Cryptocurrency wallet providers are getting more sophisticated, but so are bad actors — which means the battle between security and threats is at a deadlock, says a hardware wallet firm executive.
“It will always be a cat and mouse game,” Ledger chief experience officer Ian Rogers told Cointelegraph when describing the constant race between crypto wallet firms adding new security features and hackers finding more advanced ways to access victims’ wallets.
Rogers said, unfortunately, the most straightforward scams work best because scammers rely on people making simple mistakes.
“People give their 24-word phrases to people every day, so as long as that happens, then they are going to go for the low-cost tax,” he said, adding:
“Anyone who asks for your 24 words is a criminal.”
Rogers highlighted a common crypto scam where victims get tricked by replies under “any post on Twitter about crypto,” with messages like “DM me, and I’ll help you.”
“You know that scammers are always asking you for your 24 words,” Rogers said. CertiK chief business officer Jason Jiang recently told Cointelegraph that being aware of phishing attacks on social media can drastically increase a user’s crypto security.
Sometimes, scammers hijack the accounts of well-known industry figures to post malicious links, making it even harder for users to spot the scam.
In September 2023, Ethereum co-founder Vitalik Buterin’s account was compromised, leading to a fake NFT giveaway that tricked followers into clicking — only to drain over $691,000 from their wallets.
Rogers emphasized that this will always be the case, just as bad actors aren’t limited to crypto — scams like fake emails from the “Nigerian president” have been around for years.
“The cost of the attack is always commensurate with the size of the prize, right?” Rogers said. In 2024, crypto hacks jumped 15% from 2023, with over $3 billion stolen.
Meanwhile, pig butchering scams have emerged as one of the most pervasive threats to crypto investors, with losses on the Ethereum network costing the industry $5.5 billion across 200,000 identified cases in 2024.
Pig butchering is a type of phishing scheme that involves prolonged and complex manipulation tactics to trick investors into willingly sending their assets to fraudulent crypto addresses.
A Russian-Israeli citizen allegedly involved in the $190 million Nomad bridge hack will soon be extradited to the US after he was reportedly arrested at an Israeli airport while boarding a flight to Russia.
Alexander Gurevich will be investigated for his alleged involvement in several “computer crimes,” including laundering millions of dollars and transferring stolen property allegedly connected to the Nomad Bridge hack in 2022, The Jerusalem Post reported on May 5.
Gurevich returned to Israel from an overseas trip on April 19 but was ordered to appear before the Jerusalem District Court for an extradition hearing soon after, according to the report.
On April 29, Gurevich changed his name in Israel’s Population Registry to “Alexander Block” and received a passport under that name at Israel’s Ben-Gurion Airport the next day.
He was arrested at the same airport two days later, on May 1, while waiting to board a flight to Russia.
Gurevich allegedly identified a vulnerability in the Nomad bridge, which he exploited and stole roughly $2.89 million worth of tokens from in August 2022.
Gurevich allegedly reached out to a Nomad executive on Telegram
Prosecutors allege that shortly after the hack, Gurevich messaged Nomad’s chief technology officer, James Prestwich, on Telegram using a fake identity, admitting that he had been “amateurishly” seeking a crypto protocol to exploit.
He allegedly apologized for “the trouble he caused Prestwich and his team” and voluntarily transferred about $162,000 into a recovery wallet the company had set up.
Prestwich told Gurevich that Nomad would pay him 10% of the value of the assets he had stolen, to which Gurevich responded that he would consult his lawyer. However, Nomad never heard back from him after that.
Alleged messages between Gurevich and Nomad’s James Prestwich were shared on X by Israel-based Walla News journalist Yoav Itiel. Source: Yoav Itiel
At some point during the negotiations, Gurevich demanded a reward of $500,000 for identifying the vulnerability.
US federal authorities filed an eight-count indictment against Gurevich in the Northern District of California on Aug. 16, 2023, in addition to obtaining a warrant for his arrest. California is where the team behind the Nomad bridge is based.
The money laundering charges that Gurevich faces carry a maximum of 20 years, significantly harsher than what he would face in Israel.
Gurevich is believed to have arrived in Israel a few days before the $190 million exploit occurred, prompting Israeli officials to believe he carried out the attack while in Israel.
For much of its history, the trade union movement’s main opponent has been the Conservative Party. But now it finds itself taking on a different type of adversary – one it might describe as a wolf in sheep’s clothing.
The Reform UK leader has been sweet-talking the trade unions, speaking their language and brandishing their leaflets in public in what appears to his critics to be a new opportunistic strategy.
