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Chainalysis Reports more than a billion Dollars in Crypto stealing by two groups of hackers

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Chainalysis Reports more than a billion Dollars in Crypto stealing by two groups of hackers

Analysis firm Blockchain Chainalysis has revealed in its most recent report that only two groups benefited from the majority of cryptocurrency attacks that have occurred to date.

According to the new report shared with The Wall Street Journal, the two piracy groups could have obtained $ 1 billion in cryptocurrencies. The firm also indicates that it is estimated that since the creation of Bitcoin, more than $ 17 billion in cryptocurrencies have been stolen.

Chainalysis calls the two piracy entities Alpha and Beta, as the groups responsible after the attacks. In addition, the WSJ quotes Philip Gradwell, chief economist at Chainalysis, saying that the two organizations are probably still active.

At the same time, it revealed that tracking the funds that were stolen in publicly reported hacks took three months to complete. Chainalysis pointed out that his analysis could be incorrect. The Blockchain analysis platform could not identify the two hacking groups either.

According to the report called Crypto Crime Report, “piracy dwarfs all other forms of cryptocurrencies, and is dominated by two prominent groups of professional piracy.”

“Together, these two groups are responsible for stealing around $ 1 billion to date, at least 60% of all publicly reported attacks.”

The report notes that both Alpha and Beta did their best to shuffle the coins they stole, apparently in an attempt to obfuscate the source of the funds. For the most part, this involved a large number of transactions that moved stolen funds from one address to another, the report said.

“Hackers often move stolen funds through a complex variety of wallets and exchanges in an attempt to hide the criminal origins of the funds. On average, hackers move funds at least 5,000 times. ”

The two groups have different ways of handling stolen cryptocurrencies. While Alpha begins to shuffle the funds immediately, Beta is more patient and can sometimes wait up to a year and a half. In one case, it is said that Beta has cashed more than $ 32 million at one time.

The report states that, supposedly, Alpha is a “giant organization, tightly controlled, at least partly driven by non-monetary objectives,” while Beta is a “smaller and less organized organization” strongly sanctioned and very money-focused.

Both groups have succeeded in channeling much of their profits to change it to fiat money, Chainalysis writes, since more than half of all pirated funds were converted in less than four months, and approximately three quarters of the pirated funds were They retired in six months. This was done in large part through the use of regular exchanges, according to the report, which Chainalysis believes was possible because exchanges and enforcement have had a limited ability to track pirated funds.

The report notes that Alpha converts approximately 75 percent of funds within a month on average, while Beta charges 50 percent just a few days after its self-imposed waiting period.

Last year more than 7 billion were lost in cryptocurrencies through exchange hacks. This was an increase of almost triple the previous year, which lost approximately $ 266 million due to security breaches.

Recently in a forum of the popular P2P exchange Localbitcoins, a link for phishing was posted, but the attack was stopped at that moment with only five affected wallets.

In addition, recently it was learned that $ 16 million was stolen in Ethereum (ETH) and ERC20 tokens were stolen in mid-January from the Cryptopia exchange in New Zealand, as the most recent attacks occurred in the crypto space.

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Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price

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Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price

Time and again, several members of the XRP community have opined that the massive dump of the crypto asset in the market has impacted on its price, negatively. Now, there are speculations for another dip in XRP’s price. The latter is after Whale Alert informed on September 7, 2019, that 100 million XRP tokens have been transferred to Jed McCaleb, Ripple’s co-founder. 

Ripple Sends XRP Worth About $26 Million to McCaleb’s Wallet

According to Whale Alert, Ripple transferred 100 million XRP valued at $26,322,440 to Jed McCaleb’s wallet. The transfer has led to the sentiment in the crypto space that XRP might tank below its $0.262 price today. Also, the opinion is due to McCaleb’s reputation for dumping huge amounts of XRP in the market.

