm the U.S. Securities and Exchange Commission should Kamala Harris prevail in November.

An outspoken cryptocurrency industry advocate and backer of Harris's presidential bid, Cuban confirmed that he is open to helming up the financial regulatory body.

The potential Cuban bid for the SEC chair position is a surprise for many, as he has never taken an official position in government. However, previous SEC chairs, including Jay Clayton under the Trump administration, were sourced from the private sector without prior governmental roles.

This tech mogul has often publicly expressed his discontent with the forceful enforcement actions by the current SEC Chair, Gary Gensler, against American crypto firms.

Despite that potential conflict, Cuban has emerged as one of the few crypto industry advocates with close ties to Harris's inner circle, reportedly using his influence to nudge the Democratic nominee toward a more crypto-friendly stance than the current administration.

During a recent speech at The Economic Club of Pittsburgh, Harris vowed to keep America "dominant in AI and quantum computing, blockchain and other emerging technologies." Following the speech, Cuban told a Fox News reporter that if he were to join the Harris administration, it would be to replace Gary Gensler as SEC chair.

During a donor event in Manhattan, Harris finally mentioned her stance on the crypto industry, stating that she would "encourage innovative technologies like AI and digital assets while protecting our consumers and investors."

Ethena Set to Launch UStb Stablecoin Backed by BlackRock’s Tokenized Fund

Ethena has announced plans to introduce a new stablecoin, UStb, which will be backed by BlackRock's tokenized U.S. Treasuries fund, known as BUIDL.

This initiative comes as Ethena's existing decentralized synthetic dollar, USDe, has rapidly ascended to become the fifth-largest stablecoin, boasting a circulating supply of $2.6 billion.

UStb is designed to operate similarly to conventional stablecoins, with its reserves expected to be invested in BlackRock’s USD Institutional Digital Liquidity Fund, which is tokenized on the Ethereum blockchain.

BlackRock’s BUIDL fund, which has accumulated over $522 million in assets since its launch in March, invests primarily in U.S. dollars, short-term Treasury bills, and repurchase agreements.

Securitize, a platform specializing in real-world asset tokenization, will assist in the launch of UStb. The broader market for tokenized government securities has reached over $2 billion, as reported by asset management firm 21.co.

Distinct from USDe, UStb will serve as a wholly independent product, providing a different risk profile. USDe utilizes derivative hedging strategies that rely on various cryptocurrencies as collateral, creating exposure to market volatility and counterparty risks.

During a recent market downturn, USDe experienced nearly $100 million in redemptions and briefly dipped to $0.997 before stabilizing.

Ethena has indicated that UStb may enhance USDe's resilience during challenging market conditions. The governance of Ethena may decide to reallocate backing assets from USDe to UStb during negative funding periods to mitigate risks.

Additionally, UStb is expected to be utilized as margin collateral on centralized exchanges, such as Bybit and Bitget, with which Ethena has partnered.

In February, Ethena Labs raised $14 million in a strategic funding round, positioning the company at a $300 million valuation.

TON Blockchain Braces for Surge in User Activity as Hamster Kombat Expands

The Open Network (TON) blockchain is gearing up for a surge in activity as the Web3 game Hamster Kombat expands its user base and prepares for the minting of its new HMSTR tokens.

On September 25, a notice was issued via a Telegram channel dedicated to TON validators, urging them to brace for an anticipated influx of users.

Hamster Kombat, which currently boasts 100 million monthly active users, has become one of the fastest-growing applications in history, recently surpassing notable apps like Pokémon GO and Meta’s Threads.

The game developers have indicated that they expect millions more to join as the HMSTR token minting commences.

In light of this anticipated demand, TON validators have been instructed to ensure high availability and monitor their systems closely. They are encouraged to join the “TON Status” Telegram channel for real-time support from September 26 to 29.

The communication emphasized that validators must be prepared to implement urgent fixes or allocate resources within one hour if needed.

The announcement highlighted the importance of validator performance, stating, “The quality of validators directly affects the quality of the blockchain.”

This call for action comes as the Hamster Kombat team also revealed plans for Q4 2024 and early 2025, which include integrating external payment systems and launching new games within the Hamster ecosystem.

Additionally, the game has taken measures against cheating, reportedly banning 2.3 million users.

The rapid growth of Hamster Kombat reflects a broader trend in the Web3 gaming space, where innovative approaches are reshaping the play-to-earn model, according to industry experts.

Taurus Partners with Aktionariat for Tokenization of Equity Shares

Swiss blockchain firms Taurus SA and Aktionariat AG have announced a new partnership aimed at enhancing the tokenization of equity shares.

Under this agreement, Taurus will provide digital asset services for selected Ethereum-based tokenized shares issued by Aktionariat, while Aktionariat will facilitate a pathway for client companies to list their shares on the Taurus Digital eXchange (TDX).

The collaboration is expected to launch in November. The initiative aims to increase liquidity for small and medium-sized enterprises (SMEs) by leveraging Taurus' institutional-grade trading technology and Aktionariat's expertise in tokenizing Swiss companies’ equity.

This partnership is positioned to connect these enterprises with a wider network of banks, professional investors, and retail clients.

Security tokens, which represent fractions of real-world assets, including equity, real estate, and bonds, will be a key focus of this collaboration. These tokens allow owners to hold stakes in the underlying assets, although legal uncertainties regarding their status remain.

RealUnit, a crypto-focused investment firm, is among the first to utilize the new platform, having tokenized its shares with Aktionariat in April 2022 on the Ethereum blockchain.

Investors will have the option to choose between traditional bearer shares and tokenized shares, marking a notable development in Switzerland's financial landscape.

Taurus aims to digitize private markets, making private equity investments more accessible. The firm envisions that purchasing a private security could eventually become as straightforward as buying a book online, regardless of the asset type.

