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MetaMask, a popular Web3 wallet, cautioned that automatic Apple iCloud backups could be a risk factor that can allow hackers to steal funds from its users.

The wallet software maker has advised users to disable such data backups. 

The team stated in a Twitter thread Sunday that its users’ funds can be stolen if they have enabled a backup of MetaMask data on their Apple mobile devices. Such a compromise could occur if someone gained illicit access to the sensitive app data uploaded to iCloud — particularly via phishing attacks.

“If you have enabled iCloud backup for app data, this will include your password-encrypted MetaMask vault. If your password isn’t strong enough, and someone phishes your iCloud credentials, this can mean stolen funds,” the MetaMask team wrote.

The warning came a few days after a MetaMask user named Domenic Iacovone claimed to have lost several NFTs and assets estimated to be worth $655,000 in total after someone took over their iCloud account.

What appears to have happened is that a hacker gained control of Iacovone’s iCloud account and stole the wallet’s Keystore — a file with JSON format that held an encrypted version of the wallet’s private key needed to authorize transactions.

Notably, Apple’s mobile devices can automatically upload app data. In the backup process, files containing private keys (which are meant to only be used locally on the device) can get uploaded to Apple’s cloud servers, which malicious entities may gain access to in the event of a phishing attack, for example.

According to Serpent, a founder of a crypto-focused security firm Sentinel, the perpetrator posed as someone from “Apple Inc” and sent text messages to Iacovone asking to reset his Apple ID password. The hacker called Iacovone on his phone number and used a spoofed caller ID.

In obtaining the code, the hacker was given the ability to change the security password, and then subsequently gained access to Iacovone’s private key file. This, in turn, opened the door to their MetMask wallet and the ability to transfer out the affected assets. 

Iacovone posted that several of his non-fungible tokens (NFTs) were taken away in the event, including three NFTs from Mutant Ape Yacht Club (28478, 8952 7536) and three Gutter Cats (2280, 2769, 2325). In addition to these NFTs, Iacovone stated the hacker transferred out $100,000 worth of APE tokens.

It appears from this event that neither MetaMask nor Apple is at fault. The incident occurred due to weak operational security from Iacovone coupled with a native feature within Apple devices, and one which users can turn off. The MetaMask team has, nevertheless, advised people to disable iCloud backups, posting the details of the steps to turn it off. 

In the past, a series of incidents have targeted owners of high-value NFTs, either through email-based phishing or by spreading phishing links aimed to take over crypto wallets like MetaMask. Just last month, The Block reported that 35 NFTs, including Bored Apes, were stolen via phishing attacks spread via malicious links on the social media platform Twitter.  

MetaMask did not respond to a request for comment by press time.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

An energy company in Thailand owned by billionaire Sarath Ratanavadi today announced investments in Binance.US and BNB tokens.

Gulf Energy Development Public Company Limited said in a regulatory filing on April 18 that it had, through a subsidiary, made an investment in “series seed preferred stock” issued by BAM Trading Services Inc., operator of Binance.US. The exchange announced a $200 million raise at a $4.5 billion valuation on April 6.

Per a separate filing on April 18, Gulf Energy has also used a subsidiary named Gulf International Investment Limited to invest an undisclosed sum in BNB — the native token of BNB Chain, Binance’s blockchain.

Gulf Energy said in the second filing that these moves are “aligned with the company’s target to be the leader in digital infrastructure while providing further opportunities for the company to expand into other digital asset-related initiatives in the future.”

The Thai firm announced plans to form a joint venture, through its subsidiary Gulf Innova Company Limited, with the wider Binance group in January — primarily to set up a crypto exchange in Thailand. The pair hoped to finalize the deal in the second quarter of this year.

In the second filing, Gulf Energy said that Gulf Innova entered a shareholders’ agreement with Binance on April 13 to set up a crypto exchange.  

The pair had also stated their intention to work with local regulators. “Following the establishment of the joint venture, it will apply for a digital asset exchange license and other licenses with relevant agencies,” said Gulf Energy in the second filing.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Crypto lender Nexo said it is working with Mastercard to offer a crypto-backed payment card, Reuters reported last week.

