NymVPN launches fully decentralized VPN amid privacy crackdown
Privacy protocol Nym has launched NymVPN, which it describes as the “world’s most secure VPN” and says will help protect users from government, corporate and AI surveillance.The release comes amid an increasingly hostile global environment for privacy-focused products — one that is seeing governments crack down on privacy projects and demand backdoors to encryption.The decentralized VPN, which launched on March 13, uses the Nym protocol’s “mixnet” to keep users fully anonymous and ensure no metadata can be linked to any specific user, according to a press release shared with Cointelegraph.Halpin and Nym security adviser Chelsea Manning sat down with Jonathan DeYoung, co-host of Cointelegraph’s The Agenda podcast, to discuss the release, the importance of privacy and how Nym plans to navigate what seems to be an increasingly precarious privacy space.How NymVPN’s mixnet worksHalpin and Manning appeared on The Agenda podcast back in December 2023 to discuss what was then their upcoming VPN project. Halpin explained that mixnets work by sending encrypted data across multiple servers while also adding “a bit of fake data” to throw off whoever may be attempting to surveil the traffic, such as an advanced AI algorithm.“Each packet is like a card, and it like shuffles the pack of cards and then sends it to the next server and sends it to the next server,” Halpin explained.This is in contrast with traditional centralized VPNs, where everything a user does is routed through the VPN provider’s servers and where customers must put their trust in a specific company. Halpin said:“If you send your VPN data to ExpressVPN, NordVPN and Mullvad VPN, they know everything about you. They know your IP address. They connect to your billing information. They know what websites you’re going to. It’s actually kind of scary.”Developing privacy software amid global crackdownsA few months after their Agenda podcast appearance, Alexey Pertsev, a developer for crypto mixer Tornado Cash, was convicted of money laundering charges and sentenced for his role in developing the privacy protocol — a move that sent shockwaves through the industry.According to Halpin, Nym is less likely to face the same sort of legal trouble because it’s not financial infrastructure. “In all countries except a few repressive ones, VPNs are legal, at least for now,” he said. “They fall under what’s called third-party intermediary lack of liability. […] We are not liable, at least under US law, for shipping bits from point A to point B.”Related: AI makes it even easier for governments to surveil you — Nym CEOThe nature of operating a fully decentralized VPN that can be used entirely anonymously means there is no way to prevent anyone from using it for whatever reasons they want to. Manning said it is not Nym’s role to be “the arbiter or the determiner of what is and is not nefarious.” She added:“It’s not possible in a fully decentralized environment to stop them [bad actors]. Like we don’t have a way to. If we did, I mean, we would be centralized.”More recently, various governments have pushed developers to implement backdoors in their encrypted products. Apple withdrew its end-to-end-encrypted iCloud service from the UK market after the government demanded a backdoor, while the US Federal Bureau of Investigation recently told Forbes it wants “responsibly managed encryption,” where “U.S. tech companies can provide readable content in response to a lawful court order.”Halpin and Manning said that if a government were to ever attempt to shut NymVPN down or arrest its developers, the Nym network is decentralized, so it should be able to continue running as usual. “In theory, we should be able to get run over with a car, and the network would keep operating,” Halpin said.Who will use NymVPN?The Nym team was in Ukraine in 2024 to demo the VPN and present it to the Ukrainian government, and a representative from the humanitarian NGO Doctors Without Borders spoke at the March 13 launch event. Halpin also shared that the team has had conversations with people in Syria.The Nym team demos NymVPN in Ukraine. Source: NymHowever, an anonymous and decentralized VPN is just that — anonymous and decentralized. This means the team behind it has no way of knowing who is actually using it and what they are using it for, only that it is being used.As Manning put it, “One of the problems with that question is that if people are using the technology, if they don’t tell us that they’re using the technology, we won’t know.”Magazine: Cypherpunk AI — Guide to uncensored, unbiased, anonymous AI in 2025
Long-term Ethereum accumulation could unwind if ETH price falls below $1.9K — Analyst
Ethereum’s native token, Ether (ETH), continues to consolidate under $2,000, which some traders view as a psychological level. Ether price slipped below this range on March 10, and the altcoin continues to trade at its lowest value since October 2023.Ethereum 4-hour chart. Source: Cointelegraph/TradingViewEther price has also lost market value with respect to other major altcoins, with XRP price reaching its highest level against ETH in five years on March 15. The real question among investors is whether ETH is capable of recapturing a portion of its recent losses or whether traders will capitulate if the price falls below $1,900.Ethereum traders could jump ship if price falls below $1,900 According to data from IntoTheBlock, a data analytics platform, Ethereum holders accumulated 3.56 million ETH between $1,900 and $1,843, with an average price of $1,871. Therefore, the current accumulation value currently stands at $6.65 billion. This indicates that ETH’s price has a strong support level between $1,900 and $1,843, which can potentially act as the bullish reversal zone.Ethereum In/Out of the Money chart. Source: X.comHowever, if Ether drops below $1,843, data points to the possibility of rising capitulation fears. Capitulation is a market sentiment where investors tend to panic, selling their positions at a loss during a sharp market correction. If ETH consolidates for a prolonged period under $1,843, the likelihood of a deeper correction increases exponentially. Below $1,843, the size and volume of ETH accumulation are significantly lower, which further illustrates the importance of the $1,900 to $1,843 support range. Similarly, the percentage of Ethereum addresses under profit dropped to its lowest level since the start of the decade. It is the lowest value since December 2022 at just under 46%.ETH: Percentage