The cryptocurrency space, which has opened up possibilities for financial innovation that we’ve never seen before, is home to some of the worst #badactors out there. As we’ve written, laundering stolen funds through crypto is increasing. Thanks to the hard work and dogged persistence of on-chain analysts such as ZachXBT, law enforcement agencies are finally beginning to follow suit. Only recently, U.S. authorities shut down eXch, a darknet swapping service. ZachXBT’s investigative work was critical in bringing this once-in-a-lifetime operation to an end. MetaBlock X is on the ground to demystify this operation. They’ll showcase the contribution that these brave, independent blockchain investigators are making to the fight against crypto crime.
Bullish Outlook for XRP
The eXch takedown and ZachXBT’s role are undoubtedly the biggest news to be found in the limelight. As you do, remember that the larger crypto market is dynamic and constantly shifting. Specifically baby XRP has been doing really well and looking bullish with all the strong signs leading up to a wonderful bull run breakout. This further exemplifies the quickly evolving nature of the crypto landscape, where there are tremendous opportunities and risks.
Potential Breakout Target of $2.50
They’ve predicted $2.50 as a possible breakout target for XRP, provided it can break through important resistance levels. This bullish sentiment is a clear indication that XRP is gaining a lot of interest lately. Regulatory clarity and technological advancement are the fires stoking this investment bonanza. Whatever the outcome, the chance of this breakout reminds us all of how much money can be made in this crypto bull market.
Key Resistance Level at $2.25
The main resistance level XRP is facing is at $2.25. Addressing this barrier is essential for XRP to achieve its $2.50 price target. The Fibonacci 0.618 resistance level is a key obstacle that buyers must surpass to push the price high. Resistance breaking through this level may indicate the start of a bullish trend.
Support Levels for XRP
Knowing how to recognize support levels is equally as important as knowing how to recognize resistance levels. These levels provide a cushion to stick around in case the price drops further to pick up bitcoin at a lower price.
Fibonacci Levels Indicate Support at $2.00
A Fibonacci retracement indicates a strong support level at $2.00 for XRP. This high would provide a potential support pad, should the price pull back from its bullish path. Fibonacci levels are one of the most popular technical indicators used by traders and they can be used to determine support and resistance levels. CoinMarketCap The $2.00 level presents a good opportunity for investors to accumulate more XRP.
Altcoins Positioned for Recovery Against Bitcoin
Aside from XRP, a number of altcoins have bottomed out and are rallying against Bitcoin. This might indicate an overall shift in market sentiment, as investors appear to be diversifying their portfolios past Bitcoin. Underneath these phenomena would be the continued innovation in the broader altcoin project space and increasing adoption. We’ve said it before and we’ll say it again – the performance of altcoins compared to Bitcoin is the hunger gauge of crypto market health.
Coinbase's Strategic Moves
Coinbase is the biggest of the initial crypto exchanges. It’s doing so by making overtly strategic plays to grow its tentacles and control over the crypto space. These strategic moves show the company’s ambition to become a primary player in the burgeoning digital asset space.
Acquisition of Deribit for $2.9B
Coinbase putting in an all-stock acquisition of crypto derivatives exchange Deribit for $2.9 billion next year is a big deal. Deribit is the largest crypto derivatives exchange by volume. A profitable acquisition of Deribit would provide Coinbase with a strong foothold in the rapidly growing derivatives market. Adding this acquisition would be a big boost to Coinbase’s offerings and help it bring in more sophisticated traders. The strategic move signals Coinbase’s competitive pursuit of offering value-added services and features to protect its market share within an ever-growing crypto universe.
Coinbase's Stance Against Bitcoin Maximalism
Coinbase’s opposition to Bitcoin maximalism makes sense, as the company has long called for a more inclusive and diverse crypto ecosystem. This hire is a sign of the company’s faith on the promise of other cryptocurrencies and blockchain technologies. Coinbase's support for a broader range of digital assets could foster innovation and attract a wider audience to the crypto space. This is a welcome departure from the Bitcoin maximalists’ vision of a world where Bitcoin reigns supreme as the only cryptocurrency.
