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North Korea’s Crypto Heist Funds Nuclear Threat, Allies Warn

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The White House announced on Friday night that top national security officials from the U.S., South Korea, and Japan met in Seoul to discuss the challenges posed by North Korea’s nuclear and missile programs, as well as its cyberattacks on the cryptocurrency industry.

U.S., South Korean, and Japanese National Security Advisors discussed trilateral initiatives, including consulting on regional crises, cooperation on ballistic missile defense, and efforts to counter North Korea’s use of cryptocurrency to fund weapons of mass destruction programs.

The statement also said that the three officials discussed North Korea’s ties with Russia, which have been growing amid the tensions between Pyongyang and Washington.

North Korea’s Crypto Heists Under Scrutiny

North Korea has been accused of stealing billions of dollars worth of cryptocurrency from various projects and platforms in the past few years, using sophisticated hacking techniques and tools. The U.S. government has attributed some of these cyberattacks to the Lazarus Group, a notorious hacking group linked to the North Korean regime.

Last year, the Lazarus Group allegedly stole over $600 million from Ronin Bridge, a blockchain network that connects the popular online game Axie Infinity to the Ethereum network.

The U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) has imposed sanctions on several entities and individuals that it claims have helped North Korea launder the stolen cryptocurrency.

Last week, OFAC added two crypto addresses associated with the Sinbad mixer, which mixes cryptocurrency transactions to hide their origins and destinations. Law enforcement agencies also seized Sinbad’s website from several countries.

OFAC has also blacklisted various wallet addresses and individuals from the global financial system, alleging that they have supported North Korea’s efforts to use the stolen digital assets to finance its WMD programs.

One of the most notable targets of OFAC’s sanctions was Tornado Cash, a privacy tool that allows users to anonymize their Ethereum transactions. OFAC claimed that more than $100 million in stolen cryptocurrency had passed through the service.

Related Reading | Bitcoin Traders On Edge After “Bull Trap” Rumours

Ethereum Surges To $2,340, Longs Overweight: Risk Ahead

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According to the recent analysis from Cryptonary, Ethereum (ETH) has successfully broken out of the pennant pattern, surging towards the critical $2,340 horizontal resistance. This move aligns with the predictions made just a day ago by analysts at Cryptonary.

Technical analysis reveals that ETH not only breached the pennant pattern but has also reclaimed its primary uptrend, marking a bullish turn for its price. Currently, the cryptocurrency is engaged in a battle to maintain levels above the newly flipped $2,340 horizontal resistance, which is now potentially functioning as support. Simultaneously, ETH must uphold the uptrend line.

Should a more substantial breakdown occur, market analysts anticipate the $2,120 area to serve as a robust support level. The Relative Strength Index (RSI) indicates that ETH has entered overbought territory across major timeframes, prompting a cautious approach.

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Market mechanics come into play with Ethereum’s Open Interest (OI) surging to new local highs at $8.47 billion. The OI-Weighted Funding Rate has concurrently increased to 0.023%, signaling a market bias towards Long positions. Longs are displaying a willingness to pay a relatively significant premium compared to Shorts, indicating a prevailing positive sentiment.

Ethereum: Cautious Optimism Amid Long Vulnerability

Cryptonary’s perspective on the situation is cautiously optimistic. As anticipated, ETH appears to be entering a new trading range between $2,340 and $2,640. However, short-term stability hinges on ETH maintaining levels above $2,340 to establish this area as a solid support zone.

Despite the positive outlook, analysts at Cryptonary express concern about long positions potentially being vulnerable to a flush. The Funding rate, standing at 0.023%, suggests that Longs are exposed and may face risks in the near term.

Cryptonary maintains its position in ETH and reveals a strategy of Dollar-Cost Averaging (DCA) further into ETH in the event of a retracement to $2,120. This approach reflects a commitment to navigate market volatility and capitalize on potential buying opportunities. However, investors and traders are advised to monitor these critical levels closely and remain vigilant to changes in market sentiment that could impact the trajectory of Ethereum in the coming days.

Related Reading | Bitcoin Ordinals Record-Breaking Sale Hits 10.4 BTC

Solana (SOL) Hits $72, Eyes $81 Amid Overbought Signals

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Solana (SOL) has surged to an impressive $72, catching the attention of crypto enthusiasts. The cryptocurrency managed to find substantial support at $61 before catapulting to its current value, with speculations arising about the potential for it to reach $81 in the near future, as suggested by a tweet from Cryptonary.