of addresses in Profit. Source: XA low percentage of profitable addresses has historically indicated a price bottom for Ethereum. Given the high ETH accumulation and fewer profitable addresses, these factors may act as bullish signals. As a result, the likelihood of Ethereum consolidating below $1,843 in the long term is decreasing.Hitesh Malviya, the founder of DYOR crypto, said it is not a “great time to bearish on ETH.” In an X post, Malviya highlighted the recent rise of real-world assets (RWAs) in the industry, with a 50.9% increase in growth over the past 30 days and an 850% yearly increase, with Ethereum and ZKsync capturing more than 80% of the total market share. RWA’s market share on L1s. Source: XRelated: Bitcoin ‘bullish cross’ with 50%-plus average returns flashes againEthereum long/short ratio indicates a neutral marketAlphractal, a crypto data analysis website, reviewed Ether’s current market sentiment based on the long/short ratio, a metric to evaluate the proportion of futures traders betting for price increases (long) versus decreases (shorts). Whales vs. Retail ratio heatmap. Source: XAccording to the chart above, the largest investors are more inclined toward taking long positions, whereas smaller investors are in the process of deleveraging. Deleveraging means unwinding risky, borrowed positions, which lowers market volatility and interest in leveraged trading.With the current ratio at 1.3, the long/short ratio indicates a balanced but cautious market. Alphractal added,“This indicates that, in the short term, Ethereum is experiencing low volatility and low interest in leverage, which may leave many traders exhausted and impatient.”Related: Ethereum onchain data suggests $2K ETH price is out of reach for nowThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Not every AI agent needs its own cryptocurrency: CZ
Artificial intelligence agents need to prioritize their intrinsic utility, not the launch of their in-house native tokens to raise funds.AI agent-related tokens have significantly declined over the past month, as their cumulative market capitalization decreased by over 21% to the current $27 billion, according to CoinMarketCap data.While their continued decline may be part of the broader crypto market correction, another reason could be a lack of focus on intrinsic utility, according to Changpeng Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange.30-day market cap chart of AI agent tokens. Source: CoinMarketCapZhao wrote in a March 17 X post:“While crypto is the currency for AI, not every agent needs its own token. Agents can take fees in an existing crypto for providing a service.”“Launch a coin only if you have scale. Focus on utility, not tokens,” he added.Source: Changpeng ZhaoZhao’s comments come during a significant downtrend for AI cryptocurrencies, which lost over 61% of their peak $70.4 billion market capitalization in the three months since they started to decline on Dec. 7.AI agent tokens, market cap, 1-year chart. Source: CoinmarketcapNumerous venture capital firms, including Pantera Capital and Dragonfly, are excited about the future of AI agents but have yet to invest in them, according to a panel discussion at Consensus 2025 in Hong Kong.Related: 0G Foundation launches $88M fund for AI-powered DeFi agentsAI agents are performing autonomous blockchain transactions, exchange servicesAI agents are gaining increasing interest thanks to their promise of increasing online productivity, streamlining decision-making processes and creating new financial opportunities.AI agents are already executing autonomous transactions on the blockchain without direct human input.The concept gained attention following a Dec. 16 post by Luna, an AI agent on Virtuals Protocol, which sought image-generation services.LUNA virtual protocol, X post. Source: LunaLuna also received an X response from STIX Protocol, another autonomous AI agent, which generated the requested images.LUNA payments to STIX protocol. Source: BasescanAfter the images were generated, Luna paid STIX Protocol’s AI agent $1.77 worth of VIRTUAL tokens on Dec. 16, onchain data shows.Yet, some of the demand for AI agents has since faded, as Virtuals Protocol’s revenue fell 97%, Cointelegraph reported on Feb. 28.Related: Libra, Melania creator’s ‘Wolf of Wall Street’ memecoin crashes 99%Industry watchers foresee a year of significant upside for the emerging field of AI cryptocurrencies.AI agents launch platform ai16z and decentralized trading protocol Hyperliquid are “poised for growth in 2025,” Alvin Kan, chief operating officer of Bitget Wallet, told Cointelegraph. “Emerging narratives like AI-driven investments, decentralized AI agents and tokenized assets hint at a tech-driven shift, though with added risk,” he said.Magazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler’s Digest, March 9 – 15
Solana’s 5th birthday: From pandemic origins to US crypto stockpile
Layer-1 blockchain Solana is marking its fifth anniversary since launching its mainnet in 2020. Over the years, it has become one of the most active blockchain networks by transaction volume and is among the few cryptocurrencies proposed for inclusion in a US digital asset reserve.Since the first Solana block was built on March 16, 2020, the network has processed more than 408 billion transactions and nearly $1 trillion worth of value on decentralized exchanges — establishing itself as one of the industry’s leading layer-1 blockchains.Source: SolanaHere are some of the Solana ecosystem’s most notable milestones since it was launched by Solana Labs CEO Anatoly Yakovenko and Solana co-founder Raj Gokal to the public in 2020.Solana was born just as the COVID-19 pandemic hitWhile Solana’s origins can be traced back to late 2017 when Yakovenko released a white paper outlining a timekeeping method for blockchains called “Proof of History,” but Solana wasn’t launched until March 2020 — right as the world started to enact emergency measures against the COVID-19 pandemic.The high-speed, low-cost layer 1 Solana blockchain launch was assisted by crypto-focused venture capital firm Multicoin Capital, leading a financing round for Solana, which brought in roughly $20 million worth of private token sales in July 2019.Source: OKXAdditional funding poured in soon after, and within 20 months of launching, Solana was hailed as a potential “Ethereum killer” as it soared to a $77.8 billion market cap at the peak of the 2020-2021 bull cycle.Solana hit hard by 2022 bear market, FTX collapse — but bounced backThe 2022 bear market, coupled