Sysvasc

• The total supply of Ethereum (ETH) decreased in January, resulting in a net deflationary value of $16 million.
• The Ethereum network underwent a significant change with the finalization of the Merge, moving it from proof-of-work (PoW) to proof-of-stake (PoS).
• The Merge has since reduced energy consumption by almost 100%, paving the way for sharding to enhance Ether’s scalability in a future hard fork.

In January of 2021, the total supply of Ethereum (ETH) decreased, resulting in a net deflationary value of $16 million. This shift in the cryptocurrency’s supply and demand dynamics is significant, as it suggests a trend towards increased scarcity and higher market value in the future. The impact of this change on the Ethereum market and its stakeholders is worth paying attention to for anyone interested in the cryptocurrency industry.

The Ethereum network underwent a significant change in September of 2022 with the finalization of the Merge. This transition moved Ethereum from proof-of-work (PoW) to proof-of-stake (PoS), bringing several benefits to the network. PoW miners previously issued around 13,000 ETH in daily block mining rewards, but post-Merge, stakers receive only around 1,700 ETH in daily tips, resulting in an 87% reduction in issuance.

The Merge has since reduced energy consumption by almost 100%, paving the way for sharding to enhance Ether’s scalability in a future hard fork. Base fee burns enable a daily net reduction in supply depending on network usage. The busier the network, the more base fees are burned. For burned base fees to exceed 1,700 ETH and result in a net decrease in supply, the network must have a minimum activity of 16 Gwei daily.

The periods of supply inflation could be seen in the past, however, the deflationary value of Ethereum is likely to remain strong in the years to come. As the demand for Ethereum grows, the limited supply will become an increasingly scarce resource, increasing its value in the cryptocurrency market. This trend will likely have a positive impact on Ethereum’s stakeholders, as increased value could lead to increased profits and benefits.

• Vitalik Buterin, co-founder of Ethereum, saw his wallet holdings decrease by 75% in 2022, from $1.3 billion to $328 million.
• Buterin’s top asset was Ethereum, comprising nearly the totality of his holdings.
• His biggest outflows of the year included $60.25 million worth of Ethereum, two transactions of $50 million worth of USD Coin for a total of $100 million and $48 million.

In 2022, the cryptocurrency industry saw an overall decrease in value and many investors going bankrupt. Despite this, how did portfolios of top institutions and insiders fare? Vitalik Buterin, the co-founder of Ethereum and the face of the ecosystem, had a total of $1.3 billion worth of assets in his publicly-known wallet addresses as of January 1, 2022. However, by the start of 2023, this had decreased by a staggering 75% to $328 million. At press time, the wallet’s value has increased to $423 million.

Buterin’s top asset was Ethereum, comprising nearly the totality of his holdings and amounting to $316 million. His other assets were worth considerably less than a million dollars each, according to data from Arkham Intelligence. The price of Ethereum began the year at $770 and is now trading at $1,612, indicating some increase in value. Yet, Buterin’s wallets are now holding fewer assets due to numerous outgoing transactions and the falling value of several tokens.

Some of the biggest transactions from Buterin’s wallet in 2022 include $60.25 million worth of Ethereum, two transactions of $50 million worth of USD Coin for a total of $100 million and $48 million. This is not an exhaustive list of outgoing transactions, though, as Buterin also sent numerous other payments throughout the year.

In conclusion, Vitalik Buterin’s wallet holdings decreased significantly in 2022, but the price of Ethereum also increased over the course of the year. While his outgoing transactions decreased the total value of his wallet, it has since recovered to $423 million as of Jan. 1, 2023.

– An attacker allegedly drained Raydium’s liquidity pools and transferred 1,774.5 ETH to Tornado Cash to cover their tracks.
– Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain.
– The attacker reportedly used admin wallets to verify the drainage without burning Liquidity Pool tokens.

Recently, a hacker was able to exploit a bug in the Circle’s USDC stablecoin and wrap SOL’s liquidity pools. This resulted in a major loss of over two million dollars for Raydium. To cover their tracks, the hacker allegedly transferred 1,774.5 ETH to Tornado Cash.

Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain. It allows users to deposit and anonymously withdraw Ethereum’s ERC-20 tokens and ethereum (ETH) using different wallet addresses. By doing this, the hacker is able to hide their transaction history from the public.

According to Nansen Portfolio, Raydium lost over two million dollars in the LP compromise. The hacker was able to access the platform’s admin wallets, which allowed them to verify the drainage without burning Liquidity Pool tokens. This enabled them to cover their tracks and make their digital money transfer anonymous.

In response to the attack, CertiK issued a SkyNet Alert, warning users to be vigilant. They warned that a large sum of money had been transferred to Tornado Cash, and advised users to remain aware of the situation.

Etherscan monitoring progress indicates that the hacker’s 0xb98ac wallet address transferred the funds to Tornado Cash. This is just one example of how hackers are using privacy-enhanced smart contracts to hide their tracks and make their transactions anonymous. It is important to remain vigilant and aware of these types of attacks in order to protect yourself and your funds.

• 31-year-old rapper and hacker, Razzlekhan, has landed a new job with a tech firm despite being under house arrest for participating in a $4.5 billion Bitfinex hack.
• Her attorney requested a modification of her house arrest so that she could use three days to work at the tech firm’s New York office.
• Her husband, Lichtenstein, is serving a 25-year jail term on money laundering charges and the couple is trying to secure a plea deal.

