More Bitcoiners affected by hackings | The HODL Report

0:00printed digitally. There is no second best probably rat poison squared. Hello everybody, welcome to the HODL report I am forest HODL. And in today's video, we are going to discuss some more hacks that might be affecting bit pointers out there as well as some just general infrastructure around the cryptocurrency environment being vulnerable and being attacked. It's really an ongoing story here as you can tell last week on the HODL report, we also covered liquid getting hacked and the bad infrastructure and the vulnerabilities are still out there at large. But before we get into the show, I do want to give a quick shout out to the two donations that we received last week. If you want your note to be read off at the top of next week's show, you can send some Bitcoin over the lightning network right here.

1:00And I will read your comment off to the viewers of next week's show. So we received 4,500 sats with no note attached. I appreciate the support. And we received 21 Satoshi's with the note thank you forest exclamation point. Thank you for the 21 Satoshi's whoever you are and for supporting the show. Before we get into the show, though, I do also want to give the early viewers of the show some free Satoshi's through the Bitcoin wishing well program. This is a service and a reward program that they have on Bitcoin well, which is my favorite place to buy Bitcoin. It's a non custodial exchange, which means you send them dollars. They send you Bitcoin directly. There's no exchange failure party risk or third party risk. And they have great deals on Bitcoin and they have the reward program, which is a lot of fun. So right now, if you are watching, you can get out your lightning wallet. Make sure your camera app is up on there. So you have to press receive and then scan the QR code.

2:02And if you're the first person to scan the QR code that I'm about to bring up on screen, you will win some free Satoshi's. And if you don't want to compete against the other viewers right now, you can use my link in the description to sign up to Bitcoin well. And you can have a free toss in the Bitcoin wishing well. Today, it's only 210 sats, which is three weeks in a row. Hopefully, we will see you can win up to a million Satoshi's here. So hopefully, we'll see some bigger ones in the future. Before we get into the news, I do want to just talk a little bit about what Bitcoin's been up to some, some pulse on the market and some interesting things that have been happening with Bitcoin. So Bitcoin's price right now, 78,364 as of the snapshot from my website. And we are actually seeing an increase over the last seven days of Bitcoin accepting businesses. So businesses that accept Bitcoin 274 over the last 30 days and 71 from here. And this is brought to you. I had this question here, and I wanted to address this. So I'm just going to bring this up.

3:04This is where my website scrapes this information. This is from BTCMAP.org. And you can see here, they actually have a map of total merchants. And it's going up into the right, which we love to see, there's less volatility in Bitcoin or merchants, accepting Bitcoin, then there is in Bitcoin itself. So you can see here, a little bit of an increase over time. And a lot of businesses accepting Bitcoin, really, really great to see. And one of my favorite metrics to showcase is the increase here, because I believe it was 58, 56 something like that last week. So we're up to 73. We can see here that Bitcoin has decreased in its global asset rank. It went down one. We'll take a look at that in a little bit here. Fear and greed is going towards neutral from a greed perspective. So minus 14 points out of a hundred hash rate is up 18, ex a hash and volatility has declined a little bit. The all time high, 79,000 over the past 70

4:07days, or sorry, seven days, 79,648 with a low of 76 and implied volatility again down to 37%, which is still a little higher than it has been. But it's declining as the interest begins to move out of Bitcoin again after that short parabolic move we had. So here we have Bitcoin number 13 as broad calm increases its market cap and blows past Bitcoin. So we'll see kind of how that goes. But if you hold one Bitcoin, until Bitcoin becomes the number one asset, or if it matched what gold's current asset market cap is, one Bitcoin would be worth $1.5 million today. You can still get, however, 1276 Satoshis for only one USD, an incredible amount of Satoshis. Now let's take a look here. This is our public listening nodes or reachable nodes and some metrics