Technical analysis reveals that SOL has successfully bounced off the $61 support level, reclaiming its main uptrend. However, concerns arise as the current move is deemed overbought across various timeframes, particularly on the 3D and Weekly charts. The cryptocurrency now faces overhead horizontal resistance at $81, indicating a potential local top. 

Despite the bullish momentum, caution is advised for long positions, given that Open Interest (OI) has surged to yearly highs at $1.06 billion, with a significant portion favoring long positions. Although lower than 24 hours ago, the OI-Weighted Funding Rate remains at 0.03%, signaling potential vulnerability for longs and the possibility of a squeeze.

Cryptonary provides insights, suggesting that SOL might be range-bound between $61 and $81 in the short term. The analyst does not rule out the possibility of a leverage flush out of long positions, which could result in a 10-15% pullback if SOL retests the $61 support level. Despite the caution, there is optimism surrounding Solana’s performance, with the cryptocurrency currently trading at $76.41, boasting a market cap of $32 billion and holding the sixth position on CoinMarketCap.

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Factors Driving Solana (SOL) Rise

Solana’s recent surge can be attributed to various factors, including airdrops from Solana-based projects and the Jito airdrop, where eligible users received 10% of the total supply of 1,000,000,000 JTO tokens. The Jito Foundation, focusing on enhancing the staking economy, distributed the tokens to those who staked small amounts of SOL. 

Additionally, Robinhood’s expansion of cryptocurrency trading options in the European Union may be contributing to the increased valuation of SOL, as the platform now supports over 25 digital assets, including Solana. With these factors in play, the future trajectory of Solana remains intriguing for both investors and enthusiasts.

Related Reading | Bitcoin Traders On Edge After “Bull Trap” Rumours

Fidelity’s Innovative Bitcoin ETF Proposal: A Deep Dive Into ‘In-Kind’ Workflows

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In a pivotal move towards integrating cryptocurrency into traditional financial markets, asset management giant Fidelity met with the Securities and Exchange Commission (SEC) on December 7 to discuss its proposed spot Bitcoin exchange-traded fund (ETF). 

As disclosed on the regulator’s website, the meeting brought together representatives from Fidelity, including Shelley Harding, Cynthia Lo Bessette, and others, with participants from the SEC’s Division of Trading and Markets and Division of Corporation Finance.

During the session, Fidelity presented a comprehensive overview titled “Bitcoin ETF Workflows,” shedding light on the intricacies of “In-Kind” creation and redemption models. The discussion addressed various aspects of the ETF, fostering a collaborative dialogue between industry stakeholders and regulatory authorities.

One key element highlighted in Fidelity’s presentation was the efficiency of arbitrage and hedge through physical creations. The outlined models emphasized the role of Authorized Participants (AP), Registered Broker-Dealers, and ETF Market Makers in facilitating the creation and redemption of ETF shares. The presentation underscored the significance of physical creation and redemption mechanisms in enhancing trading efficiency and secondary market pricing for all participants.

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Bitcoin ETF: In-Kind Create and In-Kind Redeem Models

The proposed workflow detailed the roles and responsibilities of entities involved, such as APs acting as Agencies for non-self-clearing ETF market maker firms with Crypto Affiliates. The process included in-kind creation and redemption steps involving trade dates, settlement dates, and the crucial role of various entities like Transfer Agents, ETF Custodians, and Crypto Affiliates.

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For in-kind creation, the process involved the ETF Market Maker requesting an AP to facilitate the creation of ETF shares, with the subsequent delivery of the required Bitcoin to the ETF Bitcoin Custodian. On the settlement date, the ETF Custodian released the ETF shares to the AP, acting as an agency, for onward delivery to the ETF Market Maker Broker-Dealer.

Conversely, the in-kind redemption process entailed the ETF Market Maker requesting an AP to facilitate the redemption of ETF shares, ultimately leading to the delivery of ETF shares to the ETF Custodian’s account at the Depository Trust Company (DTC). The intricate steps involved in both creation and redemption underscored the meticulous planning required for the successful integration of a spot Bitcoin ETF into the market.

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Nevertheless, Fidelity’s proactive engagement with the SEC and the detailed presentation on Bitcoin ETF workflows underscores the industry’s commitment to navigating the regulatory landscape and establishing a robust framework for cryptocurrency exchange-traded funds. 