Experts Weigh In on Coinbase-BlackRock “Paper Bitcoin” Spot ETF Rumors

Coinbase, America's largest crypto exchange, and BlackRock, the world's premier asset manager, have found themselves rooted in a new conspiracy theory. Skeptics are spreading unsubstantiated rumors that Coinbase may not actually be buying the real Bitcoin requested by ETF funds but instead issues what they call "paper Bitcoin" or IOUs.

These rumors spread far enough on social media platforms to warrant a response from Coinbase CEO Brian Armstrong. Armstrong waved off the concerns, saying: "All ETF mints and burns we process ultimately settle on-chain."

But conspiracy theorists got new ammo when BlackRock filed an amendment to its ETF registration with the SEC that requires Coinbase to release Bitcoin to the asset manager within 12 hours of notice when customers buy shares of its Bitcoin ETF product.

Other vocal critics online have gone so far as to say that BlackRock can "take as much Bitcoin as they want from Coinbase" through transactions recorded off-chain.

However, Bloomberg ETF analyst Eric Balchunas said those are unfounded conspiracy theories. "This isn't like FTX, where you just throw up an exchange out of nowhere, and some buffoon is running it from a Bahama penthouse," he said. "BlackRock's a serious company that has dozens of lawyers. They're not going to blow their well-earned reputation, let alone get sued by all those investors.

To further debunk these rumors, Balchunas said that, after speaking to BlackRock, he was able to confirm the asset manager operates its own blockchain node and routinely verifies Bitcoin balances from their wallet addresses on Coinbase Prime.

China Reveals Massive Stimulus Package, Increased Liquidity Could Boost Crypto Prices

The People's Bank of China just announced a massive stimulus package that is reverberating through global markets. According to the South China Morning Post, the "policy bazooka" follows a rate cut from the US Federal Reserve.

Measures by the Chinese central bank also include a dramatic cut to the bank reserve requirements, as well as a 50-basis-point cut to the existing mortgage rates. The motive has been to infuse more liquidity into the economy and firm up the sectors that have been performing weakly, especially in housing and consumer spending.

No sooner were the reports out than cryptocurrency enthusiasts started speculating at the possible implications of the monetary easing in China for digital assets. Su Zhu, the founder of the now-defunct Three Arrows Capital, proclaimed that the "China stimulus cycle is kicking in," insinuating that crypto prices could benefit from such a move.

Economist Lyn Alden suggests that Bitcoin's price is historically closely tied to global liquidity, which would indicate the Chinese stimulus could support cryptocurrency valuations into the future.

Beyond the issue of cryptocurrencies, the Chinese government has been working to shore up its economy in other ways, including an 800 billion yuan infusion to prop up Chinese stocks and a plan to create a stock market stabilization fund. These moves have managed to push the value of the CSI 300 index up 7% in the last week.

The timing of this Chinese stimulus package, coming so close to the heels of the Federal Reserve's first rate cut in four years, has set up an extraordinary global economic environment. Classically, these conditions of increased liquidity and lower interest rates usually signal great times for risk assets such as stocks and cryptocurrencies.

XProtocol Announces XForge, Ethereum DePIN Smartphone for Blockchain Gaming

XProtocol announced Wednesday its plans to release the XForge, an Android-powered gaming smartphone that has been referred to as the world's first "DePIN phone," slated to hit the market later this year.

Competitively priced at $299, XForge features 256GB of storage, 12GB of RAM, and a strong Snapdragon 8 Gen 2 processor. But in terms of differentiation, it's how this device connects with the layer-3 network that XProtocol built atop Coinbase's Base layer-2 scaling solution for Ethereum.

The company announced plans to migrate further onto its independent layer-1 network due to a need for "greater autonomy and scalability." An ambitious roadmap underlines a commitment to push the boundaries of blockchain integration into everyday devices.

DePIN stands for decentralized physical infrastructure networks, meaning blockchain-powered networks of physical hardware. XProtocol foresees a future in which the network is powered not just by software running on XForge handsets but also by dedicated Xardian Nodes.

XProtocol's announcement comes after an incursion into the crypto smartphone market by Solana Mobile. After launching its first crypto smartphone, the Saga, last year, Solana Mobile recently announced its second-generation Seeker smartphone that promises greater functionality at a more affordable price than its predecessor, from $450 for early pre-orders.

Hacker of Indian Exchange WazirX Nearly Fully Laundered Funds

The mastermind of India's biggest crypto heist has almost fully washed the tokens stolen from the platform. The July hack resulted in WazirX, once considered one of India's leading cryptocurrency exchanges, losing more than $230 million in funds.

According to on-chain data, the wallet of the hacker, which held the pilfered funds from the start, now has a mere $6 million in Ethereum. Blockchain analytics firm Arkham previously traced these funds and noticed that the stolen tokens have been transferred around new wallets and then transferred through Tornado Cash, one of the notorious privacy services.

This laundering operation has increased manifold in the last couple of months. In August alone, close to $50 million in tokens were transferred into Tornado Cash. However, this illegal activity increased considerably in September. The latest occurred on early Wednesday, transferring 3,792 ETH worth roughly $10 million.

Tornado Cash lets users swap cryptocurrencies across blockchains and anonymizes wallet addresses in question. The Tornado Cash saga took a sharp turn in May when a Dutch court found one of its developers, Alexey Pertsev, guilty of money laundering and gave him a prison sentence of over five years.

The hack that really set this chain of events in top gear was back in July, where one of the multisig wallets of WazirX got breached. The attack is reportedly said to siphon off more than $100 million in SHIB tokens and $52 million in Ethereum among other assets. That staggering loss was more than 45% of the total reserves the exchange reported back in June 2024.