with the catastrophic collapse of crypto exchange FTX, tanked Solana’s market cap to $3 billion — a whopping 96% fall from its previous peak — by late 2022.Sam Bankman-Fried’s former firm purchased around 58 million Solana tokens — currently worth $7.4 billion — from Solana Labs and the Solana Foundation. Solana was “by far the most serious” layer 1 that FTX was helping scale, Fortune said in an April 2022 report.FTX filed for Chapter 11 bankruptcy on Nov. 11, 2022, and is still in the process of unlocking hundreds of millions of dollars worth of staked Solana tokens from FTX’s wallets. Solana’s price fell to $8.30 on Dec. 29, 2022.Despite the setback, 2023 marked the start of Solana’s impressive comeback, which saw its market cap rise nearly 50-fold from $3 billion to over $140 billion by Jan. 19, 2025. Memecoin craze takes Solana adoption to the next levelOne of the biggest reasons behind Solana’s comeback was the crypto memecoin craze that took place between late 2023 and 2024 — a $100 billion market that Solana dominated.Several Solana memecoins such as Bonk (BONK), Dogwifhat (WIF), Fartcoin (FARTCOIN) and Pudgy Penguins (PENGU) rose to multibillion-dollar market caps in early 2024 — around the time Solana memecoin launchpad Pump.fun became one of the most popular crypto platforms for memecoin lovers. Pump.fun alone has raked in over $540 million in revenue over the last 12 months and even surpassed Ethereum over 24-hour intervals at some points.Solana is home to many of the largest memecoins by market cap. Source: CoinGeckoNo Solana memecoin, however, drew more attention than the Official Trump (TRUMP) token launched by now-US President Donald Trump’s inner circle on Jan. 17 — which soared to a $14.6 billion market within two days before it came crashing down.The TRUMP memecoin briefly pushed Solana decentralized finance (DeFi) total value locked to $14.2 billion, trailing only Ethereum, DefiLlama data shows. happy 5th birthday @solana 🥳congratulations on 5 years of building & shipping the greatest tech to ever grace our industry 🫶manlets on top 🎉 pic.twitter.com/Clkv3eEpn9— pump.fun (@pumpdotfun) March 16, 2025The Solana blockchain has also become the third largest adopter of stablecoins behind Ethereum and Tron.Solana unveils the first major crypto phoneIn May 2023, Solana released the first major crypto phone, called “Solana Saga.”Sales for the Android device with the built-in crypto wallet started slow but skyrocketed after a 30 million BONK airdrop enticed memecoin enthusiasts to make a purchase.Solana also unveiled a newer, shinier Solana “Seeker” smartphone last September to better facilitate memecoin trading and accrue token rewards.While most reviewers say the Solana phones lack the technical capabilities of an iPhone or Google Pixel, Solana has seen over 140,000 presales for the two products.The Solana Seeker phone is currently priced at $500.Hardware specifications of the Solana Seeker phone. Source: Solana MobileSolana, however, has also been plagued with several network outages over its five-year span — halting block production for 20 hours in some instances. Solana validators have been forced to restart the network on several occasions when network activity surged.A new independent validator client called Firedancer is scheduled to go live on Solana’s mainnet sometime in 2025 to address Solana’s client diversity woes. It has been touted as a superior solution to “QUIC” — a Google-developed data transfer protocol that has failed to process transactions on Solana over a dozen times.Solana set to be included in Trump’s Digital Asset StockpileThe Trump administration says it will include Solana in the Digital Asset Stockpile, which it confirmed through an executive order on March 7. It is the youngest cryptocurrency on the list. The Digital Asset Stockpile will initially use cryptocurrency forfeited in government criminal cases.Related: Solana proposal to cut inflation rate by up to 80% fails to passThe US doesn’t appear to hold Solana, according to crypto analytics firm Arkham Intelligence. However, the White House said it would complete an audit of crypto asset holdings.Trump initially announced that Solana would become a US reserve asset on March 2.Source: Donald TrumpHowever, he later established a Bitcoin-only reserve and the Digital Asset Stockpile, which looks like it will include Solana in addition to Ether (ETH), XRP (XRP) and Cardano (ADA).Solana is currently priced at $128.17 — the sixth-largest cryptocurrency with a market cap of $64.5 billion. Solana is down 56% from its all-time high as the broader market continues to navigate through recession fears and weakened market sentiment of late.Magazine: Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?
Four suspects charged in home invasion of streamer Amouranth
Online streamer Amouranth, whose real name is Kaitlyn Siragusa, recently made headlines after being the victim of a terrifying home invasion. The streamer, who is known for her popular online content, was held at gunpoint by several individuals who demanded that she hand over the private keys to her cryptocurrency.
According to reports, four suspects have been charged in connection with the incident. Dylan Nesho Campbell, Bryan Anthony Salazar Guerrero, and two other suspects between the ages of 16-17 have all been charged with aggravated kidnapping and aggravated robbery with a deadly weapon.
The incident occurred late at night on March 2, when several armed individuals entered Siragusa’s home, beat her, and held her at gunpoint. They demanded that she hand over her cryptocurrency, which she had previously disclosed to her online followers to be worth over $20 million.
Luckily, Siragusa’s husband was on speakerphone during the incident and was able to grab a handgun to defend himself and his wife. He also alerted law enforcement and fired three rounds at the assailants, likely injuring one of them before they fled the scene.
This is not the first time that crypto holders have been targeted for their digital assets. In January 2025, a UK court sentenced seven gang members for the kidnapping and extortion of a crypto investor. And just a few weeks ago, Ledger co-founder David Balland was kidnapped in France and held for a crypto ransom before being rescued by law enforcement.
These incidents highlight the growing trend of crypto-related crimes, including kidnappings and extortion. As the value of cryptocurrencies continues to rise, it is important for individuals to take extra precautions to protect their assets and personal safety.
