2/11 FAL Weekly Digest
Welcome to the FAL Weekly Digest, a source for this week’s biggest news articles and crypto market updates.
Here is what you need to know:
U.S. Snatches $3.6B in BTC from Bitfinex Hackers
The United States Department of Justice (DoJ) has announced the seizure of $3.6 billion worth of bitcoin following the arrest of two individuals connected to the infamous Bitfinex cryptocurrency exchange hack in 2016. Ilya “Dutch” Lichtenstein and Heather Morgan were arrested in New York on Tuesday for “an alleged conspiracy to launder cryptocurrency” that was stolen during the 2016 hack of Bitfinex.
The DoJ was able to trace the stolen funds on the Bitcoin blockchain according to a press release, revealing that Bitcoin was being transferred from the initial recipient wallet to multiple wallets controlled by Lichtenstein and Morgan through “a series of small, complex transactions across multiple accounts and platforms.”
“Today’s arrests, and the department’s largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals,” said Deputy Attorney General Lisa O. Monaco. “In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions. Thanks to the meticulous work of law enforcement, the department once again showed how it can and will follow the money, no matter what form it takes.”
About 120,000 BTC was stolen from the exchange in 2016, which was equal to about $71 million at the time. That amount of BTC is currently valued at about $4.5 billion as of February 2022. Bitfinex quickly released a statement indicating their desire to retrieve the stolen funds, but the U.S. has not yet given any clear indication of what will happen with the seized Bitcoin for now.
Market Update - Bitcoin
The overall cryptocurrency market capitalization is about $1.68 trillion USD, a -9.19% decrease from last week’s valuation of $1.85 trillion. At the time of publication, Bitcoin ($BTC) is valued at $42,650 per bitcoin with a market capitalization of $807 billion making up 41.9% of the overall market.
Bitcoin has seen a significant thrust upwards in price this week from lows of $37,051 to a high of $45,855 formed on Thursday. The rejection at $46k can be seen as a healthy correction for the time being due to the overall recent market structure producing consecutive “higher” lows as BTC regains the $40,000 level as support.
Caution is still advised due to the numerous macroeconomic factors impacting global markets such as higher inflation rates, murmurs from the U.S. Federal Reserve regarding emergency meetings to discuss responses to said inflation, and the boiling geopolitical tension between Russia and the Ukraine/NATO. For a more in-depth technical analysis, please see our report found here.
BlackRock Enters the Ring
BlackRock Inc. is reportedly preparing to offer cryptocurrency trading services to its investor clients. The world’s largest asset management corporation currently manages over $10 trillion worth in assets in 2022, and now plans to provide “client support trading and then with their own credit facility.” This would allow clients of BlackRock to borrow additional capital by using their crypto assets as collateral.
Sources indicate that clients under the BlackRock financial umbrella will be able to trade cryptocurrency using the Aladdin investment management platform, which is an acronym for “Asset, Liability, Debt, and Derivative Investment Network.” BlackRock joins other Wall Street firms such Goldman Sachs and J.P. Morgan Chase in the pursuit of capitalizing on the cryptocurrency craze.
The Apolitical Nature of Blockchain Tech
Blockchain technology has seen increasing use cases as global adoption grows. From supply chain management to gaming and art, blockchain stands to revolutionize the way we interact with information. The health care industry in particular has benefited from the use of blockchain systems, where nations and companies have implemented it in the fight against the COVID-19 pandemic. Countries such as China, South Korea, and Mexico have utilized blockchain systems to track COVID-19 vaccination records, status, and test results in an effort to combat false information.
While these examples are conducive towards the implementation of COVID vaccinations, a recent protest against vaccination mandates has utilized blockchain tech to thwart the efforts taken against their cause. A group of Canadian truck drivers called the “Freedom Convoy” has turned to accepting Bitcoin donations after the fundraising platforms GoFundMe and GiveSendGo froze the funds on the truckers’ accounts.
Contrary to centralized platforms such as GoFundMe, the Bitcoin network is not controlled by a single group or entity who can halt transactions based on ideological differences. The difference between these two conflicting uses is the implementation and use of blockchain systems, rather than the tech itself. Blockchain technology is inherently apolitical, and only when it is utilized for a specific cause or goal is it then associated with an ideal.
Drake Bets Big BTC on Super Bowl
Beloved rapper and singer Drake has recently shared screenshots of his million dollar bet on the upcoming Super Bowl match between Cincinnati Bengals and the Los Angeles Rams.
The award-winning performer revealed that he has placed BTC bets worth a total of $1.26 million on the event through crypto sports betting platform “Stake”. Drake is betting over $471,000 that the Rams will win the match, $329,000 that Rams’ wide receiver Odell Beckham Jr. will have more than 62.5 receiving yards, and another $329,000 that Beckham Jr. will have over 0.5 touchdowns. “All bets are in on the family,” said Drake on the Instagram post. Only time will tell if his Bitcoin bet pays off in the end.
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