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CRYPTIC CREATOR

Has the identity of bitcoin’s mystery creator been unchained?

An investigation from The New York Times puts forward its case to solve the crypto world’s biggest puzzle.

From Agatha Christie’s enduring detective novels, to an abundance of true crime podcasts, to unmasking modern enigmas like Banksy, there’s no doubt that people love mulling over a whodunit.

For the crypto community, the question mark that’s loomed since a nine-page proposal for a little peer-to-peer electronic cash system called “bitcoin” appeared on the internet in 2008 has been the anonymous creator of the world’s most valuable cryptocurrency.

Working under the pseudonym “Satoshi Nakamoto,” bitcoin’s creator initiated an industry worth some $2.4 trillion today by founding the revolutionary financial technology, leaving virtually no digital footprint. Countless fans, forums, and filmmakers have tried to pinpoint their identity over the last 17 years. Now, a new investigation from The New York Times claims to have an answer.

Blockbusting

Published early Wednesday, the piece sees author John Carreyrou put forward several striking similarities, based on a body of evidence amassed over a yearlong inquiry, between the so-called Satoshi and 55-year-old British cryptographer Adam Back, a prominent name within crypto who currently leads the Bitcoin Standard Treasury Company, which plans to go public via a SPAC merger this year. His Wikipedia page has gained traction over the last decade, and his name has come up in previous efforts to reveal the pseudonymous creator of bitcoin, but he wasn’t a front-runner until today.

Ignoring those whose claims to the crypto crown have already been debunked, a handful of computer scientists have repeatedly cropped up in theories: Hal Finney, the late programmer and Cypherpunk member who received the first-ever bitcoin transaction from Satoshi; Len Sessaman, a cryptographer named in a 2024 HBO exposé documentary; and Nick Szabo, the creator of Bit Gold, who’s been the subject of even Elon Musk’s speculation.

Carreyrou’s argument for Back cites a series of inventions related to decentralized networks, matching credentials and supposed interests, similar spelling and grammar habits, and a period of Satoshi inaction that all but says, “Have you ever seen them in the same place?” While Back has already denied the report, one thing is certain: efforts to unmask bitcoin’s creator will continue, even if there are some who believe it’s better if the world never knows for sure.

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Crypto industry lifts on news of Iran ceasefire

News of a ceasefire between the US and Iran has sent cryptocurrencies and digital asset equities rallying, with privacy-focused token Zcash jumping 27% in the last 24 hours and leading market gains.

The price swing, which helped boost the total crypto market capitalization by 4.8% in the period, has resulted in $474.7 million in short positions liquidated worldwide, data from CoinGlass shows.

Since the ceasefire was announced:

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$11.4B

The FBI revealed in a Monday press release that Americans submitted 181,565 complaints of schemes involving cryptocurrency and reported losses totaling around $11.4 billion last year, a 22% increase from 2024.

The age range most affected were people older than 60. Those in this category had the highest crypto complaint count at 44,555 with losses at $4.4 billion, per the annual report from the Internet Crime Complaint Center, a division of the FBI tasked with gathering intelligence on cybercrime.

One cybercrime the report pointed to was cryptocurrency investment fraud, which are sophisticated long-term scams using psychological manipulation, an appearance of legitimacy, and exploitation of cryptocurrencies to deceive victims into investing large sums of money. 

“These scams are largely perpetrated by organized criminal enterprises based in Southeast Asia using victims of human trafficking as forced labor to run the scam operations,” per the report. 

The FBI report comes as the crypto ecosystem is still reeling from a recent $270 million exploit that was planned six months in the making, a change from the initial estimate of multiple weeks.

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Aave sinks as another service provider leaves

The native token of the largest lending protocol in DeFi has shed roughly $163 million in market capitalization, dropping nearly 11% over the past 24 hours, after news that another service provider is leaving. 

Chaos Labs on Monday announced it was stepping down as a risk manager for the Aave DAO, citing concerns over V4 of the protocol and the recent exit of other core contributors. 

The risk management firm, which has been contributing to Aave since November 2022, decided to end its engagement with the protocol in part because of a “fundamental misalignment on how risk should be managed at Aave,” Chaos Labs CEO and founder Omer Goldberg said on X. 

The V4 protocol introduced a new smart contract code base. “When that architecture is rewritten from scratch, the risk infrastructure must follow. As a result, while the scope changed materially, the resourcing did not. Aave Labs may be comfortable with those trade-offs. We are not,” Goldberg stated.  

Chaos Labs’ termination comes after service providers Aave Chan Initiative and Bored Ghosts Developing Labs announced leaving due to centralization concerns with Aave Labs, which is headed by the protocol’s founder, Stani Kulechov. 

In response to Chaos Labs’ recent decision, Kulechov said, “There is no disruption to the Aave Protocol, its smart contracts, asset listings, or network deployments.” Kulechov added that Aave was not supportive of several elements of Chaos Labs’ initial proposal, such as a higher-risk management payment of $8 million. 

Aave has a total value locked of over $24 billion. V4 went live at the end of March and has seen around $10 million in deposits in the first week.

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