5:09around those. So you can see here Bitcoin Core is the main implementation with an 80% market share and 169 nodes have come online, reachable nodes have come online in the last seven days. And Bitcoin knots previously declining is now increasing by 42 nodes. So much less than Bitcoin Core, but relative to its market percentage, probably higher, I would say, definitely higher, actually, which is pretty interesting. BTC D was only 16 last week and now it is up by two. So there's a few more people running BTC D. So we'll hopefully see more nodes. I mean, these are only reachable ones. So there's tons of unreachable nodes. We're kind of seeing some people increase their adoption and moving upwards towards Bitcoin Core 31, which is the newest Bitcoin Core implementation. Here we have a visual representation

6:12of the fear and greed index with the index only seven points off of neutral. So we almost went to extreme greed. We didn't quite make it. We had a high of 74 had we been at 75 and higher, we would have been in extreme greed. So people are saying and thinking that Bitcoin has gone through this crazy move upwards and we're absolutely for certain out of the bear market, all of this. And I think it's highly likely we are, but we have still not seen a move into the extreme greed, which is very telling of where people's mindset are around this asset still. So as we move towards the neutral here, we will see in my opinion, less volatility, we'll see a little bit of just slow bleed. This is what Bitcoin does in the medium term timeframe is it kind of trades sideways and down until there's a parabolic move upwards, like we just saw. And you can see that reflection here in the

7:14fear and greed index having gone from 30 to 70. And now we're trading sideways and down in fear and greed as interest moves out. And as the price does the same, we are 21% above the four year SMA, which is historically a great buying indicator of time to accumulate more and more sats. You can see here that in previous bear markets, we touched or were below the four year simple moving average. And right here in the last few months, we have been at or below the four year simple moving average. Now we are 21% above it, still in a cool or undervalued price range as far as historical metrics on this go. And likely a very, very good continuing accumulation zone. Long term holder net position, we are still on the 30 day net still at a 100 K bit coin of older coins moving to younger addresses. But this is

8:18continuing to decrease as we've been noting, it's decreased a little bit less than it previously was. You can see here, the 30 day was at a low of 262,000 bit coin moving from addresses that were 155 days or older to new addresses. And you can see here, we are now at 108. And we went to in between there, we went to 126, 118. So it's slowing down at the pace of the we're not quite getting to a time of accelerating forward with coins being held to become mature. That obviously takes time. If somebody moves bit coin, that's going to be a flow out in this metric. And then somebody has to hold that bit coin in that after having moved it for 155 days. You're only there's going to be just massive legs with this indicator. You're going to have to wait 155 days for that bit coin to have not moved again for it to

9:21be seen as an accumulation in the 30 day time period. Here we have the realized price. And we are 8% above the adjusted cost basis. So the adjusted cost basis includes excludes seven year plus dormant bit coin. And the adjusted, I'm sorry, the realized price is at 53,000. And this is this is a snapshot of when bit coin moves, it takes the price when it moved and builds an accumulated price of all the Bitcoin that have moved into one metric. And that metric is the 53,000. And the adjusted is higher than that because it starts to exclude old, old coins, seven plus year dormant coins. So spot is above all of this again, a metric that we can look at our previous bear markets and see that it

10:21dipped below the realized price, which we have not seen. We've seen it dipped between the realized and the adjusted price. And now we're seeing it above both. So did we get a clean metric here that's indicated that we were in a bear market that we bought them in the bear market? No. And we're never going to get clean metrics across the entire board. So we will just have to wait and see how this goes along. What we can see here is some liquidation information and some open interest. This is leverage within the system using perps on exchanges like OKX and Binats. And you can see here, there has been a lot of shorts in the 80K that were wiped out. And now we're trading sideways in down. And the shorts have begin accumulating, growing. And as we get into orange from blue to yellow to orange and red becomes more concentrated amounts of leverage is what this is

11:25showing. And previously we were seeing lots of long leverage and we actually saw a little bit get wiped out here. And we're seeing some accumulate down here in the 73K. And lots of short leverage beginning to accumulate in the 81K, which they had previously been wiped out at. So this band here is condensing, getting tighter. And there's more and more confident players playing with leverage on both sides. This is good for figuring out short term price targets. And that's what this standard DCA or Bitcoin accumulation strategy is built off of it's built off of all the previous graphs and metrics that we looked at kind of combined into one to figure out a buy and hold strategy and a double down sort of accelerated dollar cost average strategy. And in here we have the price targets in just simple dollar terms. So short term price target is 81K and 73K. So we're in between there obviously. And if we go down to 73, you can see here that's