The card is linked to a crypto-backed credit line, allowing investors to spend as much as 90% of the fiat value of their crypto assets, Nexo said, adding that the card allows users to spend without selling their digital assets.

Zug, Switzerland-based Nexo said the card, initially available only in selected European countries but accepted globally, uses the digital assets as collateral.

“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.

This signals the latest move by crypto and financial networks to join forces as digital assets become more mainstream, Reuters said, adding that electronic money firm DiPocket is Nexo’s card issuer.

The Block reported last week that Mastercard had filed for 15 metaverse and crypto trademarks on a 1b basis, meaning there’s an intent to use them at some time in the future. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Luxury fashion brand Louis Vuitton is moving ahead with its experimentation with non-fungible tokens (NFTs) with the introduction of PFP-inspired NFT rewards in its stand-alone mobile app game Louis: The Game.

The game was first introduced in August 2021. Players enter a world where they can dress up their brand-inspired avatar named Vivienne and run around collecting postcards that teach them about the brand’s 200-year history. The company has added new quests and new NFT rewards to the app, according to Vogue Business, who first reported the news.

Players who collect a certain number of free NFTs in the game will have a chance to qualify for an NFT raffle, which runs until August 4 (as one of the postcards in the game reveals, that day is Louis Vuitton’s birthday). Players have a chance to win one of 10 new NFTs that feature Vivienne in a range of different looks, which will be portable across multiple platforms like a PFP.

The NFTs are made in collaboration with Beeple’s startup Wenew Labs, which also worked with sister company Possible, and minted from Louis Vuitton’s Ethereum wallet.

The big opportunity

Luxury and fashion brands have been increasingly experimenting with NFTs and blockchain gaming, with the hope of attracting Gen Z consumers, a group that has an estimated spending power of up to $143 billion.

Last month, dozens of companies – from luxury brands like Dolce & Gabbana to fast fashion brands like Forever 21 – took over the virtual streets and runways of Decentraland for the first-ever metaverse fashion week. The metaverse, often described as the next phase of the internet, is estimated to be an $800 billion market opportunity, according to Bloomberg Intelligence.

Sources focused on this area contend that digital fashion is becoming one of the fashion industry’s biggest growth opportunities.

“Really what it’s about, when we look at virtual environments, is it’s the future of social media,” said Charles Hambro, CEO and co-founder of Geeiq, in an interview with The Block. Geeiq consults brands on how to identify and optimize metaverse and gaming partnerships.

Hambro says many fashion brands approach Geeiq with the intention of connecting with audiences in an authentic way that meets consumers where they are. Other brands reach out because they don’t want to miss out on what some of the largest luxury brands are already doing.

Despite the buzz around the loosely defined “metaverse,” research published by Piper Sandler shows that only about half of 7,100 teens surveyed in the U.S. are interested in the concept. While 26% of teens own a VR headset, only 5% use it daily, according to the report by Piper Sandler, a consumer research firm, obtained by The Block.

Nonetheless, experiments have shown promising results. Louis: The Game, which is free to download and doesn’t require any additional equipment, has had 2 million app downloads, the company told Vogue Business. Similarly, nearly 7 million people have visited Nike’s Roblox store, according to Nike President and CEO John Donahoe, in their March 2022 earnings call.

Gucci, an early mover into NFT fashion, had 19 million visitors on Roblox, said Robert Triefus, Executive Vice President and Chief Marketing Officer of Gucci, in an interview with McKinsey.

What’s next?

On its face, the exploration of virtual spaces and goods is seen as a positive one for the fashion industry, coming after years of supply chain disruptions and fluctuations in consumer spending since the start of the COVID-19 pandemic. 

But how fashion can take advantage of this area is still not well understood. Even some of the biggest names and players in the space are skeptical about the potential.

Louis Vuitton’s parent company LVMH’s own chief executive Bernard Arnault said in a January earnings call that he was cautious about a potential metaverse “bubble,” pointing to the burst of the dot com bubble in the early 2000s.

François Pinault, the founder of Kernig, an LVMH competitor, is optimistic, saying the metaverse will be a “disruptive” opportunity, during the company’s earnings call in February. Pinault pointed to the potential of NFTs as a way to authenticate physical goods, and the possible role of smart contracts to track secondary sales (a current pain point for the industry.)

