If you were around in 2017, you likely remember the Parity wallet hack.
Here’s some context if you don’t.
Parity is an Ethereum infrastructure provider that was in 2017 known for its multi-signature wallet. Multisig is a technology that requires multiple key holders to sign off on transactions to verify them, preventing the stealing of one key to lead to the loss of all funds.
A Parity version was bugged that allowed an attacker to drain 153,037 ETH from three high-profile multisig addresses:
“Today, we witnessed the second largest hack, in terms of ETH stolen, in the history of the Ethereum network. As of 12:19 pm UTC, had drained 153,037 ETH from three high-profile multi-signature contracts used to store funds from past token sales. The problem was initially reported by the Parity team, since the affected MultiSig wallet contract was part of the Parity software suite.”
What happened was that there was a bug that allowed anyone to obtain “exclusive ownership of the MultiSig” and could thus move the funds once they obtained control of it.
150,000 ETH was worth around $30 million as of the time of the hack and around $115 million now.
While many of the funds were previously cashed out through instant swap tools that allowed them to launder their funds through other networks, these tools became unavailable as more stringent KYC/AML regulations were implemented.
This led to a period where the attacker did not cash out his funds.
But now, they have begun to move their Ethereum again.
Here’s how they’re cashing out their funds.
How the Parity hacker is moving their Ethereum
All of the Parity hacker’s addresses are tagged, leaving them with little opportunity to cash out their funds via a centralized exchange.
This raises the question, what can they do.
According to crypto research Igor Igamberdiev, what the individual or group is doing is swapping their Ethereum into RenBitcoin (RenBTC) via decentralized exchanges (take Uniswap, for instance), then withdrawing those RenBTC to their own Bitcoin addresses.
From there, they can mix their funds using “mixer” services, then attempt to cash them out.
That is much more decentralized and private than the Tornado Cash solution, which may find it difficult to correctly hide the originations of millions of dollars worth of Ethereum.
In 2017, the Parity Multisig hacker used Changelly, Shapeshift, and Changer "instant" exchanges owned by real companies to launder money.
— Igor Igamberdiev (@FrankResearcher) January 2, 2021
One address cashed out a handful of RenBTC, though the rest of the hacked funds are inactive for some reason.
Will Smith’s Son, Rapper and Actor Jaden Smith, Posts Mysterious “ETH” Tweet
Jaden Smith joins the crypto-celebrity list with two tweets in a row
The “Icon” author, rapper, Hollywood actor and mega-star, Will Smith’s son Jaden Smith, has posted a mysterious “ETH” tweet that followed a “Web3” publication shortly after.
The purpose behind the two tweets has not been disclosed, but it is most likely tied to the rising popularity of the two industries. Previously, Ethereum’s price has reached the new ATH, which might have caught the famous rapper’s attention.
ETH— Jaden (@jaden) October 22, 2021
Both crypto-related tweets have been warmly welcomed by the audience, collecting approximately 8,000 likes and more than 1,000 retweets on Twitter. In the comment section of the Web3 tweet, Jaden said that he actually owns an NFT just like his industry partner Snoop Dog.
With the rapid price increase of the Bitcoin, DeFi and NFT industries, more celebrities are exploring cryptocurrencies and blockchain technologies. In addition to giving significant investment returns, digital assets technologies may potentially change the banking, finance and art industries in the future.
Ripple CEO Says the SEC Helped Ethereum to Surpass XRP as No.2 Crypto
- Ripple CEO aired his opinion on the crypto market and regulations.
- Brad Garlinghouse said the US SEC granted Ethereum regulatory green light.
At the DC Fintech Week virtual conference on October 21, Ripple CEO Brad Garlinghounse aired his thoughts on the state of the crypto market and regulations. Besides, he holds a grudge over the financial regulator’s approach to Ethereum.
In addition, Garlinghouse declared that the US Security and Exchange Commission (SEC) granted Ethereum regulatory green light that enabled it to surpass his firm’s XRP token.
Likewise, the Ripple boss feels that his firm has been played out. But, at the same time, Ethereum’s subsequent success is at least in part down to more favorable treatment by the US SEC. Also, Garlinghouse stated that it is affecting its market. He said,
“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has exploded, and that clarity has helped.”
To clarify, XRP was the second-largest crypto asset by market cap in late December 2017. But, currently, it has dropped to seventh place while Ethereum has kept the second spot ever since.
Furthermore, the reason why XRP dropped is the US SEC pursuing Ripple over claims that XRP is unregistered security. In fact, in January, Ripple filed a Freedom of Information Act request with the US SEC demanding to know why it didn’t consider ETH security.
As a result, later in July, a district judge allowed the firm to depose a former official who declared in 2018 that ETH was not a security.
Ripple CEO reinstates SEC bias towards ETH, claiming XRP could’ve been No.2
It is not news that the ongoing XRP lawsuit has got the better of Ripple’s XRP token. Ripple CEO, Brad Garlinghouse recently questioned the SEC’s bias towards Ethereum, claiming that XRP would’ve been at the No. 2 position instead of ETH if it weren’t for the commission’s partial crackdown. Garlinghouse spoke at the DC Fintech Week virtual conference yesterday, arguing that the U.S. Securities and Exchange Commission alleged Ripple’s XRP as unregistered security while granting Ethereum a regulatory free pass, which in turn helped ETH shoot through the roof.
“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has kind of exploded and that clarity has helped.”
XRP secured the position of the second-largest crypto asset by market capitalization during the latter half of 2017. However, the token has dropped down to seventh place while Ethereum stands strong as No. 2. Furthermore, Garlinghouse claims that the SEC’s exclusively aggressive anti-crypto stance to allegedly protect the consumers is in fact anti-investors. Referring to the XRP lawsuit, Ripple CEO emphasizes that “nearly 50,000 U.S. people who hold XRP who are trying to sue the SEC for ‘protecting them’”.
XRP Holders left with bearish and frozen funds
Earlier this week, Attorney Deaton Filed a Letter Motion on behalf of the XRP Holders (Movants) that contended SEC’s extension request, with the main argument concerning the XRP holders’ frozen funds because of the consistent postponement of the lawsuit’s final verdict. During the ongoing bull run, XRP remains considerably bear because of the regulatory crackdown on Ripple. However, the court has overlooked the community’s concern and granted the extension explaining that in lieu of pending motions, extra time will only facilitate both parties to complete pending fact discovery and thoroughly prepare for upcoming expert depositions.
“The lack of liquidity within the United States, coupled with the mass de-listings prevents XRP Holders from trading, selling, transferring, or converting their XRP. It is because of this de facto in place seizure of their property that XRP Holders took the extraordinary step to seek intervention as defendants… Any delay in the underlying action marks yet another day XRP Holders do not have access to their funds.”, wrote Deaton.