12:28this long leverage getting wiped out. If we go up to 81, you can see that's this short leverage getting wiped out. So those are the most likely short term price predictions based on leverage. What we can see here is Bitcoin is still cheap. It's creeping towards the neutral over time here. It has obviously been cheaper. And if we zoom out here, all these lines are showing ultimate accelerate an accelerated dollar cost average, a hold and overheated and so on. So if you look at this, say, the three year here, you can see that this adaptive strategy has an adaptive edge of 19% over the last three years, where you have a 31% return instead of a 15% return with a simple $100 per week dollar cost average versus this one here, which you end up sometimes investing less, but investing at better prices and having more value at the end

13:30of the day, typically buying a lot more though. So if we look here in the three month here, you can see that it would have bought 17,000, whereas the simpler dollar cost average would have bought 9,000 and you have an adaptive edge of 3.5%, which does add up not only does it add up in an extra 3.5% increase here, but also in the fact that you have almost a double as much Bitcoin. So you're getting a lot more return, you're getting that same 16% return plus the three plus double, right? So you have a lot more capital invested just at better times. Stay good look at the corporate Bitcoin treasuries. There has been some interesting things happening with Bitcoin per share when it comes to strive. You can see that Bitcoin per share did decline over the past little while here. This is where there was a leverage wipe out of strc and say to also kind of had that to a lesser extent and there was some selling of asset, the stock

14:33that this is tracking the Sats per share of. But you can see Sats per share increasing now over the past little while here. And that's because SATA, which is their preferred instrument, has been trading at the $100 price range and has allowed them to accumulate a lot of Bitcoin, which does not have direct dilution effects on the assets under the assets that are appropriately connected to the common stock. Whereas with strategy, it seems that the sort of bleeding to just a raw basic Sats per diluted share. And I know if you start looking at the common equity Bitcoin exposure things do look quite a bit different. But even the just again, Bitcoin per share per diluted share, we are seeing that it has started to stop moving. And this is because they raised all the cash, they raised all the cash they wanted for the dividend reserve. And they've raised extra cash for the

15:37strc buyback and they have not issued any MSTR common stock, but they continue to buy back a lot of strc. They're around 20% of the bid on strc right now. And this is beginning to work. Today is also, I believe the last day that you can hold strc and have that record date to receive the two week dividend. So that is pushing up that has begun pushing up for the past week or so, the price of strc and them all additionally being a buyer in the market as well. So they are as close to par as they have been in a very, very long time. I gave them around two months to fix this. They are I believe two and a half months in since I said that. So they have not, they did not fix it within the time frame that I thought they would be able to. Of course, this is a big moving ship. And the fact that SATA was able to fix this relatively quickly because they're more nimble, paying a higher yield, smaller amount of

16:39capital needed to push up the price. Give me confidence that it was doable and the time frame itself that I gave them was just simply incorrect. So this is still something that is working. It's working for MSTR. It's working for asset and it is working for shareholders. If they have enough patience and the ability to be patient in this stock that pays them out an annual yield of 12 to 13%. So patience in investing is generally good. And I think if you have enough patience to hold this, you should probably have enough patience to hold Bitcoin. And then why would you really hold this? Because this is a short-term instrument that should be treated similar to cash. But considering leverage wipeouts is a possibility, it becomes less useful in that way. The use case is still just being developed. There's needs to be ways to protect the downside potential as this begins to look stable, leverage

17:40gets applied onto it. And that inherently creates instability within there or the ability for profit to be gained by individuals institutions to cause chaos within that stock and have a leveraged bet in the opposite direction. So we can see here, let's see, let's go to this week. There's some information here that's kind of interesting. We'll get to it a little bit. This is the crypto slate here. We have hackers mint trillions in fake Bitcoin, but 15 Bitcoin bridge recovery leaves the pretty providers unpaid. This is, let's see, do we have this one up here? Let's take a quick look at this. This is as much as this is, I would say this is infrastructure within crypto and not really that connected to Bitcoin. And this is a company, a bridge protocol called symbiosis. And essentially what