Bitcoin Market Dynamics
Even Bitcoin’s performance—Bitcoin being the undisputed leader of the market—very much determines how the overall market is doing. This is particularly true given how each of its price movements and adoption rates can affect the entire crypto environment.
Recent Surge Over $104,000 and Its Impact
As a recent example, Bitcoin’s exceeding $104,000 this week sent waves of rising prices throughout the market. This recent wave has significantly improved investor sentiment, bringing an influx of capital and interest into the crypto industry. Bitcoin’s new price milestone further validates its status as the dominant store of value and inflation hedge. The spike shows the deepening institutional appetite for Bitcoin.
BlackRock's $4.44B Investment in Bitcoin
BlackRock’s $4.44 billion investment into Bitcoin helps to further validate it. This investment is further evidence of the increasing acceptance of Bitcoin as an asset class amongst institutional investors. BlackRock’s entry would open the floodgates for other institutional capital to surge into the crypto-market. This massive investment serves as further validation of Bitcoin’s legitimacy as an asset class.
Altcoin Market Strategies
The altcoin market can be tricky, so proceed with caution. Predicting market trends, knowing which projects have the most promise, and proactively managing that risk are all determining factors in truly successful investments.
Van de Poppe’s Approach for Investors
At the very least, long-time analyst Michaël van de Poppe says investors should minimize risk and look for more bullish altcoins. His strategy prioritizes diversification and altcoin selection, putting a major focus on qualified altcoins. By following Van de Poppe’s analysis, investors can better position themselves to profit and avoid pitfalls in the volatile altcoin market. His counsel couldn’t be more timely in a market that now seems defined by instability and unpredictability.
Altcoins Set to Rebound Amid Bitcoin Challenges
Altcoins set to recover while Bitcoin struggles. This rebound might be fueled by fundamentals like innovation on altcoin projects and greater adoption. When Bitcoin’s market dominance drops, that opens the door for altcoins to take some of their market share. Investors should be cautious and do thorough research before taking on altcoins that have strong fundamentals and growth potential.
Regulatory and Market Developments
Of course, regulatory developments and market changes are other key forces that will continue to drive the crypto landscape. Keeping abreast of these developments is crucial to investors and participants in the industry.
Coinbase's Revenue Miss Amid Market Changes
Coinbase’s massive revenue miss last week further underscores the harsh reality that the disruptive market change has wreaked havoc on crypto business models. This miss further highlights the difficulties crypto exchanges are encountering during a highly volatile market environment. Considerations like regulatory uncertainty and growing competition may lead to potential downturns in revenue. Despite all these hurdles, Coinbase is still at the top of the crypto industry.
ZachXBT's Investigation into Crypto Crime
ZachXBT’s work uncovering crypto criminality is an important thing for the integrity and ecosystem of crypto to continue. His work protects the integrity of our communities by helping to expose illicit activities and bring criminals to justice. Work like ZachXBT’s is essential to establishing trust and confidence in the crypto market. His investigations focused on the cutting edges of our economy are essential for combating money laundering and other financial crimes in the crypto space.
Ethereum's Performance and Prospects
Ethereum, the number two cryptocurrency by market cap, remains consistently popular among crypto users and has important use cases in the cryptocurrency world. Its performance and prospects are keenly followed by investors and other industry participants.
Price Increase Following US-UK Trade Breakthrough
Ethereum’s price surged after the discovery of a US-UK trade deal. This is an encouraging sign that positive economic developments continue to provide a boost to the crypto market. The trade agreement would raise investor confidence thus increasing investment in Ethereum. Such a correlation, though unfortunate, serves to emphasize how much the crypto market is still tied to the global economy.
Open Interest Reaches $25 Billion, Targeting $2,550 Resistance
Ethereum open interest flies to $25 billion, eyeing $2,550 resistance. This is a very positive sign that bullish sentiment is strong and the Ethereum market is becoming more active. Open interest, or OI, measures the total number of outstanding derivative contracts. A rise in open interest indicates a growing interest in trading Ethereum. Moving above the $2,550 resistance area would be a positive sign for continued ETH price appreciation.