Gucci, owned by Kernig, has been heavily focused on this front, with a dedicated team working on virtual experiences.

“When it comes to NFTs, it’s going to require a lot more time to understand what they represent in terms of customer experience or value-add,” said Gucci’s Triefus in the McKinsey interview. “But you’ve seen a significant number of brands within the sector saying, okay, we believe that NFTs have relevance, we’re not 100 percent sure yet what that relevance is but we’re going to pilot [this], we’re going to experiment and have some learnings and insights as a result.”

For Gucci, the metaverse isn’t just a good short-term marketing opportunity, he says. In the future, he expects it to become a “very significant” driver of revenue growth.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Beanstalk, a credit-focused stablecoin protocol built on Ethereum, was exploited Sunday morning.

The attacker obtained more than $80 million worth of crypto, including 24,830 ETH — an amount worth roughly $75.8 million as of press time. The remainder of the exploited funds were in the form of drained liquidity connected to the protocol’s governance token.

Transaction data indicates that the exploiter has since begun moving funds to Tornado, an Ethereum-based mixer that obfuscates the source of funds that move through it. 

As for how the exploit was carried out, signs indicate that the exploiter used an accumulation of governance tokens — obtained through a flash loan —  to create a fake protocol improvement proposal to gift funds held in the protocol to an address used to raise donations for the government of Ukraine. 

This is a developing story and will be updated with more information.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Mykhailo Fedorov, vice prime minister and minister of digital transformation of Ukraine, tweeted his thanks today to those donating to crypto charity Aid for Ukraine, saying: “Crypto for good. Aid for Ukraine continues its work for the frontline heroes: 200 sets of ballistic plates of 4 class for bulletproof vests have been sent. The better equipped soldiers — the sooner day of Ukrainian victory.”

Just days after the Russian invasion began, the Ukrainian government authorized Aid for Ukraine, a decentralized autonomous organization (DAO) in collaboration with blockchain service Everstake and crypto trading firm FTX, to collect cryptocurrency for the defense effort.

The plan was hatched in haste, the Financial Times reported, when Fedorov, 31, told his deputy to set up official government wallets that could accept payments in cryptocurrency, a plan that quickly evolved into the Aid for Ukraine website, which accepts donations in nine cryptocurrencies including bitcoin, ether, tether, solana and dogecoin.

The Ukrainian government had spent half of more than $100 million in crypto fundraising as of March 19, on thousands of bulletproof vests, food rations, helmets and medical supplies — deliberately choosing to spend the funds on non-lethal equipment, so as not to deter future donors, the FT said.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The European Commission has received about 10,000 public comments so far on its call for evidence regarding a digital euro, which is to run from April 5 to June 14 and is aimed at getting feedback for the possible establishment and regulation of a digital currency as a new form of central bank money.

A targeted consultation is also happening during a similar period, designed to help policymakers consider issues including users’ needs and expectations for a digital euro, a digital euro’s role for the EU’s retail payments and digital economy, the application of money-laundering rules, privacy and data protection aspects and international payments, Finextra reported.

A working document says the targeted consultation is to complement the public call for evidence. It aims to collect information from industry specialists, payment service providers, payment infrastructure providers, developers of payment solutions, merchants, merchant associations, consumer associations, retail payments regulators and supervisors, anti-money laundering supervisors, financial intelligence units and other relevant authorities and experts.

The EU has yet to make a decision on whether to issue a digital currency, with the consultation serving as a precursor to any law drafting that may happen in in 2023. The Block reported in February, citing Politico, that Mairead McGuinness, EU Commissioner for Financial Stability, Financial Services and the Capital Markets Union, said: “Our goal is to table legislation in early 2023.”

The European Central Bank addressed privacy concerns in a presentation to finance ministers on April 4, and is also assessing the potential of a digital currency, with the phase expected to continue until September 2023, Finextra reported.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Last week, after people watching the Bitcoin 2022 conference in Miami were introduced to the islands of Madeira, an autonomous region of Portugal in the northwest of Africa, some of them seem to have walked away with the wrong idea: that the region, like El Salvador, was planning to make Bitcoin “legal tender.”

