Crypto Wallets

Challenges in UK Crypto Asset Registration Process

Saturday. August 31 at 6:00 AM

1 min. read

The Financial Conduct Authority (FCA) in the United Kingdom takes an average of over a year to process registration applications for crypto asset exchanges or custodian wallet providers, according to data analyzed by law firm Reed Smith. Despite a decrease in new applications and several withdrawals, the FCA has been actively involved in regulating the crypto industry. The agency has faced criticism for its enforcement efforts due to a lack of qualified staff. While the processing time has been lengthy, it has issued extensions and guidance following new regulations. The number of crypto firms applying for registration has been decreasing, indicating a better understanding of regulatory expectations. In the past three years, 186 applications were withdrawn, highlighting the challenges faced by firms in navigating the registration process.

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Vulnerability in Uniswap's Web3 Wallets Exposed by ScaleBit

Tuesday. January 14 at 3:00 AM

ScaleBit, a subsidiary of security auditor BitsLab, has identified a potential vulnerability in decentralized exchange Uniswap's Web3 wallets that could jeopardize all stored assets. The flaw allows attackers with physical access to bypass authentication and retrieve the mnemonic phrase, granting full control over the wallet. ScaleBit advises against lending devices until the issue is resolved. In 2024, cryptocurrency losses from cyber exploits rose by 40%, totaling $2.3 billion. Access control breaches, especially in centralized exchanges and custodians, were the main cause. Losses from scams and hacks decreased towards the end of the year. December saw $28.6 million in losses, a significant drop from previous months. Security firms like CertiK and PeckShield reported similar trends. The crypto industry continues to face challenges in security and protection of assets.

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Texas Bitcoin Investor Ordered to Surrender Crypto Assets for Tax Fraud

Thursday. January 9 at 7:00 AM

An early Texas Bitcoin investor, Frank Richard Ahlgren III, has been instructed to hand over his cryptocurrency holdings and access codes following a two-year prison sentence for tax fraud. Ahlgren underreported capital gains from Bitcoin sales totaling over $3.7 million between 2017 and 2019, resulting in a $1.1 million restitution debt to the US government. The Austin Federal Court mandated Ahlgren and his associates to disclose all devices and keys related to his crypto, including Bitcoin, Bitcoin Cash, Bitcoin Gold, Ether, and Litecoin accounts. Any transfer of assets without court approval is prohibited, except for essential living expenses. Ahlgren's compliance is required until he fulfills the restitution or receives further court instructions. This case, the first of its kind, highlights the consequences of tax evasion in the cryptocurrency realm.

Crypto Wallets

Security Risk in Tangem Crypto Wallet App

Thursday. January 2 at 11:00 AM

Tangem, a provider of crypto wallets, recently discovered a major security flaw in its mobile app that unintentionally gathered users' private keys through email exchanges. Despite prior warnings from users about potential security threats, the issue persisted until December 29 when it was brought to light on Reddit. The vulnerability allowed private keys to be stored in email histories, potentially exposing them to Tangem employees. Following community outcry, Tangem acknowledged the bug on December 30, attributing it to a log processing error. While the company claimed to have fully resolved the issue and deleted all affected logs, concerns were raised about their communication approach. Some users criticized the lack of public announcements on social media. As of December 31, Tangem had not made any official statements on their social channels, urging users to update their apps immediately to address the vulnerability.

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Cybersecurity Risks in Cryptocurrency Space

Saturday. December 28 at 6:00 AM

Sheila Warren, head of Crypto Council for Innovation, fell victim to a social media hack on X (formerly Twitter), promoting the $SPELL token. The incident raised concerns about vulnerabilities in crypto-advocacy communities. The hacked post, now deleted, advertised an AI and crypto venture, signaling a scam. CCI promptly issued a warning, clarifying the fraudulent nature of the post. Warren's account was cleared of unauthorized $SPELL promotions by December 27. The hack coincided with Warren's resignation as CEO, succeeded by Ji Kim. Despite the management change, CCI expressed confidence in navigating regulatory challenges. The industry anticipates a shift in regulatory approach under incoming SEC Chair Paul Atkins. The incident underscores the importance of cybersecurity in the cryptocurrency realm amidst evolving regulations and the need for secure digital asset management.

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