Autor Cointelegraph By Stephen Katte

Ethereum Merge to 'swamp' other coins with miners — Mining CEO

The Ethereum network’s transition from a proof-of-work (PoW) consensus is likely to flood the crypto industry with out-of-work ETH miners, causing severe disruption to all PoW tokens. Speaking to Cointelegraph, Andy Long, CEO of Bitcoin miner White Rock believes the upcoming Ethereum Merge will force PoW miners to look for greener pastures, such as other PoW blockchains, and thus “swamp” other coins — increasing mining difficulty and reducing profitability, stating:”As GPU miners point their hardware at other chains their difficulty will increase causing lower returns and splitting the reward amongst more miners.”Long added that the migration will likely force many crypto miners to give up and abandon their expensive mining rigs. “Hashrate will flow to alternative GPU PoW coins, and many miners will simply give up and try to sell off their farms of cards,” he said. “Some miners will try to sell their High-Performance Computing (HPC) or GPU cloud services and will likely fail since there’s too much capacity chasing a limited amount of demand,” he added. GPU prices and demand have already been declining as a result of falling Bitcoin (BTC) prices, leading to some cards selling for below the list price and sellers struggling to offload their mining rigs and cards for inflated prices.Regardless of what happens after the Merge, Long says he is “not strongly opposed” and is interested to see “how market forces play out.” “When I was building GPU farms in 2017 the Merge was cited as an imminent threat and would have been much more impactful then.” “There will always be GPUs mining some GPU optimized chains, but I doubt we will return to the levels of revenue seen in ETH proof-of-work at its peak ever again.”Ethereum is expected to transition to a proof-of-stake (PoS) mechanism between September 10-20 and is considered one of the most significant upgrades in the crypto market this year. Related: Largest Ether mining pool Ethermine opens new ETH staking serviceHowever, there are still many cryptocurrencies set to continue along their PoW path, including Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH), as well as Ethereum Classic (ETC), Monero (XMR), Zcash (ZEC) and Ravencoin (RVN).White Rock Management is a Switzerland based digital asset technology company that mines cryptocurrencies through data centres located in Texas and Sweden. 

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Terror groups may turn to NFTs to raise funds and spread messages — WSJ

The first known case of a nonfungible token (NFT) created and shared by a “terrorist sympathizer” has come to light, raising concerns that the immutable nature of blockchain tech could help the spread of terrorist messages and propaganda. In a Sept. 4 article in The Wall Street Journal (WSJ), intelligence experts said the NFT could be a sign that Islamic State and other terror groups may also be using blockchain technology to evade sanctions and raise funds for their terrorist campaigns. The NFT in question was reportedly discovered by Raphael Gluck, co-founder of the U.S.-based research firm Jihadoscope, who discovered the NFT through pro-ISIS social-media accounts.The digital token, named “IS-NEWS #01,” is said to be an image bearing the Islamic State’s emblem with text praising Afghanistan-based Islamic militants for attacking a Taliban position. Mario Cosby, a former federal intelligence analyst specializing in blockchain currencies, said the user created another two other NFTs on Aug. 26; one showing an Islamic State fighter teaching students to make explosives and the other condemning smoking cigarettes. A screenshot of the IS-NEWS #01 NFT (left). Source: The Wall Street JournalThe national security analysts said this could be a sign that terrorist groups may be using the emerging technology to spread their message and test new funding strategies, though the NFT in question was not listed for sale nor had it been traded. “It’s very much an experiment […] to find ways to make content indestructible,” said Gluck.The digital token was reportedly listed on NFT marketplace OpenSea, but the company quickly took the listing down and closed the posters account, citing a “zero-tolerance policy on inciting hate and violence.” The trio of NFTs was also seen on the NFT marketplace Rarible and several others before being taken down. While none of the NFTs appear to have been traded, Cosby says the existence of the tokens is a cause for concern because “it’s as censorship-proof as you can get,” adding:“There’s not really anything anyone can do to actually take this NFT down.”Security experts have previously expressed their concerns about the future potential for terrorists to exploit emerging technologies and markets, including NFTs, to fund attacks.In February, the U.S. Treasury Department released a study highlighting the growth of the market for NFTs as an area of potential concern. In March, Israeli authorities seized a set of 30 crypto wallets from 12 exchange accounts linked to Hamas, a militant group based in the Gaza Strip. Related: Terrorists still raise money through crypto, but the impact is limitedLast April, Matthew Levitt, director of the Jeanette and Eli Reinhard Program on Counterterrorism and Intelligence at The Washington Institute for Near East Policy told Cointelegraph that while crypto has been linked to several terror financing cases, “it has not yet become a primary means of terror financing.”

