Recently Friend.tech users faced potential SIM-swap attacks, leading to significant losses of nearly 109 ETH, equivalent to approximately $178,000, in under a week.
In a SIM-swap attack, malicious actors take control of a user’s mobile number, allowing them to intercept two-factor authentication (2FA) codes sent via text messages. The first incident occurred on Sep.30 when a user named “froggie.eth” reported their Friend.tech account being SIM-swapped, resulting in the loss of over 20 ETH.
Later on, three more reports occurred with similar cases. Users report getting spammed with phishing messages prior to fund loss and that even complex passwords did not save them. A user named “dipper” reported a loss of 6.5 ETH and a user named “digging4doge” mentioned a loss of around 60 ETH.
On Oct. 3, the musician Daren Broxmeyer also said that he was SIM-swapped and drained of 22 ETH. His phone was earlier “spammed with phone calls,” which he believed was to force him to miss a text from his service provider warning him that someone was trying to access his account.
Crypto investment firm Manifold Trading expressed concerns about Friend.tech’s overall security and suggested implementing measures like 2FA, alternative login methods, and enhanced transaction security to mitigate these risks.
The “Titan Fund” has raised $100 million for Asian blockchain startups
Hong Kong-based CMCC Global, a crypto-focused VC firm, has raised $100 million for its Titan Fund to support Asian blockchain startups. Notable investors include Block.one, Pacific Century Group, Winklevoss Capital, Jebsen Capital, and Animoca Brands founder Yat Siu.
Titan Fund’s primary focus will be on investments in these critical areas:
- blockchain infrastructure development
- Consumer applications (gaming and NFTs)
- financial services (exchanges, wallets, and borrowing platforms)
CMCC Global’s Titan Fund marks its fourth crypto venture fund specifically targeting early-stage blockchain startups, emphasizing the Hong Kong market. Already, the fund has made five investments, with two directed towards Hong Kong-based projects:
- Mocaverse – NFT project
- Terminal 3 – Web3 data infrastructure startup
The launch of this $100 million crypto venture fund comes during a period of decreased crypto funding due to the bear market and the fallout from the FTX collapse. According to Pitchbook data, global venture capital investments in crypto firms dropped by 70.9% YoY, with the number of deals decreasing by 55%. This stands in stark contrast to the bull market, where crypto startups were frequently securing billions in funding, leading to the emergence of new unicorns regularly.
The introduction of this crypto VC fund in Hong Kong also underscores the city’s increasing importance as a crypto-friendly hub. Titan Fund’s managing director, Yen Shiau Sin, highlighted that the United States’ regulatory crackdown on crypto has prompted projects to explore opportunities in Asia. Hong Kong, in particular, has been actively shaping a regulatory environment that encourages Web3 development, allowing for regulated crypto exchanges and retail customer services.
FTX Bankruptcy and SBF Fraud Trial
FTX founder Sam Bankman-Fried’s fraud trial began on Tuesday (Sep. 03) with jury selection.
The absence of a clear US crypto legal framework won’t hinder the fraud charges, says the Department of Justice. Bankman-Fried is accused of misappropriating customer funds from FTX, to which he’s pleaded not guilty.
The prosecution and defense continue to spar over admissible evidence, with the regulatory status of crypto exchanges being a point of contention. The DOJ argues that the absence of regulation is irrelevant to whether customer funds were misappropriated. Prosecutors also rejected the defense’s claim that reallocating customer funds was common in the crypto industry.
Bankman-Fried can introduce his philanthropy and charity work but must obtain court approval. The DOJ clarified its stance on allegations of illegitimate political donations, stating it won’t argue that straw donor schemes are unlawful under election laws but will use them to demonstrate inconsistencies in fund usage.
Despite Congress’s failure to regulate crypto specifically, regulators have insisted on treating it like conventional securities trading, a position opposed by Ripple, Binance, and Coinbase.
In a late Wednesday filing, a forfeiture bill issued by the Department of Justice listed two aircraft, a Bombardier Global and Embraer Legacy, as part of assets belonging to Bankman-Fried that could potentially be seized from him. Two luxury jets apparently owned by Sam Bankman-Fried, but never used by him, could possibly be forfeited as U.S. prosecutors try to claw back assets.