Bitcoin Extends Gains as Investors Await Recovery Fund Details | Tech News

Bitcoin Extends Gains as Investors Await Recovery Fund Details

Cryptocurrencies pushed higher on Tuesday as investors awaited more details about an industry recovery fund promised by Binance Holdings.

By:BLOOMBERG
| Updated on: Nov 15 2022, 20:24 IST
This malicious Firefox add-on stole thousands of dollars in cryptocurrency
Bitcoin
1/6 A particular malicious add-on for Firefox, that goes by the name Safepal Wallet, has managed to scam users by stealing money from them and managed to live on the Mozilla add-ons store for seven months before getting detected and removed. (Pixabay)
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2/6 Safepal is essentially a cryptocurrency wallet application that is capable of holding more than 10,000 types of assets, including Ethereum, Bitcoin, Litecoin, etc. However, Safepal is an official smartphone app that is available for Apple and Android both. There are no known “authentic” Safepal browser extensions. (BleepingComputer)
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3/6 According to a post shared by a user who goes by the name Cali on the Mozilla Support forum, within a few hours of installing and logging in to the Safepal Wallet extension with their real Safepal credentials, they saw their wallet balance drop to $0 from $4,000.  (Mozilla Support Forum )
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4/6 While investigating Safepal Wallet, BleepingComputer came across the phishing domain used by the add-on and this webpage was also listed as the "support site" link on the fake add-on's home page: https://safeuslife.com/tool/. WHOIS records indicate the this phishing site was registered in January this year via Namecheap. And BleepingComputer reported that at the time of them filing this report, the webpage is still live and it instructs people to key in their "12-word Backup Phrase in the correct order to pair your SafePal Wallet". (BleepingComputer )
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5/6 Once the recovery phrase is entered and the form is submitted, the page refreshes without any noticeable response and the recovery phrase is sent to the attacker. A stolen recovery phrase can give attackers control over your wallet along with the ability to access and transfer funds. (Pixabay)
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6/6 Five days after Cali publicly reported the incident, a Mozilla spokesperson responded to say that they were investigating the issue and the page for Safepal Wallet has since been removed by Mozilla. The Mozilla add-ons store now has one-star reviews posted by some users that are warning others to not download “Safepal Wallet”. (BleepingComputer )
Bitcoin
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Cryptocurrencies saw a good day on Tuesday with the biggest gainer being Bitcoin which climbed toward $17,000 with a gain of about 2% (Bloomberg)

Cryptocurrencies pushed higher on Tuesday as investors awaited more details about an industry recovery fund promised by Binance Holdings Ltd.'s Chief Executive Officer Changpeng ‘CZ' Zhao.

Bitcoin, the largest token, climbed toward $17,000 with a gain of about 2%, while second-ranked Ether added a similar percentage as of 1:20 p.m. in Hong Kong. The moves provided some respite from a damaging selloff triggered by the descent into bankruptcy of Sam Bankman-Fried's FTX exchange.

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Digital assets linked to his now-fallen empire, such as Solana and Serum, stabilized. So did Cronos, the native coin of Crypto.com, whose platform is under scrutiny for any signs of stress as the sector reels from the FTX wipeout.

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Billionaire Zhao, operator of the world's biggest crypto exchange, announced the plan for the fund Monday and said more details would follow. That helped to stabilize sentiment on speculation the step may stem contagion after a $200 billion drop in the value of digital assets since FTX first began teetering.

Meanwhile, an Elon Musk tweet that Bitcoin “will make it” also salved the mood. Dogecoin, a token the Tesla chief executive officer has touted in the past, edged up for a third day.

While markets have gained on Zhao's move, such a fund may not be best for the industry, said Quantum Economics Chief Executive Officer Mati Greenspan. Binance already has too much control in a decentralized market, he said.

“That sort of concentration of power makes me uncomfortable,” said Greenspan. “It's the kind of thing crypto was designed to avoid and one of the lessons we should have learned from last week.”

Some of the first court documents to hit FTX's bankruptcy docket showed that the collapse may involve more than one million creditors, illustrating the reach of Bankman-Fried's business before it rapidly unraveled.

Derivatives markets highlight ongoing concerns about the outlook. The Bitcoin futures curve shows the token's spot price is higher than its futures price -- an inversion hinting at bets that the digital asset will resume declines.

Caroline Pham of the US Commodity Futures Trading Commission said the crypto sector suffers from poor risk management. 

“It is hard to see where the contagion might stop,” Pham told Bloomberg TV. “More news will come out as people continue to work through their exposures.”

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First Published Date: 15 Nov, 20:24 IST
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