🕵️💰 Vitalik Buterin Hacked? The Malicious Plot Behind Vitalik's Massive Crypto Hack!

Mochi here, back with another healthy serving of Proof of Intel. After feasting on our crypto and web3 insights, don't forget to take a sip of knowledge from our sponsored partner, Confluence.VC weekly. Preferred by 4,000 VCs and venture-backed founders, it's the essence of vital VC happenings.

If you’ve been snoozing on the blockchain buzz, fear not; we’ve got your back! From Buterin blunders to North Korean naughtiness, today’s intel drip is juicier than a freshly-mined Bitcoin. So, grab your digital magnifying glass and let's dive deep into the world of ones and zeroes. Ready to decrypt the deeds?

INTEL BRIEF 🟧💼

🟧 Vitalik Buterin's X account compromised, leading to $691K losses from malicious NFT link.

🟧 Startups raise $14M with DeForm and FirstMate leading, and Stroom Network's intriguing liquid staking plans unveiled.

🟧 Ripple acquires crypto infrastructure startup, Fortress Trust, expanding its crypto footprint and regulatory prowess.

🟧 Thodex's CEO Faruk Fatih Özer slapped with 11,196 years in prison after the crypto exchange's disastrous collapse, leaving users $2 billion short.

🟧 The Lazarus Group, a notorious North Korean hacking entity, has been identified by the FBI as the mastermind behind the $41 million theft from crypto casino Stake.

TL;DR at the bottom.

Vitalik's X-Traordinary Hack Tale 🐦

Oh, hey there, PoI pals! Our favorite Ethereum co-founder, Vitalik Buterin, seems to have stirred up a cyber-flavored storm. This ain’t about the newest Ethereum update, nope! Vitalik's X account got a nasty visit from the hack fairy. Some unlucky souls parted with a collective $691,000 after diving headfirst into a rogue link. Oops!

Papa Buterin (Dmitry) did the classic dad-move, popping onto X to tell the world: "Oopsie, seems like V's been hacked!" But the damage was done. With enticing promises of a free NFT, many were lured into the trap. Among the victims was Bokky Poobah, an Ethereum developer. His prized CryptoPunk NFTs? Poof! Gone. Speaking of CryptoPunks, did you know that a single one is floating around 46.99 Ether or roughly $77,000? Ouch, right?

As the crypto community played the blame game, one user, Satoshi 767, dared to whisper: “Was Vitalik's security lax?” A bold statement, no doubt. But our guy ZachXBT was quick to hop on the speculation train. He cautions everyone: "Hold your Ether-horses! We can't be sure if it was just a SIM swap issue." When you're Ethereum's poster child, all sorts of hacking shenanigans could be afoot.

Crypto Splash: A $14M Week! 🌊💸

The last week of August wasn't just about the sunsets and last-minute summer barbecues. Oh no, the crypto realm was buzzing! With four startups collectively raising a not-so-sleepy $14 million, our crypto wallets are positively jingling in excitement.

Our main story here? DeForm, an on-chain marketing firm straight from the tech heartland of San Francisco, snagged a cool $4.6 million in seed funding. Their goal? A "crypto-native" CRM system! 🖥️ Because in the future, everyone's favorite Rolodex should run on blockchain, am I right? 😉 Steve Jang’s Kindred Ventures led this parade, with notable investors like Elad Gil and Scalar Capital throwing their support behind the project.

Not to be outdone, FirstMate hooked $3.75 million to launch their ambitious project: a "creator-owned NFT storefront builder". Partnering with Manifold.xyz, they're granting NFT creators more autonomy over their work. Remember when customizing a webpage was a big deal? FirstMate's like, "Hold my Ether."

Now, let’s talk liquid. Stroom Network received a juicy $3.5 million seed round. Their goal? To introduce liquid staking to Bitcoin's Lightning network with their ERC-20 token, InBTC. Stroom wants Bitcoin to have what Ethereum's been sipping on, and it sounds refreshing!

A shoutout to other noteworthy fundraises: BuidlerDAO found $2 million from some heavyweight backers, and Aerodrome's recent action on Coinbase's layer-2 Base led to an impressive $175 million+ in deposits.

Ripple's Shopping Spree: Second Buy of 2023! 🛍️

Ripple, the superstar of cross-border payments, is expanding its shopping cart and diversifying its blockchain wardrobe. After all, who can resist a good sale, right?

So, the big headline? Ripple has officially bagged Fortress Trust. Now, if you're scratching your head, let me enlighten you. Founded by the financial whiz Scott Purcell, Fortress Trust is all about helping big businesses cozy up to digital currencies. Imagine it as a bridge between the stiff world of enterprise and the exciting world of crypto. Bridges and crypto... sounds like a classic love story! ❤️

But wait, there’s more! This acquisition isn’t just a random spree. It gives Ripple a nifty license in Nevada, which is like getting a VIP pass to a super-exclusive club. Not only does this move help Ripple expand beyond its famous blockchain-enabled payments, but it also fortifies their regulatory swag. Because who doesn't want to flex their credentials every now and then?

