Cryptocurrency exchange CoinSpot hacked

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Cryptocurrency exchange CoinSpot hacked; Binance launches Web3 wallet; Marathon Digital achieves 670% revenue growth!

At least $2.4 million in crypto assets were stolen from at least one of the hot wallets of the Australia-based cryptocurrency exchange CoinSpot, most likely through a wallet password hack. 

According to a post published on the Telegram channel on November 8, blockchain detective ZachXBT highlighted two transactions that hackers entered into his wallet. He then stated that the wallet owner bridged the funds to the Bitcoin network via ThorChain and Wan Bridge. 

Blockchain security firm CertiK said the alleged exploit was the result of at least one CoinSpot hot wallet being compromised.

1262 ETH stolen from cryptocurrency exchange Coinspot

According to data from Etherscan, 1,262 Ether worth a total of $2.4 million was sent from a known CoinSpot wallet to the alleged hacker’s wallet

Having received 1,262 ETH, the wallet owner then proceeded to make a series of transfers. In two separate transactions, the wallet owner exchanged 450 ETH for 24 Wrapped Bitcoin (WBTC) via Uniswap.  

According to CertiK research data, over the next 10 minutes, the attacker exchanged 831 ETH through Thorchain and received Bitcoin in return. He sent the Bitcoin to four different wallet addresses. 

BTCScan data showed that the allegedly stolen BTC from the four Bitcoin wallets was distributed to multiple new wallets and then the funds were split into smaller chunks and transferred to new wallets. 

Cryptocurrency exchange CoinSpot hacked; Binance launches Web3 wallet; Marathon Digital achieves 670% revenue growth!

This is a technique commonly used by attackers to prolong the investigation process, making it more difficult to trace the stolen funds. 

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CoinSpot was founded in 2013 and is Australia’s largest cryptocurrency exchange, serving around 2.5 million customers, according to reported user numbers. Regulated by the Australian financial watchdog AUSTRAC, the exchange has been granted an Australian Digital Currency Exchange License by the market regulator.

Binance launches Web3 wallet

At Binance Blockchain Week in Istanbul, the crypto exchange Binance announced its new Web3 wallet, which will be available to users via the Binance mobile app.  

During the launch, Binance CEO Changpeng “CZ” Zhao explained the purpose of the app: 

“Web3 wallets store digital assets, but they represent so much more. They are an integral part of the Web3 ecosystem, empowering individuals with the ability to finance.”

For simplicity, the Binance Web3 wallet will be embedded within the Binance app for cryptocurrency trading. The wallet will use multiparty computing (MPC) to divide a user’s wallet keys into three smaller parts, known as key shares. 

“The division of key shares into three different locations reduces the risk of keys being compromised, making the system less vulnerable to attacks.”

Two of the three key shares will always be controlled by the user and will be self-storing. Binance spokesperson 

Cryptocurrency exchange CoinSpot hacked; Binance launches Web3 wallet; Marathon Digital achieves 670% revenue growth!

According to Richard Teng, head of regional markets at Binance, MPC technology takes away the fear of losing one’s wallet key.

“We want our users to feel confident that they are interacting with Web3 in a secure and protected ecosystem. That’s why we’ve incorporated MPC technology as well as Binance’s security infrastructure into the Web3 Wallet.”  

The three split parts of the keys will be held in three places. The first part will be at Binance, the second part will be stored locally on the user’s mobile phone, and the third part will be encrypted with the user’s recovery password and backed up in personal cloud storage such as iCloud or Google Drive.  

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Marathon Digital achieves 670% revenue growth in Q3 on surge in bitcoin production

Bitcoin mining firm Marathon Digital Holdings has reported a 670% year-on-year increase in revenue for the third quarter of 2023, driven by a near fivefold increase in Bitcoin production.

The results also saw Marathon turn a quarterly profit in the third quarter, with a net profit of $64.1 million, according to the firm’s earnings statement on 8 November.

The company attributed the improvement in its financial results in part to a 467% increase in bitcoin (BTC) production. It mined 6.7 BTC per day in Q3 2022, rising to 37.9 BTC per day in Q3 2023. Similarly, Marathon’s energised hashrate increased by 403% over the same period.

Part of Marathon’s hashrate increase came from its new 27 megawatt hydroelectric mining project in Paraguay, announced on 8 November.

Fred Thiel, Marathon’s CEO and chairman, said the “significant progress” helped strengthen the company’s balance sheet ahead of bitcoin’s scheduled halving in April 2024.

The $417 million bond swap completed in September reduced Marathon’s long-term debt to 56%, saving more than $100 million in cash for shareholders, Thiel said, adding:

“For the first time in two years, the sum of our cash and bitcoin assets exceeded our debt at the end of the quarter.”

Meanwhile, Marathon remains committed to increasing its hash rate in the short to medium term.

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Its installed hashrate is currently 23.1 exahashes per second, but the company aims to increase this to 26 EH/s and by a further 30% in 2024.

MARA share price change on 8 November (including after-hours trading). Source: Google Finance.

According to Google Finance, Marathon’s (MARA) share price fell 6.9% to $8.55 on 8 November, but recovered 4.3% in after-hours trading following Marathon’s earnings release.

Cryptocurrency exchange CoinSpot hacked; Binance launches Web3 wallet; Marathon Digital achieves 670% revenue growth!