Burning quantum-vulnerable BTC is the best option — Jameson Lopp
Jameson Lopp, the chief security officer at Bitcoin (BTC) custody company Casa, recently argued against allowing quantum recovery of lost BTC and said that burning these coins to protect the integrity of the protocol was the preferable option.According to Lopp, allowing individuals or institutions with quantum computers to recover lost coins violates the Bitcoin network’s properties of censorship resistance, transaction immutability, and conservatism.In a March 16 article, the crypto executive wrote that allowing quantum recovery is not good for anyone. Lopp added:”Allowing quantum recovery of bitcoin is tantamount to wealth redistribution. What we would be allowing is for bitcoin to be redistributed from those who are ignorant of quantum computers to those who have won the technological race to acquire quantum computers.””It is hard to see a bright side to that scenario,” the executive continued before concluding that quantum recovery can only harm the security of the Bitcoin network.The threat posed by quantum computers to Bitcoin continues to be hotly debated, with some arguing that the threat to modern encryption is decades away, others arguing that quantum computers will never be practical, and some warning that the threat is imminent.Jameson Lopp discusses the risks posed by quantum computers at the Future of Bitcoin Conference in 2024. Source: Future of Bitcoin ConferenceRelated: Crypto, quantum computing on collision course as Microsoft debuts new chipThe great quantum scare of 2024In October 2024, researchers at Shanghai University claimed they broke encryption standards used in military and banking applications using a quantum computer.However, YouTuber “Mental Outlaw” later asserted that these claims were overblown and that the researchers did not break modern encryption standards.The YouTuber said that the quantum computer used by the research team could only factorize the integer 2,269,753, which set a new record for quantum computers but still lagged behind some classical computers.Mental Outlaw added that the device used in the experiment could only break a 22-bit key, while the record set by a classical computer was breaking an 892-bit key.Modern encryption key sizes can range anywhere between 2048 to 4096 bits, with the option of extending key sizes in the future to make them even more secure.Magazine: Bitcoin vs. the quantum computer threat: Timeline and solutions (2025–2035)
Can AI bots steal your crypto? The rise of digital thieves
What are AI bots? AI bots are self-learning software that automates and continuously refines crypto cyberattacks, making them more dangerous than traditional hacking methods.At the heart of today’s AI-driven cybercrime are AI bots — self-learning software programs designed to process vast amounts of data, make independent decisions, and execute complex tasks without human intervention. While these bots have been a game-changer in industries like finance, healthcare and customer service, they have also become a weapon for cybercriminals, particularly in the world of cryptocurrency.Unlike traditional hacking methods, which require manual effort and technical expertise, AI bots can fully automate attacks, adapt to new cryptocurrency security measures, and even refine their tactics over time. This makes them far more effective than human hackers, who are limited by time, resources and error-prone processes.Why are AI bots so dangerous?The biggest threat posed by AI-driven cybercrime is scale. A single hacker attempting to breach a crypto exchange or trick users into handing over their private keys can only do so much. AI bots, however, can launch thousands of attacks simultaneously, refining their techniques as they go.Speed: AI bots can scan millions of blockchain transactions, smart contracts and websites within minutes, identifying weaknesses in wallets (leading to crypto wallet hacks), decentralized finance (DeFi) protocols and exchanges.Scalability: A human scammer may send phishing emails to a few hundred people. An AI bot can send personalized, perfectly crafted phishing emails to millions in the same time frame.Adaptability: Machine learning allows these bots to improve with every failed attack, making them harder to detect and block.This ability to automate, adapt and attack at scale has led to a surge in AI-driven crypto fraud, making crypto fraud prevention more critical than ever.In October 2024, the X account of Andy Ayrey, developer of the AI bot Truth Terminal, was compromised by hackers. The attackers used Ayrey’s account to promote a fraudulent memecoin named Infinite Backrooms (IB). The malicious campaign led to a rapid surge in IB’s market capitalization, reaching $25 million. Within 45 minutes, the perpetrators liquidated their holdings, securing over $600,000. How AI-powered bots can steal cryptocurrency assets AI-powered bots aren’t just automating crypto scams — they’re becoming smarter, more targeted and increasingly hard to spot.Here are some of the most dangerous types of AI-driven scams currently being used to steal cryptocurrency assets:1. AI-powered phishing botsPhishing attacks are nothing new in crypto, but AI has turned them into a far bigger threat. Instead of sloppy emails full of mistakes, today’s AI bots create personalized messages that look exactly like real communications from platforms such as Coinbase or MetaMask. They gather personal information from leaked databases, social media and even blockchain records, making their scams extremely convincing. For instance, in early 2024, an AI-driven phishing attack targeted Coinbase users by sending emails about fake cryptocurrency security alerts, ultimately tricking users out of nearly $65 million.Also, after OpenAI launched GPT-4, scammers created a fake OpenAI token airdrop site to exploit the hype. They sent emails and X posts luring users to “claim” a bogus token — the phishing page closely mirrored OpenAI’s real site. Victims who took the bait and connected their wallets had all their crypto assets drained automatically.Unlike old-school phishing, these AI-enhanced scams are polished and targeted, often free of the typos or clumsy wording that is used to give away a phishing scam. Some even deploy AI chatbots posing as customer support representatives for exchanges or wallets, tricking users into divulging private keys or two-factor authentication (2FA) codes under the guise of “verification.”In 2022, some malware specifically targeted browser-based wallets like MetaMask: a strain called Mars Stealer could sniff out private keys for over 40 different wallet browser extensions and 2FA apps, draining any funds it found. Such malware often spreads via phishing links, fake software downloads or pirated crypto tools.Once inside your system, it might monitor your clipboard (to swap in the attacker’s address when you copy-paste a wallet address), log your keystrokes, or export your seed phrase files — all without obvious signs.2. AI-powered exploit-scanning botsSmart contract vulnerabilities are a hacker’s goldmine, and AI bots are taking advantage faster than ever. These bots continuously scan platforms like Ethereum or BNB Smart Chain, hunting for flaws in newly deployed