Farage’s courting of union members has alarmed the movement’s leaders – so much so that Sky News understands the executive of the Trades Union Congress (TUC), which represents unions across the country, has been holding meetings to draw up a strategy on how best to combat his appeal and more broadly, the far-right.
Over the weekend, as the two main parties were processing the battering they received in the local elections largely courtesy of Farage’s party, Unison’s general secretary Christina McAnea urged members of councils now controlled by Reform to join a union.
“Unions are there to ensure no one can play fast and loose with the law,” she said, after Farage threatened to sack staff working in areas such as diversity or climate change.
‘Political fraud’
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Paul Nowak, the general secretary of the TUC, has begun to step up his criticism of the former UKIP leader – accusing him of “cosplaying as a champion of working people”.
“He is not on the side of the working people,” he tells Sky News. “He’s on the side of bad bosses who want to treat staff like disposable labour.
“Unions will continue to expose him for the political fraud he is.”
At the moment, that campaign is largely focused on highlighting Farage’s voting record – in particular his decision to oppose the Employment Rights Bill, legislation unions say they have wanted for decades.
The bill offers protection from unfair dismissal from the first day of employment and sick pay for all workers from the first day of absence, among other measures.
The TUC says the bill is incredibly popular – and not just among Labour voters.
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According to a poll it conducted of more than 21,000 people with campaign group Hope Not Hate, banning zero hours contracts is supported by more than seven in 10 UK voters – including two in three Reform voters from the 2024 election.
“People are going to find there are improvements to their life and work,” an insider tells Sky News. “We want them to understand who was for it, and who was against it.”
The TUC has also begun promoting videos on social media in which workers in the electric vehicle industry accuse Farage of threatening their jobs.
Farage’s response to the bill has been to claim that a clause within in that gives workers protection from third party harassment could herald the end of “pub banter”.
‘There has always been fellow feeling with unions’
But Gawain Towler, an ex-Reform press officer who has worked on and off for Farage for 20 years, insists his former boss isn’t against workers’ rights – he’s just opposed to Labour’s bill.
“Reform don’t see it as a workers rights’ bill – we think it takes away opportunities for work because it scares people away from employing people,” he says.
Image: Nigel Farage campaigning during the local elections in Scunthorpe.
Pic: Reuters
He believes “mass migration” is the real obstacle to better wages and job security, and argues net zero policies are “costing union members their jobs”.
The government may point to a recent study suggesting the net zero sector has grown by 10% over the past year, supporting the equivalent of 951,000 full-time jobs.
For Farage’s allies, his courting of union members is neither disingenuous nor new.
“He’s anti-union management, he’s not anti-union,” says Towler, who noted Farage’s friendship with the late union leader and Brexit advocate Bob Crow.
“Nigel has always been a free trader, but he’s never been deeply partisan, which is why he was able to start the Brexit Party. There has always been that fellow feeling with unions.”
Indeed, on one issue, a commonality is emerging between Reform and the GMB union.
While general secretary Gary Smith has criticised Farage for being “soft on Russia” and for voting against the Employment Rights Bill, there is an agreement between the pair over the impact of net zero.
Image: Members of Unite union protest at plans to close Grangemouth oil refinery.
Pic: PA
Although Unite has no common truck with Reform, it has warned there should be “no ban without a plan” when it comes to issuing new oil and gas licences.
‘Labour has one shot with workers’
For some unions, Labour’s position on certain issues has provided Reform with an opening.
Gawain Little, the general secretary of the General Federation of Trade Unions, tells Sky News the party risks leaving “space open for fakers like Farage to come along and pretend they have people’s interests at heart”.
Only a sense that austerity is over, likewise the cost of living crisis, will truly “challenge” the Reform leader, he says.
One GMB member says Farage’s strategy is “from the same playbook” as right-wing parties in Europe, such as the AfD in Germany and Georgia Meloni’s Brothers of Italy.
By “continuously legitimising” Reform by talking tough on migration, union activists who usually get the word out for Labour have been left demoralised.
Farage on the picket line?
The current distance with some unions did not start in government. It began in opposition, when Labour refused to back workers who were on strike and when the party did not endorse some candidates put forward by some of the more left-wing unions.
But so far, sources in Labour have dismissed Farage’s tactics as just words – and believe his previous anti-union rhetoric will weigh against him when he tries to court votes.
In fact, Mr Farage’s calls for the renationalisation of steel have been interpreted as him “trying to jump on the bandwagon” of Labour’s success.
