Key Developments in the Cryptocurrency Space
1. Montenegro Rejects Do Kwon's Appeal, Extradition to US Likely
Montenegro's Constitutional Court dismissed Terraform Labs co-founder Do Kwon's appeal against his extradition ruling. The court unanimously upheld the decision, leaving the Justice Minister to determine whether Kwon faces trial in South Korea or the US. Kwon, wanted for the 2022 collapse of TerraUSD and Luna, was arrested in Montenegro in March 2023 for using falsified travel documents.
2. Cryptocurrency Hacks Surge 40% in 2024 with $2.3B Stolen
Cyvers' annual report reveals hackers stole $2.3 billion across 165 incidents this year — a 40% increase from 2023's $1.69 billion losses. This underscores growing security challenges in decentralized finance ecosystems.
3. FBI Exposes North Korean Hackers' $300M DMM Bitcoin Heist
The FBI detailed how TraderTraitor Group operatives compromised Japan's DMM exchange:
- March 2024: Hackers posed as recruiters on LinkedIn to target Ginco wallet employees
- May 2024: Stolen credentials enabled manipulation of transaction requests
- Result: Over $300M in Bitcoin diverted to DPRK-controlled wallets
4. US Bitcoin ETFs See $1.18B Outflows Amid Market Downturn
Spot Bitcoin ETFs experienced three consecutive days of net outflows totaling $1.18 billion — the longest streak since November's election. Combined with price declines, these funds lost $10.7 billion in total assets under management between December 18-23.
5. Coinbase CEO's Holdings Gain $2B Post-Election
Brian Armstrong sold $437M in COIN shares following pro-crypto political developments, retaining >10% ownership. His remaining 24 million shares now value at $6.4 billion — a $2 billion increase since November 5.
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6. MicroStrategy Proposes 3100% Share Increase
The Bitcoin-holding firm seeks shareholder approval to raise authorized shares from 330M to 10.3B, potentially facilitating future acquisitions or stock-based compensation.
7. Bitcoin Circulation Hits 19.8M with 1.2M Remaining
Current network metrics:
- Hashrate: 777.23 EH/s
- Difficulty: 108.52T
- Daily minting: ~450 BTC at 3.125 BTC/block
8. Russia Bans Mining in 10 Regions Through 2031
Effective January 2025, six-year prohibition covers conflict zones and energy-vulnerable areas like Chechnya and Donetsk. Seasonal restrictions will apply in major mining hubs to stabilize power grids.
Institutional Activity
9. Coinbase International Sets $119B Weekly Volume Record
Derivatives trading surged 124% WoW, with BTC/ETH perpetual contracts comprising 91% of activity. Daily averages jumped from $25M in November to nearly $1B this month.
10. Argentina Freezes $3.5M USDT in Pyramid Scheme Crackdown
Tether complied with judicial orders to block Rainbowex-linked funds after the alleged Ponzi scheme defrauded thousands. Authorities executed 22 raids and arrests.
Energy & Policy Trends
11. Crypto Mining and AI Drive North American Power Demand
NERC reports Texas may see 4.6% summer peak growth — 4x prior estimates. Solutions include:
- HB 3390's distributed energy regulations
- Miner adoption of renewables (e.g., Marathon Digital)
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12. US Crypto Regulation Outlook Under Potential Trump Administration
CITIC Securities highlights three potential beneficiaries of deregulation:
- Trading platforms (higher activity)
- Mining hardware manufacturers
- Utility providers (energy demand)
FAQ Section
Q: Why is Do Kwon facing extradition?
A: The Terraform Labs founder is wanted for fraud related to the $40B collapse of Terra's algorithmic stablecoin in 2022.
Q: How can investors protect against crypto hacks?
A: Use hardware wallets, enable multi-factor authentication, and verify smart contracts through auditing platforms.
Q: What's driving Bitcoin ETF outflows?
A: Combination of profit-taking, macroeconomic uncertainty, and typical year-end portfolio rebalancing.
Q: How does Russia's mining ban affect global hashpower?
A: Likely to redistribute miners to energy-rich regions like Kazakhstan or Texas, potentially increasing network decentralization.
Q: Are AI and crypto competing for energy resources?
A: While both are energy-intensive, crypto's flexible load capabilities may complement AI's constant demand through demand-response programs.
Market Disclaimer: Cryptocurrency investments carry substantial risk. This analysis represents institutional perspectives only — consult a financial advisor before making investment decisions.
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