Crypto investors may have to rethink their attacks

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Crypto investors may have to rethink their attacks

Over the weekend, more than $26 million in funds had been transferred, mostly into tools and services that will make it more difficult, if not impossible, to track them. This comes a few days or weeks after a number of crypto platforms, such as HTX, Mixin, and Fortress, all announced they lost funds due to hacks.

One lesson from the last few weeks is that people in crypto - investors and users, yes, but especially builders and funders - need to rethink their attack vectors. For an industry built on 'not your keys', there is an awful lot of reliance on third-party tools and providers, any one of which could be compromised.

We know a number of lawmakers in the U.S. are looking at bills to try and enforce more know-your-customer rules on the crypto industry, he said. While it's unclear whether any of the bills may have genuine legs at this point - Sen. Sherrod Brown threw cold water on an effort by Sen. Elizabeth Warren just yesterday, for example - these efforts are ongoing.

We may not know for weeks whether Sam Bankman-Fried will take the stand at his own trial. He may want the chance to explain himself to the jury, but his lawyers are wary of the withering cross-examination such a tactics would invite. No matter what went down in FTX's final days, the unconventional former crypto executive has already said - publicly - plenty of what went down in the company's final days.

In the months between FTX's collapse and his arrest in the Bahamas, SBF released excerpts of interviews. They provide a picture into the mind of the man prosecutors allege was behind one of the greatest financial frauds in history. The man himself said he was a well-meaning altruist whose heady risk-taking got him in over his head.

In early December, a Wall Street Journal reporter asked SBF about Alameda, the crypto hedge fund accused of borrowing billions of dollars from FTX and its unknowing customers. SBF, who had a 90 percent ownership of Alameda and lived with its CEO, Caroline Ellison, said he, too, didn't fully know what was going on there, a refrain he later echoed in documents shared with the New York Times.

''T have enough brain cycles left to understand everything going on at Alameda if I wanted to. I didn't want to do so because I was concerned about conflicts of interest. And I felt like it would be inappropriate for me to be looped into, certainly to details of what was going on there.