Related Reading | Bitcoin Traders On Edge After “Bull Trap” Rumours

Bitcoin Traders On Edge After “Bull Trap” Rumours

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Bitcoin traders are currently grappling with concerns that the cryptocurrency markets might be ensnared in a bull trap. Santiment, a prominent market analyst, conveyed through X [formerly Twitter] that the flagship crypto has stabilized after assertions of a “bull trap.” A bull trap denotes a deceptive signal within a declining trend in a financial asset, such as a stock or index. This misleading signal occurs after a convincing rally that appears to be a trend reversal, subsequently breaking a prior support level. Traders and investors acting on the buy signal often find themselves “trapped,” incurring losses on their long positions.

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Bitcoin Traders On Edge After "Bull Trap" Rumours 7

While some enthusiasts anticipate the commencement of an exuberant bull run, skepticism looms among others, suggesting that Bitcoin might be entangled in a substantial bull trap. According to this narrative, the crypto could retreat to $30,000 before reaching its all-time high [ATH] in late 2024. The increasing doubt in the market dynamics may contribute to Bitcoin’s upward movement toward $50,000, creating pressure on short positions betting on lower prices.

User reactions to this analysis varied, with some expressing interest and adopting a wait-and-see approach, emphasizing the unpredictable nature of the crypto market. One user likened the market to a thrilling plot twist, highlighting the never-ending uncertainty that characterizes cryptocurrency trading.

Bitcoin Rally Halts, Altcoins Surge

Bitcoin experienced a dip to $43,000 during the day, following its rapid ascent to nearly $45,000 earlier in the week. This downturn suggested that traders capitalized on profits after Bitcoin’s breakout from the $38,000 mark just a week ago. Presently, Bitcoin is trading at approximately $43,496, reflecting a 1.1% decrease over the past 24 hours.

While Bitcoin faced a temporary pause in its momentum, Ethereum and alternative cryptocurrencies are once again surging. Ethereum and Solana, the second-largest crypto, reached 19-month highs. Ethereum witnessed a 5% surge, reaching $2,372, its highest level since May 2022. This rally had a domino effect, elevating the prices of other Ethereum-related cryptocurrencies. Ether Classic [ETC] saw a 6% appreciation, while the governance token [LDO] of the liquid staking protocol Lido increased by over 11%. Native tokens of Ethereum scaling networks Optimism and Arbitrum also experienced gains of 22% and 9%, respectively, during the day.

Chainlink’s Long Game: Funding Rate Skews Positive, Price Aims for $20

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Chainlink (LINK) is showing bullish signs with its funding rate ratio leaning towards longs, reaching its highest level in four weeks. This signals increased optimism and speculation around the asset, potentially leading to a price surge.

As of today, LINK has successfully reclaimed the $16 resistance level, a key psychological barrier. This is crucial in maintaining the upward momentum. Now, the question is whether this will trigger a temporary “fear of missing out” (FOMO) rally, forming a local top, or if the price will continue its ascent towards the $20 mark with minimal resistance.

Several factors support the bullish sentiment surrounding Chainlink. Firstly, the network’s oracle services remain highly sought after within the blockchain ecosystem. Developers rely on Chainlink to connect their smart contracts with real-world data and off-chain resources, facilitating a wide range of applications. This demand is likely to continue growing as the Web3 space expands.

Furthermore, Chainlink has been actively expanding its capabilities. Recent advancements include the Cross-Chain Interoperability Protocol (CCIP), which allows smart contracts to communicate across different blockchains, and the Chainlink Proof of Reserve (PoR) system, designed to enhance transparency and trust in DeFi protocols. These innovations are attracting new users and further solidifying Chainlink’s position as a leading infrastructure provider for the decentralized future.

FOMO Buoyed by Chainlink’s Bullish Tide

The positive funding rate ratio also indicates that traders are increasingly taking long positions on LINK, anticipating further price appreciation. This sentiment could become self-fulfilling, as increased buying pressure drives the price higher, potentially attracting more investors and pushing the price towards the $20 target.

However, it’s important to remember that market sentiment can shift quickly. While the current indicators are positive, a sudden negative turn in the broader crypto market could lead to a pullback in LINK’s price. Therefore, investors should remain cautious and closely monitor market dynamics before making any investment decisions.

Overall, Chainlink’s strong fundamentals, growing demand, and positive funding rate ratio suggest a promising outlook for the asset. If the current momentum continues, LINK could break through the $20 resistance level and reach new highs in the coming months. However, it’s essential to exercise caution and remain vigilant in this dynamic market environment.

