Alleged – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sun, 31 Aug 2025 22:49:45 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Alleged – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Fenwick & West Slams Revised FTX Lawsuit, Denies Ties to Alleged Fraud https://earlybirdsinvest.com/fenwick-west-slams-revised-ftx-lawsuit-denies-ties-to-alleged-fraud/ https://earlybirdsinvest.com/fenwick-west-slams-revised-ftx-lawsuit-denies-ties-to-alleged-fraud/#respond Sun, 31 Aug 2025 22:49:45 +0000 https://earlybirdsinvest.com/fenwick-west-slams-revised-ftx-lawsuit-denies-ties-to-alleged-fraud/

Fenwick & West has asked a Florida judge to block efforts to update a class-action lawsuit that claims the firm was closely involved in the events leading to the collapse of FTX.

In a filing submitted on August 25, Fenwick argued that the updated claims have no merit. The firm said it merely provided standard legal services and had no knowledge of any fraudulent activity.

Fenwick also criticized the timing of the amended lawsuit. According to the firm, the materials on which the plaintiffs rely have been publicly available for years. It also called the complaint misleading and lacking in substance.

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One key point raised by the FTX users is testimony from former FTX engineer Nishad Singh. Plaintiffs claim Singh said Fenwick helped disguise misused customer funds and questionable loans.

However, Fenwick stated that Singh only described the firm’s role in advising on how to structure founder loans, a common legal task for private companies.

Fenwick further noted that many witnesses in Sam Bankman-Fried’s trial confirmed that the fraud occurred without the awareness of FTX’s internal lawyers, external advisors, or accountants.

The updated lawsuit also introduces new claims that Fenwick played a role in launching and marketing the FTX Token (FTT), which may violate securities laws in Florida and California. Fenwick argued that they should have been included when the lawsuit was first filed.

The firm suggested the plaintiffs are adding these claims because most of their original allegations, particularly those targeting celebrities who endorsed FTX, have already been dismissed.

Recently, US federal authorities appealed the sentencing decision involving two Estonian citizens who admitted to operating a large-scale crypto mining scam. What was their argument? Read the full story.


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Crypto Sleuths Trace $8 Million Solana Buy to Alleged Coinbase Thief https://earlybirdsinvest.com/crypto-sleuths-trace-8-million-solana-buy-to-alleged-coinbase-thief/ https://earlybirdsinvest.com/crypto-sleuths-trace-8-million-solana-buy-to-alleged-coinbase-thief/#respond Mon, 25 Aug 2025 18:32:38 +0000 https://earlybirdsinvest.com/crypto-sleuths-trace-8-million-solana-buy-to-alleged-coinbase-thief/

Blockchain security firms have tracked a wallet suspected of being linked to a Coinbase



$3.54B

theft after it used millions in stablecoins to purchase Solana
SOL


$197.42

.

The wallet recently carried out several large purchases of SOL. The transactions totaled about $8 million in value.

According to a report by Lookonchain, the wallet first swapped DAI
DAI


$0.9988

for USDC
USDC


$0.9990

, then used a bridge to transfer funds over to the Solana network. Once there, it completed multiple trades by buying 38,126 SOL at prices near $209 per token.

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At the time of reporting, Solana’s value had dropped to around $202.15, which indicates that the wallet’s new holdings had already decreased in value.

This wallet has been active for several months. In May, Lookonchain highlighted a large sale of 26,762 ETH
ETH


$4,577.09

from the same address, worth about $69.25 million at that point.

In July, the wallet made two ETH purchases, one on the 7th for 4,863 ETH ($12.55 million), and another on the 19th for 649 ETH ($2.3 million), with Lookonchain citing a purchase price of $3,5621 per coin.

Arkham Intelligence labeled the address as the “Coinbase hacker”, while Lookonchain estimated that it may be tied to a theft exceeding $300 million from Coinbase-linked accounts.

Recently, Coinbase reported that the exchange lost around $300,000 in tokens. What did Chief Security Officer Philip Martin say? Read the full story.


