Autor Cointelegraph By Jesse Coghlan

Nifty News: Christie’s NFT expert to lead CryptoPunks, fake heiress launches NFT collection

Noah Davis, the non-fungible token (NFT) specialist at auction house Christie’s, has said he’s leaving the position in July to take up a post as brand lead for the CryptoPunks NFT collection with Yuga Labs.Announcing the move on June 19 in a Twitter thread, Davis looked to quash any anxieties holders had regarding the future of one of the oldest NFT projects, saying he “will not f*ck with the punks.”What does that mean? It means no Punks on lunchboxes or cringe TV shows/shitty movies. It means no arbitrary rushed utility or thoughtless airdrops. It means if you love your Punk(s) because they are what they are (just Punks) then you and I see eye to eye…— Noah (@NonFungibleNoah) June 19, 2022He invited CryptoPunk owners to schedule a talk with him about the project’s future at the NFT NYC event and said the new position wouldn’t take away from his own NFT project.Davis is responsible for the record-breaking auction of Beeple’s “Everydays: The First 5000 Days” NFT, which sold for over $69 million in March 2021.Yuga Labs acquired the intellectual property of the CryptoPunks collection from Larva Labs in March, saying it would turn over full commercial rights to the owners, a promise yet to be realized.But, Yuga Labs co-founder Wylie Aronow aka “Gargamel” addressed the holdup in a series of tweets on June 19, writing it was “too significant to rush” and that new terms “will be rolling out in the next couple of weeks.”With the announcement of Davis’ move and the new terms set to take effect soon, some are alleging insiders had prior knowledge of the information citing the surging sales volume of the collection.Ok so no one’s going to address the obvious insider trading that happened in the last 48 hours?Chart: @punk9059 https://t.co/56s56D5Nw1 pic.twitter.com/beNkWbAc2Y— Chainleft (@ChainLeftist) June 19, 2022

According to OpenSea, 39 sales of the CryptoPunks collection have taken place since the announcement, with 101 sales in total on June 19, up from the only 19 sold the day prior, on June 18.Convicted scammer “reinvents” herself with NFTsConvicted con-artist and fraudster Anna Sorokin, who from 2013 to 2017 pretended to be the wealthy German heiress “Anna Delvey” to defraud acquaintances and business of over $275,000, has started an NFT collection.Titled “Reinventing Anna,” the collection features 2,000 NFTs for 0.1 Ethereum (ETH) each, or about $110. It is marketed as a way for “fans to interact with Anna” and access private “ask-me-anything’s” with Sorokin.Related: NFT trading volume surges amid market and floor price crashThe collection will feature 20 “gold edition cards,” which grant owners the possibility of a one-on-one phone call or in-person visit with the so-called “renowned socialite.”The collection’s name is a play on the “Inventing Anna” Netflix drama miniseries released earlier this year, the subject of which is inspired by Sorokin’s story.“I see this first drop as an opportunity to directly connect with my audience and take charge of the narrative that’s been largely outside of my control,” Sorokin wrote in an Instagram post regarding the collection.It’s unknown how NFT holders will be able to visit her in person, however. Since March 2021, Sorokin has been held by United States Immigration and Customs Enforcement for overstaying her visa and faces deportation to Germany.Duppies followers targeted in phishing scamDuppies, an upcoming Solana NFT project from the same team as the popular “DeGods” collection, had its Twitter account hacked on June 18, with attackers tweeting a link to a “stealth mint” of the NFTs.The link was a phishing website, and users who connected their wallets and attempted to mint had their wallets drained of all funds. One Twitter user wrote they lost 650 Solana (SOL) worth around $18,850 from the attack.In Twitter Spaces after the attack, the creator of the upcoming collection known as “Frank” joined security auditor “Code Monkey” to explain how the attack happened.The auditor said the attacker likely accessed the Duppies Twitter account in a targeted SIM swap attack.The attack works by scammers contacting the phone provider of the mobile number holder and trick the carrier into swapping the mobile number to a SIM card in their control. From there, the attacker can bypass any two-factor authentication on the account and gain access.More Nifty News:Watchmaker TAG Heuer has released a watch that can pair with a smartphone to show NFTs on the watch face and also connect to the blockchain to verify the NFT is owned by the wearer.Despite warnings from the nation’s authorities, the number of NFT and digital collectible platforms in China has seen a five times increase since February 2022, going from just over 100 to over 500, according to local state-owned media.