The XRP token, Ripple's golden child, was all cool and collected about this news, with only a slight uptick. Remember, XRP has had its roller coaster moments, especially after the U.S. SEC threw some shade its way. But Ripple's been bouncing back, making partnerships, and even nabbing a "not necessarily a security" ruling for XRP. Talk about a plot twist!

Fortress Trust is Ripple's second big buy this year, following their $250 million purchase of Metaco. Although they were tight-lipped about the exact price tag for Fortress, we can bet our bottom satoshi that it’s less than what they splashed out for Metaco.

Crypto Calamity: Turkish Thodex CEO's Mega Sentence! ⚖️

In the world of crypto, not every day is sunshine and rainbows, folks! Faruk Fatih Özer, the genius (or not-so-genius?) behind Turkey's once-titan crypto exchange, Thodex, just got a prison sentence longer than that leftover Christmas fruitcake's shelf life! Along with his partners in crime, siblings Serap and Güven Özer, they've been given a jaw-dropping 11,196 years, 10 months, and 15 days in the slammer. And if that wasn’t a cherry on top, a fine of a cool 135 million liras (around $5 million) was thrown into the mix.

Remember that wild time in April 2021 when Thodex turned into the crypto version of a ghost town? Yep, it vanished quicker than my ice cream on a summer day, leaving over 400,000 members scratching their heads and more importantly, missing a whopping $2 billion in cryptocurrencies. Our main man Özer tried to pull off a dramatic exit, fleeing to Albania. But just like in those movies, Interpol caught up with him a year later.

By the time we reached April 2023, Özer was back in Turkey, with the welcoming committee of police officers ready with a list of not one, not two, but seven charges. Drama ensued. When the curtains lifted, 21 defendants were potentially looking at up to 40,564 years combined in the big house. The final act at the Anatolian 9th Heavy Penal Court had 16 of the 21 defendants acquitted, and four of the seven jailed released due to a mere "lack of evidence." But for the Özer trio, it looks like it's game over!

FBI's Deep Dive: Lazarus Group's $41M Stake Steal! 🚨

The FBI has just dropped a bombshell! If you were wondering about the culprits behind the $41 million shakedown of Stake (yeah, the crypto casino Drake's been backing), it's none other than the infamous Lazarus Group. Straight outta North Korea, these digital desperados have been wreaking havoc in the crypto corridors for quite some time now.

Let's get the digits straight: $41 million from Stake. And if you thought that was their pièce de résistance, think again! The Lazarus resume boasts a whopping $100 million snatch from Atomic Wallet in June, followed by a cool $60 million from both Alphapo and CoinsPaid come July.

When it comes to moving their moolah, these hackers know their crypto craft. They've been shuffling assets through various networks like Bitcoin, Ethereum, Polygon, and the Binance Smart Chain, making the detectives' job all the more challenging.

The Lazarus Group's hit-list doesn’t end there. Remember the colossal $622 million breach of the Ronin Network tied to the popular crypto game, Axie Infinity? Yup, that was them. Add to that, their shady ties with Tornado Cash, a coin-mixing protocol linked with a hefty $7 billion laundering tab, which ended up in hot water with the US Treasury and led to the arrest of one of its co-founders, Roman Storm.

TL;DR: 🔻💯

🟧 Vitalik Buterin's X account, previously known as Twitter, fell victim to cybercriminals. Through a malicious NFT link, unsuspecting users lost a collective $691,000. While some are quick to point fingers at potential security oversights by Vitalik, there's a growing consensus that the situation may be more intricate than it appears.

🟧 Over a single week, the crypto world saw an influx of $14M in startup investments. Leading the fundraising charge were DeForm and FirstMate, both making notable strides in their respective niches. Meanwhile, Stroom Network isn't just content watching from the sidelines; they're gearing up to revolutionize Bitcoin staking, presenting a novel approach.

🟧 In a strategic move, Ripple officially added Fortress Trust to its growing portfolio. This acquisition, the second major one for Ripple in 2023, is more than just a business decision. It amplifies Ripple's commitment to advancing its crypto infrastructure while simultaneously enhancing its regulatory stature on the global stage.

🟧 The world of crypto was left in shock as Thodex's CEO, along with his siblings, was handed a staggering 11,196-year prison sentence. This severe punishment came in the aftermath of the exchange's dramatic downfall, where countless users found themselves $2 billion short. The event serves as a grim reminder of the unpredictable terrains of the crypto universe.

🟧 North Korean-based Lazarus Group is no stranger to the spotlight, especially when it comes to billion-dollar crypto heists. Their audacious cyberattacks have earned them a reputation as the crypto world's primary antagonists. The recent theft of $41 million from Stake adds to their notorious track record, emphasizing the ever-present urgency for fortified security measures in the crypto sector.