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OFAC Hits Garantex, Grinex Over Alleged $100 Million in Criminal Transfers https://earlybirdsinvest.com/ofac-hits-garantex-grinex-over-alleged-100-million-in-criminal-transfers/ https://earlybirdsinvest.com/ofac-hits-garantex-grinex-over-alleged-100-million-in-criminal-transfers/#respond Fri, 15 Aug 2025 14:07:50 +0000 https://earlybirdsinvest.com/ofac-hits-garantex-grinex-over-alleged-100-million-in-criminal-transfers/

The US Treasury’s Office of Foreign Asset Control (OFAC) has sanctioned a Russia-linked cryptocurrency exchange, which shows that regulators are taking action against certain digital asset firms despite President Donald Trump’s push for oversight.

According to an August 14 press release, OFAC named Garantex Europe OU and said it was used by ransomware groups and other criminals.

The agency reported that the exchange handled more than $100 million in illegal transactions since 2019. Also added to the sanctions list were Garantex’s successor, Grinex, three of the exchange’s executives, and six related companies based in Russia and Kyrgyzstan.

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Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said:

Exploiting cryptocurrency exchanges to launder money and facilitate ransomware attacks not only threatens our national security, but also tarnishes the reputations of legitimate virtual asset service providers.

This is not OFAC’s first action against Garantex. The platform was previously sanctioned in April 2022 for its ties to Russia’s financial system after the war in Ukraine began.

That decision came as many US companies and regulators sought to cut business links with Russian banks and firms following the invasion.

The latest sanctions expand OFAC’s list of restricted cryptocurrency services, which already includes Russian-language platforms such as Cryptex, Bitpapa, and Chatex.

The FBI recently warned that scammers pose as lawyers, using past loss details to steal more from crypto fraud victims. What did the agency say? Read the full story.


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North Korean Kimsuky hackers exposed in alleged data breach https://earlybirdsinvest.com/north-korean-kimsuky-hackers-exposed-in-alleged-data-breach/ https://earlybirdsinvest.com/north-korean-kimsuky-hackers-exposed-in-alleged-data-breach/#respond Tue, 12 Aug 2025 09:30:51 +0000 https://earlybirdsinvest.com/north-korean-kimsuky-hackers-exposed-in-alleged-data-breach/

North Korea

The North Korean state-sponsored hackers known as Kimsuky has reportedly suffered a data breach after two hackers, who describe themselves as the opposite of Kimsuky’s values, stole the group’s data and leaked it publicly online.

The two hackers, named ‘Saber’ and ‘cyb0rg,’ cited ethical reasons for their actions, saying Kimsuky is “hacking for all the wrong reasons,” claiming they’re driven by political agendas and follow regime orders instead of practicing the art of hacking independently.

“Kimsuky, you are not a hacker. You are driven by financial greed, to enrich your leaders, and to fulfill their political agenda,” reads the hackers’ address to Kimsuky published in the latest issue of Phrack, which was distributed at the DEF CON 33 conference.

“You steal from others and favour your own. You value yourself above the others: You are morally perverted.”

The hackers dumped a portion of Kimsuky’s backend, exposing both their tooling and some of their stolen data that could provide insight into unknown campaigns and undocumented compromises.

The 8.9GB dump currently hosted on the ‘Distributed Denial of Secrets” website contains, among others:

  • Phishing logs with multiple dcc.mil.kr (Defense Counterintelligence Command) email accounts.
  • Other targeted domains: spo.go.kr, korea.kr, daum.net, kakao.com, naver.com.
  • .7z archive containing the complete source code of South Korea’s Ministry of Foreign Affairs email platform (“Kebi”), including webmail, admin, and archive modules.
  • References to South Korean citizen certificates and curated lists of university professors.
  • PHP “Generator” toolkit for building phishing sites with detection evasion and redirection tricks.
  • Live phishing kits.
  • Unknown binary archives (voS9AyMZ.tar.gz, Black.x64.tar.gz) and executables (payload.bin, payload_test.bin, s.x64.bin) not flagged in VirusTotal.
  • Cobalt Strike loaders, reverse shells, and Onnara proxy modules found in VMware drag-and-drop cache.
  • Chrome history and configs linking to suspicious GitHub accounts (wwh1004.github.io, etc.), VPN purchases (PureVPN, ZoogVPN) via Google Pay, and frequent use of hacking forums (freebuf.com, xaker.ru).
  • Google Translate use for Chinese error messages and visits to Taiwan government and military sites.
  • Bash history with SSH connections to internal systems.