18:43happened was somebody was able to mint a ton of fake Bitcoin on there, probably some sort of wrapped product, but they weren't actually able to sell that, swap it, do anything really with a lot of it. They ended up getting around $330,000 worth of value before it was blocked. And this is a Bitcoin bridge here, cross chain protocol. And they said they recovered approximately 15 Bitcoin, but affected liquidity providers still lack compensation terms as September 13th. So they also created a bounty to a 20% bounty to recover some of that. And this is just really another, this is just another example of how when something Bitcoin is unbelievably stable. And there's actually quite a lot of interesting things to think about. The protocol itself is incredibly stable, but there's actually not

19:44any real financial benefit from attacking the protocol. The I mean, you might be able to think of other ones, but one that jumps to my mind really quickly is this idea of a 51% attack. 51% attack is it requires a huge amount of for thought, huge amount of planning, because of how much hash rate there is on Bitcoin. And it would be a real attack on the Bitcoin network itself if somebody tried to do it or was successful at doing it. But what it actually allows somebody to do is spend Bitcoin and then reorganize the blockchain in their favor to give themselves back that Bitcoin. And how much can you do that in a transaction? How much wealth would you be able to spend and then get back by reorganizing the blockchain? It's debatable how much it would be, but it would definitely prove to not be worth it with the amount of effort that would it would take to do that. Whereas there is infrastructure built on top of Bitcoin that holds Bitcoin.

20:47For instance, the liquid network was a great example of this. There was 4,000 Bitcoin held in a federation model that had confidential transactions and lots of advanced cryptography. And therefore, lots of attack surfaces and the vulnerabilities of bugs. There was a bug within liquid that was not seen for, I believe it was around five years, similar to the hack with cold card. And then that bug was seen fixed and the fix introduced another bug. So there's additional attack surfaces with a large bounty of value within there. So even though there's a lot of value in the Bitcoin protocol, say again, for a 51% attack, the difficulty of attacking it in that way would be so costly and so obvious and actually probably just end up strengthening the network because all their hash rate would end up mining blocks and go towards greater security in that specific way. So the value for hackers ends up being the value and the ease

21:53ends up being on additional layers and therefore infrastructure built on top of Bitcoin. So this was one that was, I mean, you can, you can debate how connected to Bitcoin. That is some sort of crypto bridge thing. And they were able to essentially like freeze a bunch of it. It said trillions minted, but then none of it actually able to be taken in. And then, you know, so that's just kind of is what it is, right? And because it's crypto related, there's going to be tons of attack surfaces, defi protocol, all of this massive, massive, massive attack surfaces. So the other hack here that I want to talk about and I'm just going to bring this up. Take one second. This is from a great website, a great news source as well that I plan on integrating a little bit here. I'm going to talk with them about integrating this into the HALT report because my news fetching service lacks a little bit in my opinion. I love the breakdown, the numbers, the charts, all of that.

22:55My news service just isn't quite there yet with my clanker that I've employed to do that. So Bitcoin breakdown.com has a daily brief, I believe, or every other day, something like that. And they reported on this, so Revolut KYC spills. So they have a bunch of different things here, but let's go to their top story. Actually, this story here, I wanted to reach or touch on just a tiny little bit. So a research identified 900 in four app store listings marketed as non-custodial Bitcoin wallets and analyzed 494 of them. The review looked for private key exfiltration and weak entropy, then classified 23 findings as potentially critical and 22 as potentially high. If you're using a lowly vetted software wallet for key generation and key storage, that is just such a massive risk in today's age where AI is just a,

23:57where open source AI with no guard rails is able to find and exploit these bugs, especially if the hacker using those tools already knows what to look for. And already is experienced at black hat hacking. So this is just, this is a massive, massive story actually. And hopefully it doesn't end up being more than that. So this is reported on X. And this guy here is the person that was doing it using using AI. Apple app store specifically has a lot of issues and he's the chief technical officer of blue wallet. And here is the full list. So let's take a quick little look. Sorry, not the full list is in the last tweet. This is just a snapshot of some wallets. So you can see, see the exfiltration. I mean, unbelievable, you know, keys on server. These are supposed to be self custody wallets really, really not a good set up here.