DeFi projects. As soon as they detect an issue, they exploit it automatically, often within minutes. Researchers have demonstrated that AI chatbots, such as those powered by GPT-3, can analyze smart contract code to identify exploitable weaknesses. For instance, Stephen Tong, co-founder of Zellic, showcased an AI chatbot detecting a vulnerability in a smart contract’s “withdraw” function, similar to the flaw exploited in the Fei Protocol attack, which resulted in an $80-million loss. 3. AI-enhanced brute-force attacksBrute-force attacks used to take forever, but AI bots have made them dangerously efficient. By analyzing previous password breaches, these bots quickly identify patterns to crack passwords and seed phrases in record time. A 2024 study on desktop cryptocurrency wallets, including Sparrow, Etherwall and Bither, found that weak passwords drastically lower resistance to brute-force attacks, emphasizing that strong, complex passwords are crucial to safeguarding digital assets.4. Deepfake impersonation botsImagine watching a video of a trusted crypto influencer or CEO asking you to invest — but it’s entirely fake. That’s the reality of deepfake scams powered by AI. These bots create ultra-realistic videos and voice recordings, tricking even savvy crypto holders into transferring funds. 5. Social media botnetsOn platforms like X and Telegram, swarms of AI bots push crypto scams at scale. Botnets such as “Fox8” used ChatGPT to generate hundreds of persuasive posts hyping scam tokens and replying to users in real-time.In one case, scammers abused the names of Elon Musk and ChatGPT to promote a fake crypto giveaway — complete with a deepfaked video of Musk — duping people into sending funds to scammers. In 2023, Sophos researchers found crypto romance scammers using ChatGPT to chat with multiple victims at once, making their affectionate messages more convincing and scalable.Similarly, Meta reported a sharp uptick in malware and phishing links disguised as ChatGPT or AI tools, often tied to crypto fraud schemes. And in the realm of romance scams, AI is boosting so-called pig butchering operations — long-con scams where fraudsters cultivate relationships and then lure victims into fake crypto investments. A striking case occurred in Hong Kong in 2024: Police busted a criminal ring that defrauded men across Asia of $46 million via an AI-assisted romance scam. Automated trading bot scams and exploits AI is being invoked in the arena of cryptocurrency trading bots — often as a buzzword to con investors and occasionally as a tool for technical exploits.A notable example is YieldTrust.ai, which in 2023 marketed an AI bot supposedly yielding 2.2% returns per day — an astronomical, implausible profit. Regulators from several states investigated and found no evidence the “AI bot” even existed; it appeared to be a classic Ponzi, using AI as a tech buzzword to suck in victims. YieldTrust.ai was ultimately shut down by authorities, but not before investors were duped by the slick marketing. Even when an automated trading bot is real, it’s often not the money-printing machine scammers claim. For instance, blockchain analysis firm Arkham Intelligence highlighted a case where a so-called arbitrage trading bot (likely touted as AI-driven) executed an incredibly complex series of trades, including a $200-million flash loan — and ended up netting a measly $3.24 in profit.In fact, many “AI trading” scams will take your deposit and, at best, run it through some random trades (or not trade at all), then make excuses when you try to withdraw. Some shady operators also use social media AI bots to fabricate a track record (e.g., fake testimonials or X bots that constantly post “winning trades”) to create an illusion of success. It’s all part of the ruse.On the more technical side, criminals do use automated bots (not necessarily AI, but sometimes labeled as such) to exploit the crypto markets and infrastructure. Front-running bots in DeFi, for example, automatically insert themselves into pending transactions to steal a bit of value (a sandwich attack), and flash loan bots execute lightning-fast trades to exploit price discrepancies or vulnerable smart contracts. These require coding skills and aren’t typically marketed to victims; instead, they’re direct theft tools used by hackers. AI could enhance these by optimizing strategies faster than a human. However, as mentioned, even highly sophisticated bots don’t guarantee big gains — the markets are competitive and unpredictable, something even the fanciest AI can’t reliably foresee.Meanwhile, the risk to victims is real: If a trading algorithm malfunctions or is maliciously coded, it can wipe out your funds in seconds. There have been cases of rogue bots on exchanges triggering flash crashes or draining liquidity pools, causing users to incur huge slippage losses. How AI-powered malware fuels cybercrime against crypto users AI is teaching cybercriminals how to hack crypto platforms, enabling a wave of less-skilled attackers to launch credible attacks. This helps explain why crypto phishing and malware campaigns have scaled up so dramatically — AI tools let bad actors automate their scams and continuously refine them based on what works.AI is also supercharging malware threats and hacking tactics aimed at crypto users. One concern is AI-generated malware, malicious programs that use AI to adapt and evade detection. In 2023, researchers demonstrated a proof-of-concept called BlackMamba, a polymorphic keylogger that uses an AI language model (like the tech behind ChatGPT) to rewrite its code with every execution. This means each time BlackMamba runs, it produces a new variant of itself in memory, helping it slip past antivirus and endpoint security tools.In tests, this AI-crafted malware went undetected by an industry-leading endpoint detection and response system. Once active, it could stealthily capture everything the user types — including crypto exchange passwords or wallet seed phrases — and send that data to attackers.While BlackMamba was just a lab demo, it highlights a real threat: Criminals can harness AI to create shape-shifting malware that targets cryptocurrency accounts and is much harder to catch than traditional viruses.Even without exotic AI malware, threat actors abuse the popularity of AI to spread classic trojans. Scammers commonly set up fake “ChatGPT” or AI-related apps that contain malware, knowing users might drop their guard due to the AI branding. For instance, security analysts observed fraudulent websites impersonating the ChatGPT site with a “Download for Windows” button; if clicked, it silently installs a crypto-stealing Trojan on the victim’s machine.Beyond the malware itself, AI is lowering the skill barrier for would-be hackers. Previously, a criminal needed some coding know-how to craft phishing pages or viruses. Now, underground “AI-as-a-service” tools do much of the work. Illicit AI chatbots like WormGPT and FraudGPT have appeared on dark web forums, offering to generate phishing emails, malware code and hacking tips on demand. For a fee, even non-technical criminals can use these AI bots to churn out convincing scam sites, create new malware variants, and scan for software vulnerabilities. How to protect