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President of Panama shoots down crypto bill citing FATF guidelines

Panama’s President Laurentino Cortizo has partially vetoed Bill No. 697 dubbed the “crypto bill” saying it requires more work to better fit Panama’s financial regulations.President Cortizo previously warned in May he wouldn’t sign the bill unless it included additional Anti-Money Laundering rules after Panama’s National Assembly passed the crypto bill in late April 2022.Local media outlet La Prenda obtained a copy of the 32-page veto, reporting the President wrote it’s “imperative” the cryptocurrency laws conform to new regulations recommended by the Financial Action Task Force (FATF) outlining “fiscal transparency and prevention of money laundering”.President Cortizo has previously described the legislation as an “innovative law”, and indicated approval of certain aspects of the bill, but has said possible illicit uses of cryptocurrencies needed addressing.Congressman Gabriel Silva who helped introduce the bill in September 2021 tweeted on June 16 that (according to a translation) the veto was “a lost opportunity to generate jobs, attract investment and incorporate technology and innovation in the public sector.” El Presidente acaba de vetar parcialmente el proyecto de Ley de CryptoUna oportunidad perdida para generar empleos, atrae inversión e incorporar tecnología e innovación en el sector públicoEl país merece más oportunidades y también inclusión financiera (1/2)— Gabriel Silva (@gabrielsilva8_7) June 16, 2022“The country deserves more opportunities and financial inclusion,” Silva added, saying Congress will study the veto to make corrections which will then be passed through to debates.Related: Top 30 Panama Bank is ‘Bitcoin friendly,’ welcomes crypto servicesIf the bill is eventually signed it will make Panama the second Central American country to regulate the spending of cryptocurrencies. The nearby country of El Salvador was famously the first country to make Bitcoin (BTC) a legal tender.Unlike El Salvador however, Panama’s bill covers other cryptocurrencies besides Bitcoin and wouldn’t require local businesses to accept digital assets.According to the bill Panamanians “may freely agree on the use of crypto assets, including without limitation Bitcoin and Ethereum (ETH)” as an alternative payment for “any civil or commercial operation”.The bill would also cover the issuance of digital value and regulate the tokenization of such things as precious metals. A digitization of identity using blockchain or distributed ledger technology would also be researched by the government’s innovation authority.

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Inverse Finance exploited again for $1.2M in flashloan oracle attack

Just two months after losing $15.6 million in a price oracle manipulation exploit, Inverse Finance has again been hit with a flashloan exploit that saw the attackers make off with $1.26 million in Tether (USDT) and Wrapped Bitcoin (WBTC).Inverse Finance is an Ethereum based decentralized finance (DeFi) protocol and a flashloan is a type of crypto loan that is usually borrowed and returned within a single transaction. Oracles report outside pricing information.The latest exploit worked by using a flashloan to manipulate the price oracle for a liquidity provider (LP) token used by the protocol’s money market application. This allowed the attacker to borrow a larger amount of the protocol’s stablecoin DOLA than the amount of collateral they posted, letting them pocket the difference.The attack comes just over two months after a similar April 2 exploit which saw attackers artificially manipulate collateralized token prices through a price oracle to drain funds using the inflated prices.In response to the attack, Inverse Finance temporarily paused borrowing and removed its DOLA stablecoin from the money market while it investigated the incident, saying no user funds were at risk.Inverse has temporarily paused borrows following an incident this morning where DOLA was removed from our money market, Frontier. We are investigating the incident however no user funds were taken or were at risk. We are investigating and will provide more details soon.— Inverse+ (@InverseFinance) June 16, 2022It later confirmed that only the attacker’s deposited collateral was affected in the incident and only incurred a debt to itself due to the stolen DOLA. It encouraged the attacker to return the funds in return for a “generous bounty”.Related: Attackers loot $5M from Osmosis in LP exploit, $2M returned soon afterIn total, the attacker’s gained 99,976 USDT and 53.2 WBTC from the attack, swapping them to ETH before sending it all through the cryptocurrency mixer Tornado Cash, attempting to obfuscate the ill-gotten gains.The previous attack in April saw attackers make off with $15.6 million in ETH, WBTC, YFI and DOLA.DeFi marketplace Deus Finance suffered from a similar exploit in March, with attackers manipulating a price pairing within an oracle leading to a gain of 200,000 Dai (DAI) and 1101.8 ETH worth over $3 million at the time.Beanstalk Farms, a credit based stablecoin protocol lost all $182 million worth of collateral in a flash loan attack caused by two malicious governance proposals which in the end drained all funds from the protocol. How the latest attack went downBlockchain security firm BlockSec analyzed that the attacker borrowed 27,000 WBTC in a flashloan swapping a small amount to the LP token used to post collateral in Inverse Finance so users can borrow crypto assets.The remaining WBTC was swapped to USDT, causing the price of the attacker’s collateralized LP token to rise significantly in the eyes of the price oracle. With the value of these LP tokens now worth far more due to the price rise, the attacker borrowed a larger amount than usual of the DOLA stablecoin.The value of the DOLA was worth much more than the deposited collateral, so the attacker swapped the DOLA to USDT, and the earlier WBTC to USDT swap was reversed to repay the original flashloan.