McCaleb is Ripple’s co-founder, and in 2014, Ripple transferred 9 billion XRP to him as his share for founding the company in 2012. However, the blockchain company entered a seven-year agreement with McCaleb to control how much XRP he can sell in the market yearly.

Per the agreement, the co-founder could sell $10,000 worth of XRP per week in the first year, $20,000 per week in the second, third, and fourth years, and “750 million XRP per year for the fifth and sixth years.” In the same vein, he could choose to dump 1 billion XRP yearly for the seventh year, and 2 billion XRP yearly after the seventh year.

McCaleb’s Dump of XRP Impacts of Asset’s Market Price

Given that this is the fifth year since the agreement was made, McCaleb can choose to dump thousands of XRP tokens daily. In 2014 when he announced his plans to sell a significant part of his XRP holdings, the value of the asset declined by 40%. As such, the continuous dump of the asset has also been pointed out as one of the reasons why it is not spiking like other top cryptocurrencies.

Asides from being reputable in the XRP community, McCaleb is also a name associated with Mt Gox, one of the first cryptocurrency exchanges. He founded the platform and sold it off years before its hack. Similarly, McCaleb is the creator of Stellar (XLM), the 11th largest cryptocurrency by market cap.

Nonetheless, the crypto community has aired its views about the potential for McCaleb to release another share of XRP to the market. Crypto BitLord, for instance, said: “Wow. Another cool $26M Jed can unload at market. This shits out of control.” Another remarked that: “know, right?! Private businesses shouldn’t be allowed to exist. The name “Jed” should be banned.”

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Whale Moves $1 Billion Worth of Bitcoins, Pays Only $600 as Transaction Fee

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Whale Moves $1 Billion Worth of Bitcoins, Pays Only $600 as Transaction Fee

Bitcoin’s price may have stabilized for the past few days, but it seems the whales are up to something. On September 6, 2019, Whale Alert, a platform that monitors large crypto transfers informed that an individual has moved $1 billion worth of Bitcoin to a single wallet. The massive transfer has caused a wave of anxiety in the market that a dump could be pending.

94,504 BTC is Moved to an Unknown Wallet

According to Whale Alert, 94,504 BTC valued at $1,018,147,922 was transferred today, from an unknown wallet to another wallet. A review of the wallet that made the transfer showed that its funds were accumulated before being moved to the recipient.

Hours after the massive transfer, the crypto community is still on its toes trying to ascertain what the individual is up to. Comments made on Whales Alert’s tweet threw more light on the transaction. Alex Krüger, for instance, remarked that this is the largest Bitcoin transfer from a non-exchange platform, and the funds could be on the move.

Crypto Community Opines Bakkt Customers are Moving Funds 

Other members of the community opined that the transfers could’ve been made by clients transferring their Bitcoins to Bakkt, a Bitcoin futures platform. In their opinion, Bakkt had announced earlier that it would allow customers to move their Bitcoin to its cold storage starting from today, September 6, 2019. As such, the recent whale transfers and the said event could be closely related.

There were, however, others in the space who found the thought of over $1 billion worth of Bitcoin being sent to a wrong address hilarious. If that were the case, it would’ve meant the individual behind the transfer had just lost their entire holdings since Bitcoin transactions are irreversible. 

$600 Paid as Fee for Billion Dollar Transaction

These aside, it was also noted that only $600 (0.06 BTC) was paid as the transaction fee. Given that a billion was sent but it only attracted a few dollars in fees, several members of the space pointed out how remarkable that was.

On the other hand, the sender seems to be covering their footprint since efforts to track the payments from the sending wallets is proving a challenge. A crypto user, for instance, said:

“I don’t know how many of these “mixing wallets” there are. Every single tx I follow leads to a new one. Someones trying to hide these coins, that’s for sure. All of them look like they are still active today.”

Nonetheless, these wallets will still be monitored closely in a bid to ascertain if the sender’s motive is to dump the BTC in the market, which could tank the asset’s price. 

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