your crypto from AI-driven attacks AI-driven threats are becoming more advanced, making strong security measures essential to protect digital assets from automated scams and hacks.Below are the most effective ways on how to protect crypto from hackers and defend against AI-powered phishing, deepfake scams and exploit bots:Use a hardware wallet: AI-driven malware and phishing attacks primarily target online (hot) wallets. By using hardware wallets — like Ledger or Trezor — you keep private keys completely offline, making them virtually impossible for hackers or malicious AI bots to access remotely. For instance, during the 2022 FTX collapse, those using hardware wallets avoided the massive losses suffered by users with funds stored on exchanges.Enable multifactor authentication (MFA) and strong passwords: AI bots can crack weak passwords using deep learning in cybercrime, leveraging machine learning algorithms trained on leaked data breaches to predict and exploit vulnerable credentials. To counter this, always enable MFA via authenticator apps like Google Authenticator or Authy rather than SMS-based codes — hackers have been known to exploit SIM swap vulnerabilities, making SMS verification less secure.Beware of AI-powered phishing scams: AI-generated phishing emails, messages and fake support requests have become nearly indistinguishable from real ones. Avoid clicking on links in emails or direct messages, always verify website URLs manually, and never share private keys or seed phrases, regardless of how convincing the request may seem.Verify identities carefully to avoid deepfake scams: AI-powered deepfake videos and voice recordings can convincingly impersonate crypto influencers, executives or even people you personally know. If someone is asking for funds or promoting an urgent investment opportunity via video or audio, verify their identity through multiple channels before taking action.Stay informed about the latest blockchain security threats: Regularly following trusted blockchain security sources such as CertiK, Chainalysis or SlowMist will keep you informed about the latest AI-powered threats and the tools available to protect yourself. The future of AI in cybercrime and crypto security As AI-driven crypto threats evolve rapidly, proactive and AI-powered security solutions become crucial to protecting your digital assets.Looking ahead, AI’s role in cybercrime is likely to escalate, becoming increasingly sophisticated and harder to detect. Advanced AI systems will automate complex cyberattacks like deepfake-based impersonations, exploit smart-contract vulnerabilities instantly upon detection, and execute precision-targeted phishing scams. To counter these evolving threats, blockchain security will increasingly rely on real-time AI threat detection. Platforms like CertiK already leverage advanced machine learning models to scan millions of blockchain transactions daily, spotting anomalies instantly. As cyber threats grow smarter, these proactive AI systems will become essential in preventing major breaches, reducing financial losses, and combating AI and financial fraud to maintain trust in crypto markets.Ultimately, the future of crypto security will depend heavily on industry-wide cooperation and shared AI-driven defense systems. Exchanges, blockchain platforms, cybersecurity providers and regulators must collaborate closely, using AI to predict threats before they materialize. While AI-powered cyberattacks will continue to evolve, the crypto community’s best defense is staying informed, proactive and adaptive — turning artificial intelligence from a threat into its strongest ally.
Crypto influencer sentenced to 45 months in prison for wire fraud
Thomas John Sfraga, also known as “TJ Stone,” received 45 months in prison for wire fraud and was ordered to pay more than $1.3 million in forfeiture as part of a scheme targeting crypto investors.In a March 14 notice, the US Justice Department said Sfraga was sentenced in the US District Court for the Eastern District of New York (EDNY) for wire fraud following a May 2024 guilty plea. Court filings stated that the influencer and podcaster claimed he was the owner of businesses — including Vandelay Contracting, a name based on a running joke from the television series Seinfeld — and the emcee of many crypto events in New York City.“[…] Sfraga convinced a victim to invest in a fictitious cryptocurrency ‘virtual wallet,’” said the Justice Department. “He promised the victims returns on their investments as high as 60% in three months. In reality, however, Sfraga used the money entrusted to him by the victims for his own benefit, to pay expenses, and to pay earlier victims and business associates.”Sfraga’s case was one of many involving crypto-related crimes continuing to be pursued in the jurisdiction following the appointment of John Durham as interim US Attorney by President Donald Trump. Braden John Karony, former CEO of SafeMoon, who also faces EDNY criminal charges, requested in February that his criminal trial for securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy be pushed based on the administration’s approach to crypto enforcement. The “Seinfeldian” scheme, according to Durham, was not the first time the crypto industry was connected to the popular sitcom. Comedian Larry David, co-creator of the show, starred in a Super Bowl ad for defunct cryptocurrency exchange FTX in 2022. He later said he was “an idiot” for endorsing the company and lost a lot of money after the price of specific tokens dropped.Related: Why comedian TJ Miller wants to be a trustworthy face for BitcoinSince Trump took office on Jan. 20, some high-profile defendants in criminal cases involving cryptocurrency have reportedly been looking into appealing to the US president for a pardon. Among those reportedly seeking pardons were former FTX CEO Sam Bankman-Fried, currently serving a 25-year sentence following a 2023 conviction, and former Binance CEO Changpeng Zhao, who served a four-month sentence in 2024 — though he denied reports of a potential pardon.Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
Price analysis 3/14: BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, LINK