The hackers note that some of the above are already known or previously documented, at least partially.

However, the dump gives a new dimension to the data and provides interlinking between Kimsuky’s tools and activities, exposing and effectively “burning” the APT’s infrastructure and methods.

BleepingComputer has contacted various security researchers to confirm the veracity of the leaked documents and its value and will update the story if we receive a response.

While the breach will likely not have long-term impact on Kimsuky’s operations, it could lead to operational difficulties for Kimsuky and disruptions to ongoing campaigns.

The latest issue of Phrack (#72) is currently only available in a limited physical copy, but the online version should be ready for people to read for free in the following days from here.

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ASIC Targets Four Men in Victoria in Alleged Scam-Linked Crypto Fund Transfers https://earlybirdsinvest.com/asic-targets-four-men-in-victoria-in-alleged-scam-linked-crypto-fund-transfers/ https://earlybirdsinvest.com/asic-targets-four-men-in-victoria-in-alleged-scam-linked-crypto-fund-transfers/#respond Sun, 10 Aug 2025 16:21:57 +0000 https://earlybirdsinvest.com/asic-targets-four-men-in-victoria-in-alleged-scam-linked-crypto-fund-transfers/

Four men in Victoria, including a former lawyer, have been charged with helping move money from an investment scam into cryptocurrency and overseas bank accounts.

Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), announced the charges in a statement on August 7.

Dimitrios “James” Podaridis, Peter Delis, Bassilios “Bill” Floropoulos, and Harry Tsalikidis are accused of handling money linked to a fake investment scheme that ran between January and July 2021.

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While the four are not accused of creating or running the scam, ASIC said they were involved in processing the money collected from victims. Some of this money was moved from Australian bank accounts to international ones. In other cases, it was converted into cryptocurrency.

Podaridis and Floropoulos have each been charged with 28 counts of dealing with money believed to be from a serious crime. Delis faces eight charges, while Tsalikidis has been charged with 12 offenses, which include helping the others.

The scam itself used fake financial comparison sites and ads on Facebook to attract people looking for investment opportunities. Once a person showed interest, they were contacted by phone or email.

They were then sent documents that looked like they came from trusted financial companies. These materials offered fixed returns of 4.5% to 9.5%, depending on the investment period, which ranged from one to ten years.

The next court date is set for October 30, 2025, when a judge will consider whether the case should go to trial.

ASIC recently issued a warning to Bitget for offering crypto futures products without proper authorization. What did the agency say? Read the full story.


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Ripple CTO Addresses Kraken Founder's Alleged XRP Hate https://earlybirdsinvest.com/ripple-cto-addresses-kraken-founders-alleged-xrp-hate/ https://earlybirdsinvest.com/ripple-cto-addresses-kraken-founders-alleged-xrp-hate/#respond Fri, 01 Aug 2025 23:03:44 +0000 https://earlybirdsinvest.com/ripple-cto-addresses-kraken-founders-alleged-xrp-hate/

This week, a casual IPO poll from Ripple CTO David Schwartz took an unexpected turn when one user seized the opportunity to renew a familiar accusation: that Kraken’s cofounder, Jesse Powell, has long held a negative view of Ripple and XRP. Schwartz was not having it. In his opinion, Powell’s stance has always been more nuanced.

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Title news

This comment prompted closer scrutiny of Powell’s XRP history, revealing that the relationship is far from straightforward. Powell has been vocal about the legal ambiguity surrounding XRP for years, often pointing out how its early ties to Ripple Labs (then OpenCoin) could create complications for regulators. 

However, his tone has not been one of disdain but rather one of caution layered with technical nuance.

In one notable thread, he argued that if XRP were found to be a security, exchanges such as Kraken could be held liable, even if they operated in good faith. He described this as an “asymmetrical risk” that made listing decisions difficult. 

Later, when Kraken suspended XRP trading for U.S. customers, Powell made it clear that it was a business decision, not a personal one, describing the legal uncertainty as “too risky from a business perspective.”