31-year-old Heather Morgan, also known as Razzlekhan and Crocodile of Wall Street, has recently landed a new job with an undisclosed tech firm, despite being under house arrest for participating in the 2016 $4.5 billion Bitfinex hack.

Morgan’s attorney Eugene Gorokhov requested a modification of the terms of her house arrest in order for her to use three days of her time at the New York office of the tech firm. The magistrate judge granted this request, allowing Morgan to work as a growth marketing and business development specialist during the hours of 10 a.m to 8:30 p.m. The judge also granted the request for the non-disclosure of the firm details, in order to avoid harassment and disparaging social media comments.

The U.S. Justice Department charged Morgan and her husband Lichtenstein in February 2022 for orchestrating one of the largest hacks in the country’s history. Morgan was released on a $3 million bond, while Lichtenstein is serving a 25-year jail term on conspiracy to commit money laundering charges. The couple has been trying to secure a plea deal since March last year, with the next court hearing scheduled for this month.

Federal authorities have argued in court that the couple already had access to fraudulent travel documents and identities to escape the country, which is why they had initially opposed to Morgan’s $3 million bail bond.

It is unclear if Morgan’s episodes of borderline TikToks helped her close the deal for her new job, but it is clear that the court believes that keeping things under wraps is necessary to protect Morgan from any potential harassment or negative comments on social media.

• Four individuals have been sentenced to a total of 15 years in prison for their involvement in a multi-million pound cryptocurrency fraud.
• The group exploited a vulnerability in an unnamed Australian cryptocurrency exchange to siphon off £22 million (equivalent to nearly $26 million as of press time) through Parker’s trading account between October 2017 and January 2018.
• During the investigation, police recovered 445 bitcoin (BTC) — worth $9.5 million as of press time — along with luxury watches, houses, cars and designer goods.

Last week a group of four individuals were brought to justice for their involvement in a multi-million pound cryptocurrency fraud. The group, led by James Parker, had exploited a vulnerability in an unnamed Australian cryptocurrency exchange to siphon off an estimated £22 million (equivalent to nearly $26 million as of press time) through Parker’s trading account between October 2017 and January 2018.

Unfortunately, Parker was not alive to be brought to justice, as he had died in 2021. However, his co-conspirators were brought to trial, with his financial advisor Stephen Boys taking the brunt of the blame. Boys had collaborated with a UK national living in Dubai to exchange the cryptocurrency into fiat money and launder it through foreign-based online accounts.

The success of the fraud led to the group having more money than they knew what to do with, and they started giving away gift cards worth £5,000 to strangers in the street, as well as buying cars for people they met in pubs. Boys himself testified that he spent £1 million in cash by carrying it in a suitcase to buy a villa from Russian nationals, as well as paying £60,000 to corrupt officials in order to be able to continue laundering the hack proceeds.

Fortunately, the group’s activities eventually attracted the attention of law enforcement, leading to their arrest and conviction for fraud and transferring criminal property. During the investigation, police recovered 445 bitcoin (BTC) — worth $9.5 million as of press time — along with luxury watches, houses, cars and designer goods.

Boys was found guilty of conspiracy to commit fraud by false representation, as well as transferring criminal property and money laundering. The other three members of the group were found guilty of failing to report knowledge of criminal property, while one of them was also found guilty of money laundering. In the end, the group was sentenced to a total of 15 years in prison.

• Binance released a report that looks back at 2022, and some of the important trends emerging in the blockchain space for 2023.
• Ethereum (ETH) completed „The Merge“ — the move from proof-of-work (PoW) to proof-of-stake (PoS) — in September 2022.
• Layer 1 protocols, sometimes known as „the mainnet,“ have distinct capabilities, such as the capacity to execute and finalize transactions on its own chain.

On January 17th, 2023, Binance, the world’s leading cryptocurrency exchange, released a report that looks back at the developments of the blockchain industry in 2022 and provides insights into the emerging trends in 2023. The report was issued in light of the macroeconomic situation that had deterred established asset classes and exerted significant pressure on emergent asset classes, such as cryptocurrencies.

The report identified the important themes for 2023 while providing a brief overview of 2022. It highlighted the eventful year that Layer 1 protocols had experienced, such as Ethereum (ETH) completing “The Merge”, which was the move from proof-of-work (PoW) to proof-of-stake (PoS) in September 2022. Layer 1 protocols, sometimes known as “the mainnet”, have distinct capabilities, such as the capacity to execute and finalize transactions on its own chain.

In addition, the report also noted the rise of DeFi and the increasing demand for digital assets, as well as the need for better regulations to nurture the growth of the industry. Furthermore, it also discussed the importance of private blockchains as well as the need for a long-term vision to ensure the sustainability of the industry.

The report concluded that in 2023, the blockchain industry will continue to evolve and that the focus should be on creating a regulatory environment that encourages innovation and development. Moreover, there will be opportunities for more collaborations between traditional financial institutions and blockchain companies, which will further accelerate the growth of the industry.

Overall, the report provides an in-depth look at the developments of the blockchain industry in 2022 and outlines the key trends that will shape the industry in 2023. As the technology continues to evolve, it is important for regulators and governments to continue to foster innovation and nurture the development of the industry to ensure its long-term sustainability.