Bitcoin (BTC) has risen back above the 200-day simple moving average ($83,754), indicating that the bulls are attempting a comeback. The failure of the bears to capitalize on the drop below the 200-day SMA shows that selling dries up at lower levels.However, Bitcoin may not be out of the woods yet. Crypto analyst Matthew Hyland said in a video posted to X that Bitcoin needs a weekly close above $89,000 to confirm a bottom. A move above $89,000 could liquidate roughly $1.60 billion in short positions, according to CoinGlass data. If that does not happen, Hyland warns that Bitcoin will fall into the $74,000 to $69,000 range.Crypto market data daily view. Source: Coin360Buyers have a challenging task ahead of them. The inflows of $13.3 million into US spot Bitcoin exchange-traded funds (ETFs) on March 12 could not be sustained, and the ETFs recorded outflows of $135.2 million on March 13, per Farside Investors data. This shows that the investors remain nervous and are pressing the sell button on new tariff threats and actions by US President Donald Trump.Could Bitcoin surge to $100,000, pulling select altcoins higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out.Bitcoin price analysisBitcoin bulls are trying to start a recovery but are expected to face significant resistance in the zone between the 200-day SMA and the 20-day exponential moving average ($86,717).BTC/USDT daily chart. Source: Cointelegraph/TradingViewIf buyers drive the price above the 20-day EMA, it will signal that the break below the 200-day SMA may have been a bear trap. The BTC/USDT pair could rise to the 50-day SMA ($93,876) and, after that, to the $100,000 psychological barrier.Conversely, if the price turns down from the overhead resistance zone with force, it will indicate that the bears are in command. That increases the likelihood of a drop to the vital support at $73,777. Buyers are expected to fiercely defend the $73,777 level because a drop below it may pull the pair to $67,000.Ether price analysisEther (ETH) has been trading in a tight range between $1,963 and $1,754, indicating a tough battle between the bulls and the bears.ETH/USDT daily chart. Source: Cointelegraph/TradingViewThe relative strength index (RSI) is showing early signs of forming a positive divergence. If the price rises above $1,963, the ETH/USDT pair could climb to the breakdown level of $2,111. This level may attract aggressive selling by the bears, but if the bulls persist, the pair could rally to the 50-day SMA ($2,597).This optimistic view will be negated if the price turns down from the current level of $2,111 and breaks below $1,754. That will signal the resumption of the downtrend. The pair may then nosedive to $1,500.XRP price analysisXRP (XRP) rebounded off the $2 support on March 11 and reached the 20-day EMA ($2.35) on March 13.XRP/USDT daily chart. Source: Cointelegraph/TradingViewThe bears are trying to halt the recovery at the 20-day EMA, but the bulls have kept up the pressure. That increases the possibility of a break above the 20-day EMA. The XRP/USDT pair may then rise to $2.64. If this level is cleared, the pair could rally to $3.Contrarily, if the price turns down sharply from the current level, it will suggest that the sentiment remains negative. The pair may retest the crucial $2 support, and if this level gives way, the pair will complete a bearish head-and-shoulders pattern. That may sink the pair to $1.28.BNB price analysisBNB (BNB) rose above the 20-day EMA ($591) on March 13, but the bulls could not sustain the higher levels, as seen from the long wick on the candlestick.BNB/USDT daily chart. Source: Cointelegraph/TradingViewThe bulls are again trying to push the price above the 20-day EMA. The BNB/USDT pair could challenge the 50-day SMA ($624) if they can pull it off. A break and close above the 50-day SMA will suggest that the correction may be over. The pair could then attempt a rally to $686.If bears want to prevent the upside, they will have to yank the price below the $500 support. The pair may then fall to $460, which is expected to attract aggressive buying by the bulls.Solana price analysisSolana (SOL) has been trading above the $120 level, but the bulls have failed to push the price above $132.SOL/USDT daily chart. Source: Cointelegraph/TradingViewIf the price skids below $120, the SOL/USDT pair could drop to $110. This is a critical support to watch out for because a break and close below it may start a downward move to $98 and then to $80.On the upside, a break and close above the 20-day EMA suggests that the selling pressure is reducing. The pair could rally to the 50-day SMA ($178), where the bears are expected to mount a strong defense.Cardano price analysisCardano (ADA) was rejected from the 20-day EMA ($0.77) on March 12, signaling that the bears are selling on rallies.ADA/USDT daily chart. Source: Cointelegraph/TradingViewThe ADA/USDT pair could drop to the uptrend line, which is an important level for the bulls to defend. If the price bounces off the uptrend line with strength, it will improve the prospects of a break above the moving averages. If that happens, the pair could rise to $1.02.This positive view will be invalidated in the near term if the price turns down and breaks below the uptrend line. That could start a slide to $0.58 and subsequently to the Feb. 3 intraday low of $0.50.Dogecoin price analysisDogecoin (DOGE) bounced off the $0.14 support on March 11, indicating that the bulls are trying to defend the level.DOGE/USDT daily chart. Source: Cointelegraph/TradingViewThe relief rally is expected to face selling at the 20-day EMA ($0.19). If the price turns down sharply from $0.19, it increases the possibility of a break below $0.14. The DOGE/USDT pair could then plummet to $0.10.Related: Bitcoin-to-gold ratio breaks 12-year support as gold price hits a record $3KThe first sign of strength will be a break and close above the 20-day EMA. That could open the doors for a rally to the 50-day SMA ($0.24). Sellers will try to stall the up move at the 50-day SMA, but if the bulls pierce the resistance, the pair could climb to $0.29.Pi price analysisPi’s (PI) recovery stalled at $1.80 on March 13, indicating that the bears are selling on every minor rally.PI/USDT daily chart. Source: Cointelegraph/TradingViewThe bears will try to sink the price to $1.20, which is a crucial level to watch out for. If the price rebounds off $1.20, it will indicate a possible range formation. The PI/USDT pair could oscillate between $1.20 and $1.80 for some time.Contrary to this assumption, if the price continues lower and breaks below $1.20, it will signal the resumption of the downward move. The pair could descend to the 78.6% retracement level of $0.72.UNUS SED LEO price analysisUNUS SED LEO (LEO) has been trading near the $10 overhead resistance, indicating that the bulls have kept up the pressure.LEO/USD daily chart. Source: Cointelegraph/TradingViewA break and close above $10 will complete a bullish ascending triangle pattern, which could start an upmove toward the pattern target of $12.04.The bears are likely to have other plans. They will try to pull the price to the uptrend line, which is an important level to watch out for. If the price rebounds off the uptrend line, it will signal that the LEO/USD pair may remain inside the triangle for a while. The bears will gain the upper hand on a break and close below the uptrend line. That could sink the pair to $8.84 and later to $8.30.Chainlink price analysisChainlink (LINK) plunged and closed below the support line of the descending channel pattern on March 10, but the bears could not sustain the lower levels.LINK/USDT daily chart. Source: Cointelegraph/TradingViewThe bulls have pushed the price back into the channel on March 14, but their efforts are likely to be met with strong selling at the 20-day EMA ($15.14). If the price turns down from the 20-day EMA, the bears will attempt to sink the LINK/USDT pair below $11.85. If they manage to do that, the pair could decline to $10.On the contrary, a break and close above the 20-day EMA will signal that the markets have rejected the break below the channel. The pair may then climb to the 50-day SMA ($18.27).This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Congress repealed the IRS broker rule, but can it regulate DeFi?