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BitMEX co-founder Benjamin Delo avoids jail, receives 30 months probation

Benjamin Delo the co-founder of cryptocurrency exchange BitMEX has been sentenced to 30 months probation for violating the Bank Secrecy Act (BSA), which is an anti-money laundering law.The sentence, handed down at a federal court in New York on June 15th, follows his guilty plea to charges in February of “willfully failing to establish, implement and maintain an Anti-Money Laundering (AML) program” in his role at BitMEX.Prosecutors had argued Delo should serve a year in prison or at least receive a two-year probation along with six months of home detention, as was given to former CEO Arthur Hayes in May.For Delo, his lesser sentence closes the legal saga which started in October 2020 which also saw co-founders Hayes and Samuel Reed along with BitMEX’s first official employee Gregory (Greg) Dwyer charged with similar violations.Judge John Koeltl called Delo’s violations “very serious” and said that heo knew BitMEX was breaking U.S. laws by not implementing an AML and know your customer (KYC) system.Judge Koeltl noted however that the exchange did later take steps to rectify the issue and become compliant.“When I look back, I see a fundamental failure to address a flaw in our systems,” Delo told the court, adding he deeply regrets the actions that brought him in contact with the justice system and vowed that it would be his last brush with it.A citizen of the United Kingdom residing in Hong Kong, Judge Koeltl ordered Delo be allowed to serve his probationary sentence in Hong Kong. Related: The CFTC’s action against Gemini is bad news for Bitcoin ETFsJudge Koeltl also took into consideration the fact that Delo paid a $10 million fine settling a court order from May in a civil case brought by the Commodity Futures Trading Commission (CFTC) for violating aspects of the Commodity Exchange Act.A spokesperson for Delo’s legal team said after the sentencing hearing they’re pleased the court rejected “the government’s cynical attempt to exaggerate the seriousness of the Bank Secrecy Act charge in this case.”Delo’s lawyers said he intends to soon leave the U.S. for Hong Kong.Meanwhile, Australian-born former BitMEX head of business development Greg Dwyer, who currently resides in Bermua, is in talks with the New York federal court to extend a deadline for filing pre-trial documentation according to the Sydney Morning Herald.A letter sent to the court by Dwyer’s lawyer said “the parties continue to engage in discussions regarding a possible resolution to the matter.”

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71% of high net worth individuals have invested in digital assets: Survey

High net worth individuals (HNWI) have embraced cryptocurrencies and other digital assets, with 71% of wealthy individuals investing in digital assets according to a new survey.Technology consulting company Capgemini released its 2022 World Wealth Report on June 14. It polled 2,973 global HNWIs, with 54% reporting a wealth band ranging from $1 million to $30 million and 46% reporting wealth of $30 million and over.The survey asked about investment preferences for emerging asset classes such as digital assets, classifying them as cryptocurrencies, related exchange-traded funds (ETFs), non-fungible tokens (NFTs) and metaverse-related products.Of the roughly one in seven wealthy individuals investing in digital assets, the highest concentration were under 40. More than nine in ten in this age group have invested in digital assets. The younger cohort said cryptocurrencies are their favorite investment, with crypto ETFs and metaverse products also highly desired.Crypto does not make up the majority of portfolios however and on average, HNWIs have only allocated around 14% into “alternative investments” which includes crypto alongside commodities, currencies private equity and hedge funds. Capgemini observed, however, the wealth management industry is seeing an influx of investments into digital assets and this has “increased the demand for educational capabilities.” Nilesh Vaidya, the firm’s head of retail wealth management said:“The influx of new investment avenues such as sustainable investing and digital assets is having a crucial impact on the wealth management industry. Wealth management firms must prioritize providing timely education around this trend to retain their customers.”Some firms are already clued into this trend and are wanting the first-mover advantage into this niche sector by launching investment products targeted at the demographic.Related: Wealth report: As old money procrastinates, young money goes cryptoInvestment bank Morgan Stanley introduced exposure to Bitcoin (BTC) for its millionaire clientele in March 2021 with only those holding $2 million or more in capital able to invest.Private banking clients for BBVA Switzerland were also given access to crypto trading and custody services, along with a similar offering from Wells Fargo in 2021.The report comes after earlier research by Accenture which revealed 52% of wealthy investors in Asia held some form of a digital asset during the first quarter of 2022 making up, on average, 7% of the surveyed investors’ portfolios.Similarly, Accenture also found that wealth management firms have been slow to adopt investment products with cryptocurrency or digital asset exposure, with a majority saying they have no plans to offer related services.

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