Kraken aims for $15 billion IPO

Now, that debate is resurfacing just as Kraken reenters IPO territory. The company is reportedly raising $100 million ahead of a potential public listing, aiming for a valuation of over $15 billion. The funding round is expected to close by the end of the year and, if successful, would revive IPO plans that were shelved after Coinbase’s turbulent debut.

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Kraken remains one of the world’s most active exchanges, posting over $1.37 billion in daily trading volume and supporting more than 1,100 trading pairs.

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Trump files $10 billion lawsuit against Wall Street Journal over alleged Epstein birthday card https://earlybirdsinvest.com/trump-files-10-billion-lawsuit-against-wall-street-journal-over-alleged-epstein-birthday-card/ https://earlybirdsinvest.com/trump-files-10-billion-lawsuit-against-wall-street-journal-over-alleged-epstein-birthday-card/#respond Sat, 19 Jul 2025 11:43:32 +0000 https://earlybirdsinvest.com/trump-files-10-billion-lawsuit-against-wall-street-journal-over-alleged-epstein-birthday-card/

President Trump has filed a defamation lawsuit against The Wall Street Journal and its parent company News Corp, alleging they falsely claimed he sent a lewd birthday card to Jeffrey Epstein in 2003.

The lawsuit, filed in Florida federal court, centers on a July 17, 2025 WSJ article titled “Jeffrey Epstein’s Friends Sent Him Bawdy Letters for a 50th Birthday Album. One was from Donald Trump.” Trump seeks $10 billion in damages, claiming the story was fabricated to “malign President Trump’s character and integrity.”

According to the complaint, the WSJ article described a card allegedly containing “several lines of typewritten text framed by the outline of a naked woman” with Trump’s signature placed “below her waist, mimicking pubic hair.” The article claimed the card included a theatrical-style dialogue between Trump and Epstein, with lines like “We have certain things in common, Jeffrey” and ending with “A pal is a wonderful thing. Happy Birthday — and may every day be another wonderful secret.”

Trump’s lawyers say they warned the WSJ before publication that the story was false, writing in an email that “President Trump did not author the purported letter.” The complaint states the Journal “failed to attach the letter, failed to attach the alleged drawing, failed to show proof that President Trump authored or signed any such letter, and failed to explain how this purported letter was obtained.”

The lawsuit names WSJ parent company News Corp, its owner Rupert Murdoch, CEO Robert Thomson, and the article’s authors Khadeeja Safdar and Joseph Palazzolo as defendants. It claims the story has been viewed by “hundreds of millions of people” and caused “overwhelming financial and reputational damages to President Trump.”

“The reason for those failures is because no authentic letter or drawing exists,” the lawsuit states.

The WSJ has yet to respond to the lawsuit. My guess is they are well-prepared to deal with it.

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Russian pro basketball player arrested for alleged role in ransomware attacks https://earlybirdsinvest.com/russian-pro-basketball-player-arrested-for-alleged-role-in-ransomware-attacks/ https://earlybirdsinvest.com/russian-pro-basketball-player-arrested-for-alleged-role-in-ransomware-attacks/#respond Thu, 10 Jul 2025 18:35:52 +0000 https://earlybirdsinvest.com/russian-pro-basketball-player-arrested-for-alleged-role-in-ransomware-attacks/

Russian professional basketball player Daniil Kasatkin was arrested in France at the request of the United States for allegedly acting as a negotiator for a ransomware gang.

Daniil Kasatkin is a Russian basketball player who briefly played NCAA basketball at Penn State before returning to Russia in 2019. In four seasons with MBA-MAI, he appeared in 172 games before he left the team.

According to French media, Kasatkin was arrested at Paris’s Charles de Gaulle airport on June 21st after landing in France with his fiancée.

The arrest was made as part of a United States international arrest warrant for his role as an alleged negotiator for a ransomware gang.

Kasatkin is now under custody while the US seeks to have him extradited to face charges of “conspiracy to commit computer fraud” and “computer fraud conspiracy.”

His lawyer alleges that Kasatkin is not guilty of these crimes and that they are instead linked to a second-hand computer that he purchased.

“He bought a second-hand computer. He did absolutely nothing. He’s stunned ,” his lawyer, Frédéric Bélot, told the media.