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NFT watchdog Rug Pull Finder gets its own NFT giveaway exploited

In an ironic twist, Rug Pull Finder (RPF), a nonfungible token (NFT) watchdog focused on identifying Web3-based fraud has fallen victim to a smart contract exploit of its own.According to the NFT investigator’s post on Twitter on Sept. 2, two people exploited a technical flaw in the project during the free mint stage — pilfering 450 NFTs out of a possible 1,221 which were intended to be limited to one per wallet.As discussed on our Twitter space’s earlier today – We messed up. We messed up big. Our contract had a flaw that allowed 2 people to scoop up over 450 NFTs.Here is what we are doing to fix it — Rug Pull Finder (@rugpullfinder) September 2, 2022According to RPF, their smart contract had a flaw that saw the code exploited, allowing the bandits to allocate more than the allowed number of NFTs. The RPF team made moves to rectify the situation soon after the exploit, offering one of the people involved a deal to pay them a bounty of 2.5 Ether (ETH) (worth $3,944.68 at the time of writing) to recover 330 of the NFTs, which was accepted. The crypto investigators noted that the exploiters “did negotiate in good faith and allow us to come to a reasonable solution with them.”The free mint, titled “Bad Guys” featured artworks of NFT “scammers accidentally let loose on the blockchain.” The collection serves as a whitelist or presale for members before the upcoming 10,000 NFT collection this fall. Holding a Bad Guy NFT provides exclusive access to the mint, the RPF main drop, and other upcoming projects. Warnings ignoredThe watchdog group admitted that the exploit occurred as they didn’t heed warnings from an unknown source about the potential flaws sent 30 minutes before the mint went live. “After reviewing it with three different dev teams, we did not believe the credibility of the information sent to us… We were clearly wrong, and we are truly, truly sorry.”Admitting a mess up is rare and accountable. Bravo RPF. You are to be commended. The last few months I have seen token contracts with flaws, bad code and as of yesterday suspect code for anyone to take advantage of and not one of those devs said what you guys just stated — Figs (@CryptoRoog) September 2, 2022

The NFT investigator pointed to digital blockchain creative agency Doxxed Media as having handled all the art and contract work, and they “did not have our team audit it, or an independent 3rd party.” The irony of the exploit has not been missed by the crypto community, with some praising the NFT investigator for admitting to its fault, while others have questioned how a company specializing in detecting smart contract vulnerabilities didn’t conduct the proper checks on its own project. I think its concerning when security minded projects like RugPullFinder get their discord breached and their code exploited yet they’re offering those exact services to customers. What do you think? pic.twitter.com/zJRWUXqic5— OKHotshot (@NFTherder) September 2, 2022

After the shaky start however, RPF has managed to get their NFT project back on track. Related: How do you pick your next NFT? Community respondsThrough consultation with their online community, RPF has decided to distribute the recovered NFTs across a variety of spaces, including in the “Bad Guys Vault,” a raffle on Twitter, and two further raffles for projects that are friends of Rug Pull Finder and the Rug Pull Finder public sale wallet collection list.

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Kyle Roche files to withdraw from class-action practice after video leak

