cryptocurrency

China’s Crypto Dilemma: What Happens to Seized Digital Assets?

April 21, 2025April 21, 2025 Jorge Santos

As one of the strictest nations in the world when it comes to cryptocurrency, China has long maintained a ban on digital asset trading and mining. Yet, despite this rigid stance, the country finds itself in possession of a growing stockpile of confiscated cryptocurrencies. The irony is striking: a Government that outlaws crypto is now trying to figure out what to do with billions in digital assets seized from criminal activity. A Legal Grey Zone In recent years, Chinese law enforcement agencies have cracked down on various crypto-related crimes, from…

The DOJ’s Retreat from Crypto Enforcement: A Double-Edged Sword

April 11, 2025April 11, 2025 Jorge Santos

In a significant policy shift, the U.S. Department of Justice (DOJ) has disbanded its National Cryptocurrency Enforcement Team (NCET), signalling a move away from broad regulatory actions against the cryptocurrency industry. This decision, aligned with the Trump administration’s pro-crypto stance, aims to reduce what it perceives as regulatory overreach and foster innovation in the digital asset space. A Cause for Concern: Potential Rise in Crypto Scams While the intention to support innovation is notable, the move raises concerns about the potential for increased crypto-related scams and fraudulent activities. The NCET…

Surge in Crypto Thefts: Over $2 Billion Lost in Q1 2025

April 10, 2025April 10, 2025 Jorge Santos

The cryptocurrency industry has been rocked by a sharp rise in cyber thefts, with more than $2 billion stolen in just the first quarter of 2025. Hacken’s Web3 Security Report shows that thefts are up 96% compared to the same period in 2024. This is one of the biggest waves of cybercrime the crypto sector has ever seen. Analysts suggest that rising geopolitical tensions, macroeconomic instability, and growing sophistication among cybercriminal groups are contributing factors behind this escalation. High-Profile Breaches Fuel Massive Losses Among the most devastating attacks was the…

From Garantex to Grinex: A case study in crypto sanctions evasion and brand resurrection

April 4, 2025April 4, 2025 Jorge Santos

In March 2025, the global crypto community witnessed a major enforcement action as U.S. and European authorities took down Garantex, a Russia-linked cryptocurrency exchange accused of facilitating money laundering, ransomware payouts, and darknet market activity. Just weeks after the domain seizure and public takedown, a suspicious exchange emerged under a new name: Grinex. This article dives deep into how Garantex rebrand and bypass sanctions, why this matters for global crypto regulation, and how investigators can spot and stop these evasive tactics. Who was Garantex? Founded in 2019 and operating primarily…

Emerging AI-driven cyber threats: How criminals attract victims online

March 24, 2025March 24, 2025 Jorge Santos

The rise of generative AI has resulted in ground-breaking innovation in practically every field, including, sadly, cybercrime. Tools such as ChatGPT, FraudGPT, and WormGPT have reduced the barrier to launching complex social engineering assaults, allowing even “low-skilled” criminals to accurately simulate trust, authority, and professionalism. BlockDefenders has been actively monitoring how threat actors evolve. One of the most obvious trends in 2025 is that hackers will utilize AI to help them hack systems and manipulate people. This article discusses how artificial intelligence (AI) is being used to entice and deceive…

The Bybit Hack: A Vertical Attack

March 9, 2025March 9, 2025 Jorge Santos

The recent Bybit hack surprised the cryptocurrency industry due to the sheer volume of the loss, which involved an estimated $1.46 billion in Ethereum, as well as the vertical assault approach deployed. Rather than compromising Bybit’s core infrastructure, attackers targeted Safe{Wallet}, a provider of multi-signature wallet security. The attack exposes serious gaps in Bybit’s operational security and Safe’s failure to detect unauthorised system changes. This article offers a timeline of events, analyses Safe’s security flaws, investigates Bybit’s insufficient transaction processing procedures, and discusses what crypto organisations can learn from traditional…

Fake Cryptocurrency Recovery Companies: How to Avoid Scams

February 19, 2025February 19, 2025 Jorge Santos

Cryptocurrency fraud is on the rise, and many victims seeking assistance face an additional layer of deception: fake crypto recovery companies. These malicious operations offer to restore stolen assets but often victims are tricked further with upfront payments and unreal guarantees. Additionally, scammers regularly apply follow-up scams, posing as recovery firms or police enforcement, to steal even more money from victims who have already been defrauded. In this article, we dive into why crypto fund recovery is never guaranteed, expose known fake recovery companies, and offer crucial advice on how…

I Caught You, Pervert! Phishing Scams and How to Protect Yourself

January 31, 2025January 31, 2025 Sven Martinsson

Earlier this week I was contacted by an old friend who was nervous about potentially having been hacked. The message read something like this: “I got this email saying they caught me doing something disgusting. They claim to have hacked my accounts and want Bitcoin, or they’ll share everything with my friends and family. They sent it from my own email address! Is this real? Am I screwed?” We met up at a café in a grey and rainy Helsinki, her laptop and phone between us, the screen still displaying…

The Double-Edged Sword of Crypto’s Global Rise

January 24, 2025January 24, 2025 Sven Martinsson

After 6 years of working with cryptocurrencies on a deeper level, one thing is certain; Cryptocurrencies are no longer niche. For us, who are analysing trends and adoption from the slightly colder latitudes on earth, we can safely say that with over 10% of Finland’s population now owning crypto, the trend mirrors what we’re seeing globally. From the United States to Southeast Asia, Bitcoin, Ethereum, and countless other digital currencies are steadily becoming household names. This rise has been bolstered by the kind of headlines that stir excitement—El Salvador’s President…

The lightning-fast Rise and Fall of Hawk Tuah Token

January 12, 2025March 9, 2025 Jorge Santos

The token was introduced on December 4, 2024, taking advantage of the popularity of social media star Haliey Welch. Promoted as an innovative project, $HAWK quickly gained traction, achieving a market capitalisation of $490 million in minutes. Within hours, the token’s value had plunged by more than 90%, leaving investors with substantial losses. Allegations of a rug pull quickly arose. Evidence of Fraudulent Practices 1. Highly Concentrated Token Holdings Blockchain analysis revealed a significant red flag: 97% of $HAWK tokens were concentrated in 285 wallets at launch. These wallets quickly…