25:01Let's take a look at Revolut though. This is also incredibly important for Bitcoiners as Revolut. I believe has crypto that you could buy and sell on there. I know also people used Revolut to be able to use something like RoboSats. And it was a payment infrastructure play within Fiat land. So a lot of bad news here for anybody that is affected by this. So threat actors who obtained sensitive Revolut customer information appear to have begun posting the information online and our threatening to release more data every day until Revolut pays. So they're sort of blackmailing them or holding it hostage and extorting them for money. The newly leaked information reportedly includes selfies and copies of identity documents belonging to the tennis player. To see you of online crypto casino. GamDom. Wow, man. What's up with what's up with tech companies?

26:02Creating someone like the worst names for their businesses ever. The hell is GamDom? That is just brutally bad. Heart goes out to you though, Felix and Alexander. I mean, terrible, terrible. And I know there's lots of people that aren't being reported of this. Of course, these are some sort of bigger names. We're going to start releasing more and more data every day until Revolut pays for leaking their customers. The attackers reportedly set on telegram. The exposed identity documents and facial verification images could increase the risk of identity theft. Revolut on Friday told customers that leaked data also includes customers full name, date of birth, occupation, contact information, account statements, and full transaction history, including records of Bitcoin transactions. This could be a disaster. There's going to be a leg effect between every one of these data breaches, right? One thing that I didn't have even really talked about was there's a third-party shipping company that had a data breach for treasure users.

27:03There's a third-party email news list company that Bitbox and Treasure were both using that got hacked and phishing email has got sent up. This is why I don't answer my phone. This is why I use email aliases or previously I just used one email account that I would use to sign up for stuff. I would never check that email again because that is just personal information. Again, this is way of information and potentially harmful links and phishing scams and all of that getting towards you. If they know that you have Bitcoin transactions, they know that you have a bear asset that if they get from you, you have no recourse. There's no middleman of you being able to freeze that or stop that. That is permissionless money. Bitcoin is incredibly, incredibly valuable and there is a value proposition around the way Bitcoin works that criminals actually do like it

28:12because it's a final settlement and can be mixed around and basically used semi-anonymously or at least in a way where they can extract the value out of that into a usable form for whatever they want to do. Let's see, Revolut did not provide further comment beyond its statements. When it said customer data was leaked due to a sophisticated external impersonation scam in which the attacker used an email address from a legitimate government agency domain email to submit fraudulent requests for information. They just asked this company, hey, I'm a government guy. Give me all your clients information and they complied. KYC is... KYC should be known as Kill Your Customer. It puts the customers at risk. It puts the individuals at risk.

29:13This is not for the benefit of you as an individual and I've been messing around with making a tutorial on RoboSats two-day because I've just had enough of it. I've had enough of the only way that you can get Bitcoin is through Coinbase. Well, what happens when Coinbase gets hacked, right? Which happened as well. I think it was part of their customer support service was extracting data or something like that again trying to blackmail them all this stuff. It still just continue to non-stop happen until we improve the way we operate as individuals. I think we put ourselves at unnecessary risk when we have to use KYC. I know it's very difficult to not use KYC. Watch out for some tutorials on this channel. As much as it might be doing non-KyC Bitcoin is trying to avoid something, it's trying to avoid your data getting into people's hands that you don't want your data in their hands.

30:17It's a very incredibly valid reason. It's so valid to not want KYC when it comes to your wealth. I think it's criminal actually to enforce so much as what Philip is saying in the comments here where certain organizations within certain countries are mandating it. I appreciate you guys all for tuning in. Thanks for watching The HOT OF REPORT. Keep your eyes peeled out there. Make sure not to click links even if they look official. If some government agency from an official government website asks you for all your customer data, think twice before giving it to them. Also protect your own data. Thanks everybody for watching. Thanks for tuning in. We'll see you next week on The HOT OF REPORT. We'll see you on some pre-recorded videos. I'll be making some soon. And we'll go from there. Thanks everybody. Goodbye.