In the wake of allegations made by Crypto Leaks, high-profile crypto lawyer Kyle Roche has filed to withdraw as counsel on several crypto class-action lawsuits.According to a series of court records released on Aug. 31, Roche is understood to be “no longer involved” in Roche Freedman’s class action practice. The law firm has also filed to withdraw Roche as counsel in class action lawsuits involving Tron and Global Trading. Wow. A few days after being the subject of a controversial undercover video, @KyleWRoche has withdrawn as counsel for the Tether/Bitfinex lawsuit. This filing says he’s no longer part of his firm’s class action practice. pic.twitter.com/ihrT41h9DQ— JacobSilverman.shill (@SilvermanJacob) August 31, 2022In a motion to withdraw as attorney in the Tether and Bitfinex Crypto asset litigation case, cryptocurrency law firm Roche Freedman said “Roche would “withdraw as one of the attorneys for the Proposed Class” and “Mr. Roche is no longer involved in RF’s class action practice.”The motions do not mean the lawsuits will be dropped altogether, as they could still proceed without Roche. Roche’s withdrawal from the lawsuit comes amid the ongoing fallout from a recent CryptoLeaks expose, which feature videos of Roche allegedly revealing a relationship with Ava Labs, and a “secret pact” to “harm” competitors through the United States legal system. On Aug. 30, Roche released a statement denying the allegations, claiming they are an attempt by a disgruntled defendant from a previous case. “These videos were recorded without my consent during private meetings with Christen Ager-Hanssen, whom I now know works for Dominic Williams, the creator of ICP Token, and the defendant in a high-profile securities fraud litigation my firm brought against him.” Ava Labs CEO Emin Gün Sirer followed suit, denying the alleged arrangement with Roche, calling it “conspiracy theory nonsense.”Cryptoleaks, an anonymous website that claims to launch investigations based on information from whistleblowers and expose attacks and scams in the crypto world, has not backed away from its claims. Related: Ripple CEO comments on Crypto Leaks, denies funding law firm to target othersRoche’s withdrawal from the case soon after the leak has seen speculation as to the cause, but there has yet to be any confirmation from Roche Freedman about the reason for his withdrawal and whether they will proceed with the lawsuits.

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Sneaky fake Google Translate app installs crypto miner on 112,000 PCs

Crypto mining malware has been sneakily invading hundreds of thousands of computers around the world since 2019, often masquerading as legitimate programs such as Google Translate, new research has found. In an Aug. 29 report by Check Point Research (CPR), a research team for American-Israeli cybersecurity provider, Check Point Software Technologies revealed the malware has been flying under the radar for years, thanks partly to its insidious design which delays installing the crypto mining malware for weeks after the initial software download. .@_CPResearch_ detected a #crypto miner #malware campaign, which potentially infected thousands of machines worldwide. Dubbed ‘Nitrokod,” the attack was initially found by Check Point XDR. Get the details, here: https://t.co/MeaLP3nh97 #cryptocurrecy #TechnologyNews #CyberSec pic.twitter.com/ANoeI7FZ1O— Check Point Software (@CheckPointSW) August 29, 2022Linked to a Turkish-based-speaking software developer claiming to offer “free and safe software,” the malware program invades PCs through counterfeit desktop versions of popular apps such as YouTube Music, Google Translate and Microsoft Translate.Once a scheduled task mechanism triggers the malware installation process, it steadily goes through several steps over several days, ending with a stealth Monero (XMR) crypto mining operation being set up. The cybersecurity firm said that the Turkish-based crypto miner dubbed ‘Nitrokod’ has infected machines across 11 countries. According to CPR, popular software downloading sites like Softpedia and Uptodown had forgeries available under the publisher name “Nitrokod INC”. Some of the programs had been downloaded hundreds of thousands of times, such as the fake desktop version of Google Translate on Softpedia, which even had nearly a thousand reviews, averaging a star score of 9.3 out of ten, despite Google not having an official desktop version for that program. Screenshot by Check Point Research of the alleged fake appAccording to Check Point Software Technologies, offering a desktop version of apps is a key part of the scam. Most programs offered by Nitrokod don’t have a desktop version, making the counterfeit software appealing to users who think they’ve found a program unavailable anywhere else. According to Maya Horowitz, VP of Research at Check Point Software, the malware riddled fakes are also available “by a simple web search”.”What’s most interesting to me is the fact that the malicious software is so popular, yet went under the radar for so long.” As of writing, Nitrokod’s imitation Google Translate Desktop program remains one of the main search results. Design helps avoid detectionThe malware is particularly tricky to detect, as even when a user launches the sham software, they remain none the wiser as the fake apps can also mimic the same functions that the legitimate app provides. Most of the hacker’s programs are easily built from the official web pages using a Chromium based framework, allowing them to spread functional programs loaded with malware without developing them from the ground up. Related: 8 sneaky crypto scams on Twitter right nowSo far, over one hundred thousand people across Israel, Germany, the U.K., America, Sri Lanka, Cyprus, Australia, Greece, Turkey, Mongolia, and Poland have all fallen prey to the malware. To avoid getting scammed by this malware and others like it, Horowitz, says several basic security tips can help reduce the risk. “Beware of lookalike domains, spelling errors in websites, and unfamiliar email senders. Only download software only from authorised, known publishers or vendors and ensure your endpoint security is up to date and provides comprehensive protection.”

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