BitMEX was hit with a $55 million sale of Bitcoin (BTC) that quickly dropped to $8,900 but soon stabilized.
Inputs that matter: Ransomware is usually paid in Bitcoin (BTC) or other cryptocurrencies, giving those behind the scam large amounts to unload at any time, potentially creating havoc in the market.
- The Securities and Exchange Commission (SEC) has asked Congress for an additional $158 million to regulate crypto markets in the US.
- BitMEX and other exchanges are looking at ways to protect investors from large order transactions.
The opportunity: According to BitMEX, "An unknown entity sold over 400 bitcoin in a short period of time on the BitMEX BTC/USD spot market."
- Within two minutes of the sale, prices fell to $8,900.
- CoinDesk said, "Prices on other exchanges held well above $60,000."
- Less than 10 minutes later, the price rebounded to $67,000.
Zoom in: Reuters reports that ransomware attacks reached $1 billion in 2023.
- The US Department of Homeland Security details that cryptocurrency, typically Bitcoin, has become a universal ransom payment.
- The UK National Cyber Security Centre (NCSC) warns that AI will escalate the ransomware threat globally.
Between the lines: According to BleepingComputer, over 100 malicious AI models on the Hugging Face platform provide attackers with backdoors.
- This makes it easier for less sophisticated groups to profit from ransom attacks.
- Presumably increasing the number of new attacks to occur in 2024.
Follow the money: Insurance broker Marsh details, "Law enforcement, private sector companies, and service providers have teamed up to develop approaches to trace bitcoin transactions."
- Regardless, the impact of bad actors with large sums of crypto poses a risk to the stability of crypto markets.
Go deeper: Subscribe to the free newsletter to learn more.
Read More
- https://www.tradingview.com/symbols/BTCUSD/
- https://crypto.news/sec-wild-west-crypto-markets/
- https://www.thestreet.com/crypto/markets/bitcoin-price-crashes-to-8900-following-55-million-orders
- https://www.coindesk.com/markets/2024/03/19/bitcoin-flash-crashed-to-89k-on-bitmex/
- https://www.reuters.com/technology/cybersecurity/crypto-ransom-attack-payments-hit-record-1-billion-2023-chainalysis-2024-02-07/
- https://www.hsgac.senate.gov/library/files/hsgac-majority-cryptocurrency-ransomware-report_executive-summary/