In the early hours of the day, Bitcoin’s price surpassed $45,000 for the first time since April 2022, driven by expectations of a U.S. Securities and Exchange Commission (SEC) approval for a spot Bitcoin exchange-traded fund (ETF).

The cryptocurrency industry was rocked by a series of bankruptcies in 2023, among which was the prominent and complex case of FTX, where creditors are attempting to recover over $8 billion. This case, filed in November 2023, is expected to be protracted, overshadowing other major crypto bankruptcies like Celsius and BlockFi.

Last year saw a significant escalation in cryptocurrency phishing scams, affecting over 324,000 users and leading to the loss of around $295 million in digital assets. This alarming trend was comprehensively detailed in the “2023 Wallet Drainers Report” by blockchain security platform Scam Sniffer, which analyzed the methods and growth of these phishing activities.

Top stories in the Crypto Roundup today:

• Bitcoin Surges Past $45,000 for First Time Since April 2022
• FTX's $8 Billion Bankruptcy Case: Prolonged Legal Struggles Ahead
• Cryptocurrency Phishing Scams Surged in 2023 With Over $295 Million Lost

Bitcoin Surges Past $45,000 for First Time Since April 2022

In the early hours of the day, Bitcoin’s price surpassed $45,000 for the first time since April 2022, driven by expectations of a U.S. Securities and Exchange Commission (SEC) approval for a spot Bitcoin exchange-traded fund (ETF).

This upward trend was mirrored by other cryptocurrencies, including Ether, the second-largest crypto asset by market cap, which rose by over 4%.

The market is experiencing a sense of urgency among traders in the U.S. and Europe, with some beginning their purchases as early as the morning of January 1, New Year’s Day, as noted by Hayden Hughes, co-founder of Alpha Impact, a social trading platform.

Cici Lu McCalman, founder of blockchain advisory firm Venn Link Partners, suggested that a significant market correction is unlikely due to the prevailing positive market sentiment and the anticipated Bitcoin halving.

This event, which reduces the Bitcoin coinbase block reward for miners by half, is scheduled for April and occurs roughly every four years. Historically, Bitcoin has reached new highs following each of its last three halvings.

Last year, Bitcoin saw a near 160% recovery, partially offsetting the losses from the steep crash in 2022 that impacted the entire crypto industry. During this period, Bitcoin outperformed both global stocks and gold, though it still remains below its all-time high of just over $69,000, reached in November 2021.

FTX's $8 Billion Bankruptcy Case: Prolonged Legal Struggles Ahead

The cryptocurrency industry was rocked by a series of bankruptcies in 2023, among which was the prominent and complex case of FTX, where creditors are attempting to recover over $8 billion. This case, filed in November 2023, is expected to be protracted, overshadowing other major crypto bankruptcies like Celsius and BlockFi.

Alan R. Rosenberg, a partner at Markowitz Ringel Trusty & Hartog, anticipates a lengthy process due to FTX's multiple clawback claims aimed at recouping payments made before its insolvency.

Rosenberg, in an interview with The Block, noted that these claims, especially those involving significant transfers to large organizations, could extend for years. While such claims typically settle out of court, the negotiation process itself is time-consuming.

FTX's legal battles are multifaceted. Apart from clawback attempts, the exchange faces a substantial $24 billion claim from the Internal Revenue Service (IRS) for unpaid taxes. FTX has managed to settle mutual complaints with Genesis, a major creditor of its affiliate Alameda Research, but still confronts unresolved lawsuits, including a $1 billion claim against ByBit.

The exchange is also seeking to recover $71 million from its philanthropic arm and payments made to celebrities for promotions. Additionally, the bankruptcy estate is involved in lawsuits over transactions deemed fraudulent, suing former CEO Sam Bankman-Fried, other executives, and Bankman-Fried's parents.

A pressing issue in crypto bankruptcies is the mode of creditor payment – in crypto or fiat. With no official guidelines, Rosenberg expressed hope for new legislative mechanisms to address the distribution of cryptocurrencies in such cases, spurred by the scale and impact of recent crypto insolvencies.

Cryptocurrency Phishing Scams Surged in 2023 With Over $295 Million Lost

Last year saw a significant escalation in cryptocurrency phishing scams, affecting over 324,000 users and leading to the loss of around $295 million in digital assets. This alarming trend was comprehensively detailed in the “2023 Wallet Drainers Report” by blockchain security platform Scam Sniffer, which analyzed the methods and growth of these phishing activities.

Scam Sniffer's report highlighted a persistent increase in phishing scams throughout the year, and pointed out that phishing gangs do not cease their activities even when their operations like wallet drainers shut down. Instead, they migrate their operations to other platforms.

The report provided insights into some high-profile phishing entities such as Monkey Drainer, known for its significant phishing exploits, which stole approximately $16 million before shutting down and directing its clientele to another scam service. Similarly, Inferno Drainer ceased its operations in 2023 after accumulating about $81 million in stolen assets.

Scam Sniffer's analysis revealed various methods employed by scammers to attract traffic to phishing sites, which included hacking official Discord and X (formerly Twitter) accounts of projects to spread phishing links, conducting fake airdrops of cryptocurrencies or NFTs, and taking over expired Discord links. They also left spam comments and mentions on X to lure potential victims.

The report uncovered that scammers have successfully circumvented the advertising guidelines of platforms like Google and X. Phishing websites managed to publish paid ads on Google Search and X, further spreading their malicious reach.

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