“He’s useless with computers and can’t even install an application. He didn’t touch anything on the computer: it was either hacked, or the hacker sold it to him to act under the cover of another person.”

While the name of the ransomware gang was not disclosed, it is reported to have been behind attacks on more than 900 companies, including two federal agencies, between 2020 and 2022.

This description closely matches similar language used by the Department of Justice to refer to the notorious Conti ransomware gang, which emerged as a successor to Ryuk in 2020 and shut down in 2022, following a data breach.

However, it was not previously reported that Conti breached any federal agencies, though they are linked to attacks on state governments.

Last month, French police also arrested four alleged operators of the BreachForums hacking forum, including threat actors using the alias IntelBroker and ShinyHunters.

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Alleged Mastermind Behind $30,000,000 Scam That Targeted Elderly Americans Arrested: Report https://earlybirdsinvest.com/alleged-mastermind-behind-30000000-scam-that-targeted-elderly-americans-arrested-report/ https://earlybirdsinvest.com/alleged-mastermind-behind-30000000-scam-that-targeted-elderly-americans-arrested-report/#respond Tue, 08 Jul 2025 11:41:22 +0000 https://earlybirdsinvest.com/alleged-mastermind-behind-30000000-scam-that-targeted-elderly-americans-arrested-report/

A 42-year-old man who is accused of running a $30 million scam targeting elderly Americans has reportedly just been arrested in Canada.

Gareth West was arrested in Quebec on behalf of American authorities and is now facing extradition to the United States to face fraud charges, reports CBC/Radio-Canada.

West is alleged to have posed as a wealthy real estate developer while running a complex “grandparent scam network” that employed more than 20 people and included multiple call centers in the Montreal area.

He faces charges in the US of conspiracy to commit wire fraud and conspiracy to commit money laundering, according to the Royal Canadian Mounted Police (RCMP).

West is alleged to have been the mastermind behind grandparent scammers since at least 2021. The scammers would allegedly phone older Americans, pretend they were their grandchildren who had been arrested or hurt, and say they needed cash right away. Scammers would connect the elderly victims to fake lawyers or bail agents and arrange for cash pickups.

Some 23 of West’s alleged scammer employees were arrested in March.

Police allege that documents they’ve recovered from the suspected scammers show they scammed $30 million during a span of about 67 weeks.

West faces up to 40 years in prison if extradited to the US and convicted of the crimes.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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$100,000,000 Stolen From Central Bank of Brazil in Single Night After Alleged Insider Sold Credentials to Hackers: Report https://earlybirdsinvest.com/100000000-stolen-from-central-bank-of-brazil-in-single-night-after-alleged-insider-sold-credentials-to-hackers-report/ https://earlybirdsinvest.com/100000000-stolen-from-central-bank-of-brazil-in-single-night-after-alleged-insider-sold-credentials-to-hackers-report/#respond Tue, 08 Jul 2025 07:19:50 +0000 https://earlybirdsinvest.com/100000000-stolen-from-central-bank-of-brazil-in-single-night-after-alleged-insider-sold-credentials-to-hackers-report/

Hackers reportedly stole $100 million from the Central Bank of Brazil using security credentials purchased from an alleged insider.

According to a new AP report, the cyberattack targeted Brazil’s popular instant payment system, known as PIX, to steal the massive nine-figure sum.

Hackers were able to pull off the scheme by infiltrating the C&M system, the software company that facilitates connections between financial institutions and the central bank to enable PIX payment transactions.

Police say the hackers used security credentials they allegedly purchased from C&M employee João Roque, who they just arrested. Roque allegedly told investigators he was recruited by the hackers last year and sold them his credentials. The AP was unable to reach Roque’s attorneys for comment.

After gaining access to the C&M system, the hackers initiated fake PIX operations, making off with $100 million in a single night from financial institutions that are plugged into the C&M network.

Police say they are attempting to identify the hackers and that at least four other people participated in the crime. Authorities are also attempting to freeze the suspected stolen assets, and say they have blocked about half the stolen funds connected to the scheme.

In a statement published by local media, C&M says that it is cooperating with authorities and that the breach was likely due to unauthorized access to security credentials, not system flaws.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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