The distinction would legally recognize the cryptocurrency as an acceptable form of payment for settling debts and paying taxes. But according to a representative from the president’s office, Madeira has no plans to do this for bitcoin. 

In fairness, the announcement itself was confusing, at least in the way it was delivered.

Just before the president of Madeira’s government Miguel Albuquerque stepped onto the main stage, ex-Blockstream chief strategy officer Samson Mow teased that the region would be “adopting Bitcoin.” And Albuquerque’s talk followed a separate announcement that a special economic zone in Honduras, called Próspera, would recognize cryptocurrency as a legal currency, 

Albuquerque said nothing about making bitcoin legal tender during his speech. And yet after the talk, several media outlets ran with the story that Madeira was doing something along the lines of what El Salvador has done with bitcoin. Forbes reported that Madeira would be “adopting bitcoin as de facto legal tender” and Cointelegraph wrote that “the next jurisdiction to make Bitcoin legal tender is that of Madeira.”

Not so, confirmed the representative from the president’s office, who reiterated in an email to The Block (translated from Portuguese) that “at no time was it said that the region would adopt Bitcoin as legal tender.”

While on stage, Albuquerque said that companies coming into Madeira can pay taxes as low as 5%. This is due to Portugal’s Madeira Free Trade Zone, which was established in the 1980s as a way to attract outside investment. He also said that there were no income taxes on bitcoin investments, which is true for all cryptocurrencies everywhere in Portugal.

The representative declined to clarify whether anything new was revealed in the talk. 

Meanwhile, the president told the local newspaper Diário de Notícias da Madeira that his intention was to use the conference appearance to promote Madeira as an attractive tech hub. “It was an opportunity that came up and I had to take it,” Albuquerque told the publication.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

A Russian organization known as Conti, which the FBI calls one of the most prolific ransomware groups of 2021, has been damaged by leaks detailing its size, leadership and business operations, as well as the source code of its ransomware, according to a report this week by CNBC citing threat intelligence companies.

Shmuel Gihon, a security researcher at Cyberint, said Conti emerged in 2020 and grew to about 350 members, who have made $2.7 billion in cryptocurrency. “They were the most successful group up until this moment,” Gihon said.

In an online post, Cyberint said the leaks appeared to be an act of revenge prompted by Conti’s support of the Russian invasion of Ukraine. The group could have remained silent, but “as we suspected, Conti chose to side with Russia, and this is where it all went south.” The leaks started four days after Russia’s invasion of Ukraine.

Someone opened an anonymous Twitter account and began leaking thousands of the group’s internal messages alongside pro-Ukrainian statements, CNBC reported. The leaker seems to have since finished, writing on March 30: “My last words… See you all after our victory! Glory to Ukraine!”

The impact was big, said Gihon, adding that many of his global colleagues have spent weeks poring through the documents.

Cyberint, Check Point and other specialists said the messages show Conti operates and is organized along the lines of a normal tech company, with clear management, finance and human resource functions, as well as team leaders who report to upper management.

The messages also showed that Conti has physical offices in Russia and may have ties to the Russian government, Cyberint said.

The Russian embassy in London did not respond to requests by CNBC for comment. Moscow has previously denied that it takes part in cyberattacks.

Though the group has been compromised, it will probably make a comeback, Check Point Research said, adding that it is still “partially” operating.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Uniswap Labs, primary developer of the biggest decentralized exchange for spot-market cryptocurrency trading, is seeking to grow by introducing computer code that can embed its capabilities into any website, Bloomberg reported this week, citing an interview with the company’s COO.

“To grow, we have to grow the whole market,” said Mary-Catherine Lader, chief operating officer at Uniswap.

A widget that can be added by pasting in a line of code will let OpenSea users swap various tokens without leaving the website that runs it and will also be available initially on Oasis.app and Friends With Benefits, the report said.

The widget is part of Uniswap’s growth strategy that led to the company’s launch of a venture arm to invest in web3 startups, which The Block reported earlier this week.

Uniswap Labs Ventures will invest in web3 projects across categories, focusing on startups building blockchain infrastructure, developer tools and consumer-facing applications.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.