Buzz
Cryptocurrency has been hailed by some as a game-changer that could transform the world of finance and technology, while others view it as a passing trend on the verge of collapse. These digital assets, which are not tied to any government, state, or physical commodity, appeal to crypto enthusiasts for their independence. At the same time, they face opposition from many governments aiming to limit their growth. Yet, they remain incredibly volatile and more vulnerable to misuse compared to traditional fiat currencies.
Here are ten surprising insights into the world of cryptocurrency that stir debates and intrigue.
10. Mining Malware Wrecks Smartphones
In 2017, cybersecurity experts in Russia discovered a new type of crypto cyberattack capable of damaging smartphones. Researchers from Kaspersky Lab warned about malware known as Trojan.AndroidOS.Loapi, which could hijack a phone, bombard it with ads, launch DDoS attacks, and, most concerning of all, use it to mine cryptocurrency, causing significant harm to the device.
Mining is the process through which cryptocurrency blocks are validated. Miners are rewarded for their efforts, typically in crypto. However, the mining process requires an immense amount of computational power, far beyond the capabilities of a smartphone. Kaspersky Lab experts tested the malware on a sample device and discovered that it caused the battery to fail in just 48 hours.
This malicious software is intentionally designed to be challenging to remove. If users try to block its access, the malware has been known to disable the device manager app and lock the screen. It then displays a threatening message: 'Phone data will be wiped [sic]. Are you sure?' Experts suggest the most effective way to eliminate the Trojan is by performing a full factory reset.
9. Squid Game Cryptocurrency Revealed as a Scam
Netflix’s Squid Game has become a worldwide sensation. The massive popularity led to several unofficial spin-offs, including a cryptocurrency named SQUID coin. SQUID enticed users to pay to participate in an online game inspired by the show. The coin saw a massive increase in value, skyrocketing to $2,856 in just a matter of days.
Experts later revealed that the creators of SQUID coin had orchestrated a 'rug pull,' a type of scam where they rapidly exchanged all their coins for another currency, causing the coin’s value to crash. One news outlet estimated that the masterminds behind this scam earned approximately $3.38 million from their scheme.
8. Government Error Pays Drug Dealers Millions
In August 2021, a significant bureaucratic blunder by the Swedish government turned three incarcerated drug dealers into millionaires. Due to an oversight by prosecutors, the trio was handed $1.5 million in Bitcoin after their digital assets were misvalued.
Swedish authorities initially seized 36 Bitcoin from the criminals in 2018. The individuals were charged and imprisoned the following year, and the decision was made to confiscate their illicit profits. However, prosecutor Tove Kullberg opted to convert the Bitcoin value into Swedish krona. Unfortunately, this calculation was based on the value at the time—approximately 1.3 million Swedish krona ($140,000).
Two years later, the Swedish government finally auctioned off the dealers’ cryptocurrency earnings, by which time the value of Bitcoin had skyrocketed by at least ten times. As a result, the three individuals will be reimbursed with approximately 33 Bitcoin.
In the world of cryptocurrency, scams are unfortunately common. In recent years, online vigilantes have made it their mission to track down and expose these crypto fraudsters, holding them accountable for their actions.
Divergence Ventures faced allegations of leveraging confidential details from a portfolio company to manipulate the market, akin to insider trading. Amidst public outrage, the company was compelled to return millions of dollars in Ethereum, which they had accumulated by exploiting airdrop opportunities.
6. The Strange Realm of Altcoin Influencers
Whether you admire her or not, Kim Kardashian wields considerable influence on social media. Yet, in the summer of 2021, some of her followers were perplexed when she posted an ad on Instagram for Ethereum Max. Ethereum Max, a type of alternative cryptocurrency or altcoin, is like a wilder and more unpredictable version of regular cryptocurrencies. Many altcoins are outright scams, with some experts comparing them to Ponzi schemes.
But Kim Kardashian isn’t the only celebrity endorsing these volatile altcoins. Throughout the internet, numerous stars, streamers, and influencers urge their followers to consider these extremely risky and often scam-prone cryptocurrencies.
In 2021, the esteemed esports team FaZe Clan found themselves embroiled in an online controversy after backing the altcoin BankSocial. Following the endorsement, a wave of investors rushed to purchase the dubious currency. The value of BankSocial skyrocketed, only to plummet hours later. Understandably, FaZe Clan’s fans were outraged, with many accusing the gamers of manipulating its value for personal benefit and exploiting their followers.
5. Mr. Goxx, the Trading Hamster
Though the murky realm of cryptocurrency is often clouded by fraudulent schemes and ongoing controversies, there’s a lighter side too. In September 2021, a surprising investor named Mr. Goxx made headlines due to his uncanny ability to navigate the digital currency market. After just a few months of trading, he had already increased his initial investment by 20%, outperforming many professional traders. This was truly remarkable, especially considering Mr. Goxx was, in fact, a hamster.