However, Damian Lyons Lowe, the founder of pollster Survation, spots danger for Labour if Farage is able to successfully tilt in the direction of workers’ rights – especially if the government finds itself unable to follow.
He says taking the side of unions in an industrial dispute over pay would be an example of a classic “wedge” strategy that Farage can deploy to back Labour into a corner.
And given the government’s initial 2.8% pay offer to public sector workers is below that reportedly drawn up by the independent pay review body for NHS workers and teachers, there is the very real prospect this scenario could arise.
“It could pose a real threat to Labour,” Lyons Lowe says, with union members in “post-industrial” areas potentially receptive to a message of “protectionism, industrial revival, and national self-sufficiency”.
Could what started with Farage brandishing leaflets end up with him joining the picket line?
While one union insider doesn’t think Farage will ultimately convince union leaders, members may be tempted.
The Starmer government has “one shot to deliver for workers”, they warn.
“If they don’t, Farage and Reform are waiting in the wings.”
The new “Digital Asset Market Structure Discussion Draft” introduced by House Republicans on May 5 could work to reduce the dominance of large crypto firms and promote more participation in the broader market, according to an executive from Paradigm.
The discussion draft, led by the House agricultural and financial services committee chairs Glenn Thompson and French Hill, is an “incremental, albeit meaningful, rewrite” of the Financial Innovation and Technology for the 21st Century Act (FIT21), Paradigm’s vice president of regulatory affairs Justin Slaughter said in a May 5 X post.
One-pager of the digital asset market structure discussion draft submitted by House Republicans on May 5. Source: US House Agriculture Committee
One of the major changes from FIT21 is that the draft defines an affiliated person as anyone who owns more than 1% of a digital commodity issued by the project — down from 5% in the FIT21 bill — a move Slaughter said may curb the influence of big crypto firms and lead to more participation in the crypto market.
“This is a portent of the entire bill. There are often criticisms of crypto being too dominated by a few large firms. This bill makes clear the regulatory regime proposed is going to push against that fact and strongly encourage more small-d ‘democratization’ of the space.”
The draft also defines a “mature blockchain system” as one that, together with its related digital commodity, is not under the “common control” of any person or group.
The Securities and Exchange Commission would be the main authority regulating activity on crypto networks until they become sufficiently decentralized, Slaughter noted.
The draft also clarified that decentralized finance trading protocols are those that enable users to engage in a financial transaction in a “self-directed manner.” Protocols that meet this criterion are exempt from registering as digital commodity brokers or dealers.
The draft also referred to digital commodities as “investment contract assets” to distinguish their treatment from stocks and other traditional assets under the Howey test.
According to Slaughter’s analysis, securities laws won’t be triggered unless the secondary sale of tokens also transfers ownership or profit in the underlying business.
Crypto firms would also have a path to raise funds under the SEC’s oversight while also having a “clear process” to register their digital commodities with the Commodity Futures Trading Commission, the committee members said in a separate May 5 statement.
Joint rulemaking, procedures, or guidelines related to crypto asset delisting must be established by the CFTC and SEC should a registered asset no longer comply with rules laid out by the regulators.
A ‘clear opportunity’ to advance crypto innovation, rules once and for all
Speaking about the need for a comprehensive crypto regulatory framework, the House committee members said crypto is a “clear opportunity” to advance innovation in the US — most notably through modernizing America’s financial infrastructure and reinforcing US dollar dominance.
The Republicans criticized the previous Biden administration and the Gary Gensler-led SEC for adopting a regulation-by-enforcement strategy rather than creating clear rules for market participants.
Many crypto firms were stuck in “legal limbo” as a result of the unclear rules, which pushed some industry players overseas, where clearer rules exist, the House committee members said.
“America needs to be the powerhouse for digital asset investment and innovation. For that to happen, we need a commonsense regulatory regime,” said Dusty Johnson, chairman of the subcommittee on commodity markets, digital assets and rural development.
Slaughter added: “This is the bill that will, finally, provide a clear regulatory regime on crypto that many have been calling for.”
Republicans already facing roadblocks over discussion draft
House Financial Services Committee Ranking Member Maxine Waters plans to block a Republican-led event discussing digital assets on May 6, a Democratic staffer told Cointelegraph.
The hearing, “American Innovation and the Future of Digital Assets,” is expected to discuss the new crypto markets draft discussion paper pitched by Thompson, Hill, and other committee members.
However, according to the unnamed Democratic staffer, the current rules require all members of the House Financial Services Committee to agree on such hearings.