Bitcoin Ordinals Record-Breaking Sale Hits 10.4 BTC

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Continuing its remarkable trajectory, Bitcoin Ordinals has achieved yet another milestone, with NFT marketplace Magic Eden witnessing the highest-ever Ordinal sale, totaling 10.4 BTC. This historic transaction involved the Honey Badger collection, a series of 10K inscriptions spanning from 8 to 1029518. The buyer, identified as the pseudonymous Twitter user “OG General,” earned accolades from Magic Eden, which publicly acknowledged the legendary acquisition.

Magic Eden, a prominent cross-chain NFT platform that incorporated BTC Ordinals in March 2023, celebrated OG General on Twitter, hailing them as a “legend.” In response, OG General provided context, highlighting that Inscription 8 was created at a time when Ordinals had minimal attention and was inscribed on January 15 at 1 sat/vB. In a subtle jab at skeptics, popular crypto researcher Zack Voell commented, “Bitcoin Inscription 8 sold for 10 BTC today. But Ordinals are dead.”

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Bitcoin Ordinals Record-Breaking Sale Hits 10.4 BTC 9

Bitcoin Ordinals ignited considerable excitement within the community shortly after its launch in January 2023. Over eight months later, ordinal inscriptions continue to play a prominent role in the BTC network, generating fervent discussions within the cryptosphere. Detractors argue that these inscribed satoshi Ordinals utilize block space inefficiently, potentially leading to increased Bitcoin transaction fees and slower transaction times for network users.

Sotheby’s Pioneers Bitcoin Ordinals in Art

Despite a noticeable decline in sales volume, Bitcoin Ordinals remain an active force. The recent record-breaking sale has reignited interest and discussion surrounding this unique protocol. Advocates of BTC Ordinals are particularly intrigued by its potential to expand Bitcoin’s utility beyond traditional financial transactions.

In a groundbreaking move, Sotheby’s Digital Art Department has entered the spotlight by announcing the inaugural auction featuring BTC Ordinals art. Crafted by the mysterious artist Shroomtoshi, operating under the pseudonym BitcoinShrooms, this distinctive collection is poised to captivate both enthusiasts and collectors.

As reported by TronWeekly, the featured artwork, depicting two distinct mushrooms and a pixelated avocado seed, is anticipated to command a significant price ranging from $20,000 to $30,000, marking a momentous venture into the intersection of cryptocurrency and the art world.

Bitcoin Poised for Massive Growth in 2024: A Look at Key Predictions

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Investment management firm VanEck has made a bold prediction; over $2.4 billion will flow into Bitcoin exchange-traded funds (ETFs) in the first quarter of 2024 alone. This forecast, coupled with the anticipated launch of the first spot Bitcoin ETFs, paints a picture of a transformative period for Bitcoin and the wider cryptocurrency market.

This optimism stems from several factors. Firstly, the growing desire for “hard money” assets – those immune to inflation and government manipulation – has investors turning to Bitcoin. Its limited supply and decentralized nature make it an attractive alternative to traditional investments.

Furthermore, Bitcoin’s resilience and minimal correlation with traditional markets provide investors with a valuable diversification tool. Analysts predict that despite potential volatility, the Bitcoin price will remain strong, unlikely to drop below $30,000 in the first quarter of 2024.

Another key event to watch is the upcoming BTC halving in April 2024. Historically, halvings have led to significant price increases, and this one is expected to be no different. The report predicts that the halving will be followed by further growth in the BTC price, reaching an all-time high in late 2024.

Adding fuel to the fire are anticipated global political changes coinciding with the BTC price surge. If the price reaches the $100,000 mark, some even speculate that Satoshi Nakamoto, the creator of BTC, could be named Time Magazine’s “Man of the Year.”

Beyond Bitcoin, other exciting predictions for 2024 include:

  • Blockchain gaming: A blockchain game is expected to surpass 1 million daily active users, led by platforms like Immutable and its high-budget titles.
  • Solana’s rise: Solana is projected to become a top 3 blockchain by both market capitalization and total value locked (TVL).
  • KYC in DeFi: A shift towards Know Your Customer (KYC) enabled DeFi applications is anticipated, with Uniswap leading the change. This could attract institutional investors and drive up token values.

Overall, 2024 promises to be a defining year for Bitcoin and the entire blockchain ecosystem. With potential inflows of billions of dollars and a favorable market environment, Bitcoin is poised for significant growth. The year will also see exciting developments in blockchain gaming, DeFi, and other sectors, further solidifying the transformative potential of this emerging technology.

