FTX Fiasco Pushes Bitcoin Price Lower on Continued Fears of Contagion | Tech News

FTX Fiasco Pushes Bitcoin Price Lower on Continued Fears of Contagion

Cryptocurrencies were mostly lower as the risk of further contagion continues to weigh on investor sentiment.

| Updated on: Dec 13 2022, 17:12 IST
This malicious Firefox add-on stole thousands of dollars in cryptocurrency
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)
image caption
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)
image caption
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 )
image caption
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 )
image caption
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)
image caption
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 )
icon View all Images
Bitcoin dropped as much as 1.4% to $16,882 on Monday as the fallout from FTX collapse continues. (AFP)

Cryptocurrencies were mostly lower as the risk of further contagion continues to weigh on investor sentiment a month after Sam Bankman-Fried's FTX exchange sought bankruptcy protection.

Bitcoin dropped as much as 1.4% to $16,882 on Monday before paring losses. Ether sank modestly as well, while altcoins like Avalanche and Dogecoin posted more significant declines.

You may be interested in

MobilesTablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

The insolvency of one of crypto's most established firms pushed down prices, already in a months-long slide. At the start of the fourth quarter, Bitcoin traded close to $20,000, but over the past month, the token has hovered around $16,500, failing to break above $17,400. Bitcoin is down 63% this year.

Also read
Looking for a smartphone? To check mobile finder click here.

“I would expect us to continue to stay range-bound until the new year,” wrote Aya Kantorovich, former head of institutional coverage at FalconX.

Instead of expanding crypto portfolios, clients have unwound and hedged their crypto exposures, which Kantorovich said has pushed down open interest in Bitcoin and Ethereum. Bitcoin dropped 16% in November, its largest monthly decline since June.

Kantorovich added that she expects funds to “re-deploy into the space in January,” and wrote that crypto markets may be hitting a bottom.

Crypto trading firm Cumberland also said it does not “expect this paradigm to last,” given consolidating price action.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 13 Dec, 17:12 IST