The decentralized finance (DeFi) industry is breathing a sigh of relief as Congress relaxes reporting obligations, but questions remain about how lawmakers will regulate DeFi.On March 12, the House of Representatives voted to nullify a rule that required DeFi protocols to report gross proceeds from crypto sales, as well as info on taxpayers involved, to the Internal Revenue Service (IRS). The rule, which the IRS issued in December 2024 and wasn’t set to take effect until 2027, was regarded by major industry lobby groups as burdensome and beyond the agency’s authority. The White House has already signaled its support for the bill. President Donald Trump is ready to sign when it reaches his desk. But DeFi observers note that the industry has yet to strike a balance between privacy and regulation. Bipartisan vote on repealing the rule. Source: DeFi Education FundPrivacy concerns over IRS DeFi ruleThe crypto industry was quick to laud the vote in the House. Marta Belcher, president of the Filecoin Foundation, said that blocking the rule was particularly important for user privacy. She told Cointelegraph it is “critical to protect people’s ability to transact directly with each other via open-source code (like smart contracts and decentralized exchanges) while remaining anonymous, in the same way that people can transact directly with each other using cash.”Privacy concerns were central to the crypto industry’s objections to the rule, with industry observers claiming that it was not fit for purpose and infringed on user privacy. Bill Hughes, senior counsel and director of global regulatory matters for Consensys Software wrote in December 2024, “Trading front ends would have to track and report on user activity — both US persons and non-US persons […] And it applies to the sale of every single digital asset — including NFTs and even stablecoins.”The Blockchain Association, a major crypto industry lobby group, stated that the rule was “an infringement on the privacy rights of individuals using decentralized technology” that would push DeFi offshore.While the rule has been stopped for now, there still aren’t fixed privacy guidelines in place — something Etherealize CEO Vivek Raman said the industry needs to move forward. “There needs to be clear frameworks for blockchain-based privacy while maintaining [Know Your Customer/Anti-Money Laundering] requirements,” he told Cointelegraph.Raman stated that some transactions and customer data will need to remain private, “and we need guidance on what privacy can look like.”How do you regulate DeFi?The crypto space has long juggled user privacy demands and regulators’ Anti-Money Laundering and Know Your Customer concerns. One problem lies in the technology itself — if a network is created by many and controlled by no single entity, who can the government contact? Per Raman, “It’s hard for a decentralized protocol that is controlled by nobody to issue 1099s or fulfill broker-dealer responsibilities! Companies can certainly be [broker-dealers], but software has not been designed for [broker-dealer] rules.”DeFi developers can and have been proactive in working with regulators, Chainalysis suggested, as was the case with certain protocols freezing funds after the disastrous $285 million KuCoin hack. Related: Timeline: How Bybit’s lost Ethereum went through North Korea’s washing machineCinneamhain Ventures partner and consultant Adam Cochran claimed that every protocol has certain pressure points regulators could press on if a protocol were used to commit a crime:Source: Adam CochranHowever, these specific instances do not make a comprehensive regulatory framework that both the industry and investor protection agencies can point to. In that regard, crypto analytics firm Chainalysis stated in 2020 that regulators may need to craft regulations for the DeFi space with decentralized reporting limitations in mind. Raman suggested that one possible solution could be zero-knowledge proofs, which allow users to confirm certain data without revealing it. He is optimistic about regulators’ ability to find a way to regulate the space while still maintaining user privacy: “I think we’ll see a positive sum environment where DeFi and compliance will coexist.”The long-awaited crypto regulatory framework Trump has already made a number of pro-crypto measures through executive orders and appointing pro-crypto individuals to head parts of his administration — the most recent being the establishment of a strategic Bitcoin reserve. Related: US Rep. Byron Donalds to introduce bill codifying Trump’s Bitcoin reserveThe pro-crypto tenure of important financial regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has dropped a number of high-profile enforcement cases against crypto firms.While notable, the big fish that the crypto industry is waiting for is the crypto regulatory framework and stablecoin bills circulating in Congress, which would give the industry the guardrails it claims it needs to thrive. On March 13, the Senate Banking Committee approved the GENIUS Act, the stablecoin bill, putting it one step closer to a vote on the Senate floor. The crypto framework bill, FIT 21, was first introduced in the 2024 legislative session, ultimately failing in the Senate. However, in February, House Financial Services Committee Chair French Hill said that he anticipated the bill could pass in this session with “modest changes.”But even if FIT 21 were passed soon, regulations for DeFi could be far off. The bill would exclude DeFi from SEC and CFTC oversight, but it would also establish a working group to research 12 key areas related to DeFi. This study will seek to understand the risks and benefits of DeFi and will ultimately make regulatory recommendations. Magazine: Vitalik on AI apocalypse, LA Times both-sides KKK, LLM grooming: AI Eye