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Cryptocurrency News: International Cooperation and Resiliency

Hello, my wonderful readers! Today, let us talk about Cryptocurrency News! Both day traders and long-term institutional investors are still very interested in the cryptocurrency market as Bitcoin and Ethereum fall to 6-month the roundup for this month is as follows:

The Federal Reserve | Cryptocurrency News

In their eagerly awaited paper, the Federal Reserve declined to either endorse or abandon the concept of a Central Bank Digital Currency (CBDC). The Federal Reserve commented in the paper about the need for any proposed CBDC system to be extremely resilient to cybersecurity threats. Supporting the dollar’s international role and enhancing cross-border payments are two advantages of adopting a CBDC; however, the latter requires significant international cooperation.

Cybersecurity With Cryptocurrencies | Cryptocurrency News

This month’s cybersecurity news in the cryptocurrency space included Crypto.com’s admission that login problems users had been experiencing resulted from a $30 million hack. A cryptocurrency tumbler, which is a fund that mixes “tainted” funds with other funds to make the trail untraceable, was used to steal 4,836.26 ETH (roughly $15 million) and 443.93 BTC (roughly $18 million) from the exchange.

In response to the breach, Crypto.com unveiled a brand-new “Worldwide Account Protection Programme” to protect users against user compromises up to a $250k value. This may herald a new era in which a private user will no longer lose all of their funds in the event of a platform backend compromise, and the larger centralized exchanges are maturing to the point where they can absorb the costs of any compromise through the effective use of segregation and protocol validation on their hot wallets.

Cryptocurrency YouTubers were Compromised | Cryptocurrency News

On January 23, hackers compromised several well-known cryptocurrency YouTubers. The hacking group immediately posted numerous videos on the compromised accounts instructing users to send their money to the attackers’ BNB address. Fortunately, the videos were discovered fairly quickly, and when this article was written, the wallet only contained about $850.

Chainalysis estimates that in 2021, money laundering through cryptocurrencies increased by about 30% to $8.6 billion. This is not unexpected given the intense interest shown by both legitimate and illegitimate investors in cryptocurrencies throughout 2021. The report revealed an intriguing fact: scammers frequently send their stolen cryptocurrency to wallets on centralized exchanges. This emphasizes the need for exchanges to take additional steps to identify their customers (using procedures like KYC) accurately and employ tools like machine learning to identify transaction anomalies.

Active participants stop cryptocurrency scams! | Cryptocurrency News

To stop cryptocurrency scams, authorities and individuals employ various strategies and tactics:

Regulatory Frameworks: 

Governments and regulatory bodies worldwide establish and enforce robust regulations and laws to monitor and control cryptocurrency activities. These frameworks mandate exchanges and projects to comply with AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures.

Education and Awareness: 

Informing the public about the risks associated with cryptocurrency investments is essential. Educational initiatives and awareness campaigns help potential investors recognize red flags and make informed decisions.

Security Measures: 

Cryptocurrency users should adopt stringent security practices, including using hardware wallets, enabling two-factor authentication, and keeping private keys offline. Exchange platforms should regularly update and enhance their security protocols.

Whistleblower Programs: 

Governments and organizations can establish whistleblower programs to encourage individuals with inside information to report fraudulent activities. This incentivizes individuals to help stop scams.

Law Enforcement and Prosecution: 

Law enforcement agencies work to identify and apprehend cryptocurrency scammers. Scammers get prosecuted after being caught. It sets an example and deters others from fraud.

Blockchain Analysis: 

Blockchain analytics tools help track and trace transactions, making it difficult for scammers to launder money. This approach assists authorities in identifying and stopping fraudulent activities.

Community Policing: 

Cryptocurrency communities self-regulate to some extent. Forums, social media platforms, and online communities often expose scams and warn others, leading to the rapid shutdown of fraudulent projects.

Exchange Due Diligence: 

Cryptocurrency exchanges must conduct thorough due diligence on new token listings and projects. This helps filter out potential scams before they gain a foothold in the market.

Report and Response: 

Reporting scams to the appropriate authorities is crucial. Quick reporting can lead to a swifter response and more effective intervention.

International Collaboration: 

Cryptocurrency scams are often transnational. International cooperation between governments and agencies is essential to track and apprehend scammers.

Decentralized Finance (DeFi) Audits: 

With the rise of DeFi, third-party audits and security assessments of smart contracts and protocols have become vital to prevent vulnerabilities and scams within the decentralized ecosystem.

Risk Assessment Tools: 

Investors and traders can utilize risk assessment tools and platforms that analyze projects and warn of potential scams or high-risk investments.

Stopping cryptocurrency scams requires a multi-faceted approach involving governments, regulatory bodies, law enforcement, cryptocurrency communities, and individual vigilance. Combining these efforts makes it possible to mitigate the risks associated with cryptocurrency investments and protect the public from fraudulent schemes.

Conclusion | Cryptocurrency News

The prevention and mitigation of cryptocurrency scams necessitate a collaborative and multifaceted approach. Regulatory bodies, governments, law enforcement agencies, and the cryptocurrency community actively engage in efforts to stop scams. By enforcing robust regulations, increasing public awareness, strengthening security measures, and prosecuting wrongdoers, we can significantly reduce the prevalence of cryptocurrency scams. Additionally, adopting advanced technologies such as blockchain analytics and decentralized finance audits, coupled with international cooperation, further enhances our ability to combat fraudulent activities. Individuals must remain vigilant, exercise due diligence, and report suspicious activities. These active measures collectively contribute to a safer and more secure cryptocurrency ecosystem.

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David Scott
David Scott
Digital Marketing Specialist .
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