Crypto Week in Review: Twitter Cracks Down After Bitcoin (BTC) Scam
This week, Elon Musk, Jeff Bezos, Bill Gates, former Vice President Joe Biden, and other Twitter (TWTR) accounts with a blue checkbox next to their names were hacked. The compromised users all tweeted a variation of the following, “I am giving back to the community. All Bitcoin sent to my address below will be sent back double.”
In response to the incident, Twitter immediately blocked posts from verified users to stop the hackers from defrauding more Bitcoin (BTC). The company also appears to have disabled the ability to share strings of numbers and letters that could be Bitcoin or other cryptocurrencies wallet addresses. The breach on Wednesday resulted in Twitter users sending more than $100,000 to the scammer’s Bitcoin addresses.
While no one has publicly taken responsibility for the heist, the hackers did leave a hidden in the Bitcoin addresses. Put together they read, “You take risk when use (sic) Bitcoin for your Twitter game. Bitcoin is traceable. Why not Monero?”
The FBI is now actively looking into the situation and is allegedly concerned by how easy it was for Twitter’s system to be infiltrated by what seems to be a mid-level employee who had access to the site’s admin tools.
The unfortunate incident illuminates a long time effort by scammers to steal money from innocent people by taking advantage of Bitcoin’s blockchain. Once a user sends money to an anonymous address, the transaction can be followed but rarely reversed or traced back to the perpetrator.
Hopefully, more people will be aware of these scams and less likely to send crypto to unknown addresses. I don’t know if I need to say this, but I will just in case, Voyager will never ask you to send us a Bitcoin in return for a reward!
Grayscale Breaks New Record
Grayscale reported another record-breaking quarter, with total investments on the platform reaching $905.8 million.
According to Grayscale, the majority of investments came from institutional investors (85%). Bitcoin is also the most popular investment, with the Grayscale Bitcoin Trust bringing in an average of $57.8 million per week. In comparison, the Grayscale Ethereum Trust (GSET) averaged $10.4 million in weekly investments.
Also, Grayscale continues to buy up a large portion of Bitcoin’s total supply. During 2Q20, inflows into Grayscale Bitcoin Trust were proportional to almost 70% of all Bitcoin mined over the same period. The report found this proportion increased to 118% after Bitcoin completed its third halving in May 2020.
Nearly $60M in Bitcoin Moved to Ethereum in June
The Ethereum (ETH) network is on a hot streak, as Ethereum-based DeFi projects continue to boom. According to data estimates from Dune Analytics, nearly $60 million worth of Bitcoins moved to Ethereum in June.
Medio Demarco, the co-founder of Delphi Digital, contributed the Ethereum boom to the increase of yield farming and MakerDAO (MKR) adding tokenized bitcoin. Demarco predicts this trend to continue as tokenized Bitcoin grows in popularity.
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