Somehow, this tiny rodent became a cryptocurrency expert on Twitch, outperforming real investors. Mr. Goxx would pick a cryptocurrency to trade by spinning his 'intention wheel' and then scamper down one of two tunnels, either to buy or sell. Every time he dashed down a tunnel, a trade was executed.
The minds behind Mr. Goxx were two German men in their 30s, passionate about digital currencies. They gave their pet hamster €326 (just under $400), and within months, he had grown his investment by 19.41%. Astonishingly, the brave Mr. Goxx outperformed major stock indices like the FTSE 100 and Dow Jones, as well as prestigious investment firms like Berkshire Hathaway.
Sadly, he passed away shortly after achieving fame, and his furry crypto wisdom was lost forever.
4. China's Cryptocurrency Crackdown
In May 2021, China declared an aggressive crackdown on cryptocurrency. A statement from the People's Bank of China, along with various industry groups, urged banks and online payment platforms to stop processing crypto transactions. While digital currencies remain legal, the move made it significantly harder for people within China to acquire cryptocurrency.
The statement noted, 'The price of cryptocurrency has soared and plummeted,' adding that 'cryptocurrency trading speculation has rebounded, which has seriously violated the safety of the people's property and disrupted the normal economic and financial order.' The authorities criticized cryptocurrencies for having 'no real value support, and prices are extremely easy to manipulate.'
This controversial decision caused major turbulence in the market. Bitcoin dropped below $40,000 for the first time in months, with other cryptocurrencies like Ethereum, Cardano, and Dogecoin also suffering declines. However, not everyone seemed alarmed. The Hong Kong Bitcoin Association suggested that China’s stance wasn’t unprecedented, tweeting, 'For those new to #Bitcoin, it is customary for the People’s Bank of China to ban Bitcoin at least once in a bull cycle.'
3. The Enigmatic Death of QuadrigaCX’s CEO
Gerald Cotten was the CEO of QuadrigaCX, one of Canada's largest cryptocurrency exchanges, and he was deeply focused on ensuring the security of his platform. He took it upon himself to safeguard 115,000 accounts valued at approximately $137 million, using a passphrase that only he knew.
In December 2018, Cotten passed away due to complications from Crohn’s disease, and with his death, access to the crypto assets of 115,000 customers was abruptly cut off.
Cotten’s sudden death sparked widespread speculation, with rumors suggesting that he had staged his own demise. Investigators later discovered that significant amounts of Bitcoin tied to his name had vanished, along with other unexplained files on his laptop. A will, filed just twelve days before his death, was found, but QuadrigaCX had no record of the assets listed within it.
The mysterious circumstances surrounding his death have led many to investigate further. Reddit users have been interrogating Fortis Escorts, the funeral home where Cotten died from a heart attack. Journalists dug deeper into his past, uncovering increasingly bizarre details. A podcast, 'Unraveling Crypto’s Biggest Mystery,' was even created to explore the truth behind the case. Still, the mystery remains unresolved, and it is uncertain whether the 115,000 customers will ever regain access to their lost funds.
2. The Strange Story of the Poly Network Heist
Heists are usually quick affairs—grab the money and escape before anyone notices. But the Poly Network heist was an entirely different story, playing out over an extended period, mostly because of the unique moral code of the individual behind it.
Surprisingly, the hacker wasn’t motivated by money. Mr. White Hat explained that he only took the vast sum to highlight a critical security flaw and because he didn’t trust the company to handle the funds properly. Unlike typical criminals who vanish after a heist, he opted to publish a three-page interview detailing the key issue with Poly Network’s software.
Then, the plot thickened. In an unexpected turn, the hacker locked $200 million in a separate account. This account could only be accessed using a password from both the hacker and Poly Network. Desperate to recover their assets, the company offered Mr. White Hat $500,000 as a reward for identifying the flaw. Within two weeks, the full $610 million was returned.
Once the ordeal concluded, it was reported that Poly Network had offered Mr. White Hat the position of Chief Security Advisor. Whether or not he accepted remains a mystery.
1. The Intricate CryptoEats Scam
In 2021, a group of scammers deceived investors out of hundreds of thousands of dollars by creating a fake food delivery service. CryptoEats was designed to appear legitimate, marketed as a crypto-powered alternative to companies like Deliveroo and Uber Eats, complete with a flashy social media presence and endorsements from various online influencers.
The scammers claimed to have partnered with numerous restaurants and fast-food chains, including well-known brands like McDonald's and Nando’s. They promised to employ a fleet of well-compensated delivery drivers, offering perks like pensions. They even boasted that users could have a coffee delivered within five minutes, with all transactions conducted using the EATS cryptocurrency token.
However, it was all a fabrication. After hosting a launch event, the company disappeared from the internet, taking with it approximately half a million dollars of investors' money. Several influencers who had promoted the nonexistent business were left to apologize for their involvement in the scam.