Judge Denies Binance Founder’s Request To Leave US Before Sentencing

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Binance founder Changpeng “CZ” Zhao has been denied his request to return to the United Arab Emirates (UAE) until his sentencing date in February 2024. A federal judge in Seattle ruled that Zhao poses a high flight risk and ordered him to stay in the United States.

Zhao pleaded guilty to money laundering charges on Nov. 21, admitting that he operated an unlicensed money-transmitting business and violated the Bank Secrecy Act. He agreed not to appeal any sentence of up to 18 months in prison, which is the maximum penalty he faces.

According to the court documents, Zhao has “enormous wealth and property abroad, and no ties to the United States,” His family lives in the UAE, and he has “favored status” in the country. The judge said that the government would not be able to secure his return if he decided to flee.

In the UAE, his family lives, and it seems that he receives special tre­atment. Considering this, Judge Richard Jone­s concluded that the defe­ndant hasn’t proven with strong evidence that he won’t flee if he­ goes back to the UAE.

Based on the foregoing reason, the Court GRANTS the government’s motion, and the defendant shall remain in the continental United States during the period between his plea and sentencing, said Judge Jones.

Binance Settles With US Regulators For $4.3 Billion

The money laundering charges against Zhao were part of a larger settlement between Binance and US regulators, including the Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.

Binance agreed to pay $4.3 billion in fines and forfeitures and to cooperate with the authorities in ongoing investigations. Binance also admitted failing to implement adequate anti-money laundering and counter-terrorism financing policies and procedures and allowed US customers to trade on its platform without proper registration and oversight.

As part of the settlement, Zhao stepped down as CEO of Binance and transferred his ownership stake to a trust. He also agreed to cooperate with the appointment of a monitor to oversee Binance’s compliance with US laws and regulations.

Binance is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of over $20 billion. The company has faced regulatory scrutiny and pressure from several countries, including the UK, Japan, Germany, and Singapore, over its operations and compliance.

The settlement with the US regulators was seen as a major step for Binance to resolve its legal troubles and improve its reputation in the global crypto industry. However, Zhao’s guilty plea and potential prison sentence could cast a shadow over the company’s future.

Related Reading | Fidelity’s Bitcoin ETF Finds A Spot On DTCC, Boosting Approval Prospects

LayerZero Labs Confirms Token Launch In 2024 Amid Interoperability Push

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Vancouver-base­d blockchain infrastructure provider LayerZe­ro Labs has officially announced its intention to launch a token in the first half of 2024. The announcement was made on the X platform (formerly known as Twitter), where LayerZero addressed the speculation and expectations of its community.

Community discussions and concerns about communication have be­en noted, and it is now confirmed that Laye­rZero will introduce its own token. The distribution process is a priority, and efforts will be made­ to ensure it is carried out accurate­ly, with completion expected in the first half of 2024.

LayerZero Labs: A Pioneer in Cross-Chain Messaging

LayerZe­ro has announced its strategic efforts to enhance interoperability and strengthen cross-chain messaging infrastructure. The goal is to provide decentralize­d application developers with a more secure and efficient way to interact with different blockchains.

The demand for high-throughput applications, especially in gaming and me­dia sectors, has been increasing in the crypto landscape. Howeve­r, the infrastructure for seamle­ss cross-chain functionality has fallen behind.

LayerZe­ro is actively working to bridge­ this gap. LayerZero’s proactive approach is evident in its recent success in securing substantial venture capital. In less than a week this spring, the company close­d two separate funding rounds, raising a total of $255 million.

LayerZero Labs: A $3 Billion Valuation In Less Than A Year

LayerZe­ro’s recent funding rounds have prope­lled its valuation to an impressive $3 billion. Notable­ investors, including Andreesse­n Horowitz (a16z) and Sequoia Capital, participated in these­ rounds. Sequoia Capital co-led the first round with a contribution of $135 million and remained involved in the subse­quent $120 million funding.

LayerZero had previously secured $2 million in see­d money just a year ago and followed it up with an additional $6 million in a Se­ries A round eight months ago. The consistent funding momentum reflects the industry’s confidence in and support for LayerZe­ro Labs.

LayerZero Labs has taken a decisive step in responding to community expectations by confirming the launch of its token. With a commitment to pre­cise distribution and a strategic focus on interope­rability, LayerZero aims to play a crucial role in me­eting the evolving ne­eds of the dece­ntralized landscape.

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