Israel: Crypto, Spies, and Kidnapping

Hello, and welcome to De.Nomics newsletter, your daily digest to stay ahead in the world of Web3 and decentralized technologies at a regional focus. Today, we have plenty of trending news and stories. So, get your cup of tea and some biscuits, and let’s go ahead.
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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Israel used Cryptocurrency to recruit spies and carry out operations.

• Visa to pilot Web3 customer loyalty service.

• BlackRock to cut 3% of workforce ahead of Bitcoin ETF deadline

• Coinbase plans acquisition to expand in the EU.

• The founder of Taiwan’s ACE Exchange was arrested for fraud.

• One-third of crypto thefts in 2023 are affiliated with North Korea.

Global Biscuits

Israel used Cryptocurrency to recruit spies and carry out operations.
Israel's intelligence agency, Mossad, is accused of using cryptocurrency to recruit spies in Turkey to track down and kidnap Palestinians living there, according to Turkish authorities. The Turkish interior minister announced the detention of 34 people linked to Mossad. Allegedly, recruits were paid in crypto through intermediaries, live couriers, and other means to avoid traceability. Tensions between Turkey and Israel have escalated, with accusations of espionage raising concerns about a potential larger conflict in the Middle East.

Visa to pilot Web3 customer loyalty service.
Visa is piloting a Web3 loyalty service, the Visa Web3 Loyalty Engagement Solution, allowing brands to create digital wallets for customers to store reward points and experiences. The platform aims to engage customers through gamified giveaways and immersive treasure hunts. Traditional loyalty programs have struggled to evolve, and Visa's solution, developed in partnership with SmartMedia Technologies, aims to change the loyalty experience by rewarding customer engagement beyond transactions. Visa has been active in the crypto space, launching a crypto advisory unit in 2021 and partnering with various crypto projects.

BlackRock to cut 3% of workforce ahead of Bitcoin ETF deadline
BlackRock, the world's largest asset manager, is reportedly planning to cut around 3% of its global workforce, impacting approximately 600 employees. The move is part of routine internal adjustments based on employee performance over the past 12 months. The report suggests that BlackRock is anticipating favorable news from the U.S. Securities and Exchange Commission (SEC) regarding its spot Bitcoin ETF application, with expectations of approval on January 10. The SEC's deadline for the BlackRock Bitcoin ETF application is January 15. Other asset managers, including Valkyrie, Grayscale, Bitwise, Invesco, Fidelity, and more, have also recently submitted amendment forms for their spot Bitcoin ETF applications.

Tastes of the regions

Coinbase plans acquisition to expand in the EU.
Coinbase is in the process of acquiring a MiFID-licensed company based in Cyprus to expand its derivatives offering in the European Union. The acquisition is intended to provide Coinbase with the ability to offer cryptocurrency-based derivatives in Europe. Currently, Coinbase only offers spot trading in the EU, and the acquisition is subject to regulatory approval. The move aligns with Coinbase's goal to capture more of the global crypto market claimed by derivatives, which constitutes around 75% of the market. The specific name of the company being acquired has not been disclosed.

The founder of Taiwan’s ACE Exchange was arrested for fraud.
David Pan, the founder of ACE Exchange, one of the major cryptocurrency exchanges in Taiwan, was arrested for alleged fraud. Along with 13 other suspects, Pan is accused of using false advertisements on social media to attract investors into worthless cryptocurrencies, including MOCT. The police seized assets worth at least $6.4 million in illegal gains. ACE Exchange, which listed MOCT in 2019, plans to delist the MOCT-TWD trading pair in response to the allegations. The exchange clarified that the arrested suspects are not ACE employees, and Pan ceased daily operations involvement in 2022.

One-third of crypto thefts in 2023 are affiliated with North Korea.
North Korea-affiliated hackers were reportedly involved in one-third of all cryptocurrency exploits and thefts in 2023, accumulating around $600 million in funds, according to TRM Labs. This brings North Korea's total gains from cryptocurrency-related activities to almost $3 billion over the past six years. Although the figure is about 30% less than in 2022, the use of stolen crypto funds by North Korea for weapons development raises national security concerns. The drop in overall cryptocurrency hack amounts in 2023 is attributed to various factors, including fewer major hacks, successful law enforcement actions, improved cybersecurity controls, and price volatility.

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