ZachXBT: The Crypto Detective
ZachXBT has recently gained notoriety in the crypto community for hard work exposing fraud, scams. Since 2021, he’s helped law enforcement track down stolen funds and uncovered nefarious actors. His leadership, tireless efforts, and dedication have made a lasting impact in the fight against crypto crime. His work is making an important contribution to closing that enormous gap. Traditional law enforcement has a hard time even just keeping up with the rapid speed and quick evolution of the world of cryptocurrency.
ZachXBT’s method is based on painstaking analysis of blockchain data to follow the trail of funds. He does this by examining the publicly available information to identify trends and relationships to connect the dots. This allows him to trace embezzled money to particular people or organizations. He typically starts his investigations with one clearly suspicious transaction. From there, he digs deeper to expose intricate webs of criminal enterprises.
Funding the Fight Against Crypto Crime
What makes ZachXBT’s story even more incredible is that his research has been almost exclusively funded by cryptocurrency donations. Since 2021, he raised roughly $1.3 million in contributions from the crypto community. This exceptional support underscores the depth of community support for his leadership and advocacy. Decentralized funding is one of the most important aspects of this crypto community’s power to uplift independent investigations and help fight crime with smart tools.
Exposing North Korean IT Workers
Together with some independent researchers, ZachXBT discovered a far-reaching operation involving at least 30 North Korean IT workers. These people had embedded themselves in tech companies and were getting their payouts in crypto. These workers used fraudulent identities to obtain remote positions. Worryingly, they channeled their profits back to North Korea, which might be used to help fund the rogue state’s weapons programs. This investigation highlights the potential for cryptocurrency to be used for illicit purposes and the importance of vigilance in the crypto space.
The eXch Takedown: A Victory for Crypto Security
The recent takedown of eXch, a darknet crypto swapping service, is a milestone win in the battle against crypto crime. German police seized €34 million in crypto and 8TB of data from the service, effectively dismantling a major laundering hub linked to $1.9 billion in criminal activity. This is where ZachXBT’s invaluable on-chain analysis proved to be key in this operation.
eXch was widely used by criminals to launder their proceeds of crime. This feature enabled users to exchange various cryptocurrencies without revealing their original source, effectively obscuring the fund’s origin. Crooks went to the service to wash their cash from designs consisting of drug dealing. These were all activities that featured the illicit drug trade, ransomware attacks, and fraud.
Genesis Creditor Hack Connection
Of all the recent eXch takedowns, this one is special because of its reported links to the Genesis Creditor hack. Genesis, a major crypto lending platform, filed for bankruptcy in early 2023, owing its numerous creditors large sums. It was eventually revealed that a portion of the stolen funds of the Genesis hack were laundered through eXch. This was largely thanks to the invaluable evidence that ZachXBT’s investigations on this connection provided to law enforcement.
ZachXBT's Role in the eXch Investigation
ZachXBT was instrumental in tracing the flow of funds in the eXch case. He wasn’t finished – he established who was doing what in the process. His analysis created a laser-focused case against eXch and its operators. This past Thursday, after months of investigation, this resulted in the seizure of the service and the arrest of multiple individuals. This case demonstrates the effectiveness of on-chain analysis in combating crypto crime and the importance of independent investigators like ZachXBT.
Specific Examples of ZachXBT's Investigative Work
ZachXBT’s recently discovered investigative works have been instrumental in many major breakthroughs, taking steps in the fight against crypto crime. Here are a few specific examples:
- Uranium Finance Theft: ZachXBT identified a $25 million theft from crypto firm Uranium Finance, much of which appeared to have been laundered through the purchase of rare Magic: The Gathering cards. This case highlights the creative ways that criminals are using to launder crypto funds.
- FBI Seizure of Crypto Assets: In October 2022, the FBI seized more than $200,000 worth of crypto assets from a teen suspect identified by ZachXBT, including a diamond watch. This case demonstrates the effectiveness of ZachXBT's work in identifying and tracking down criminals.
- Tracing Stolen Funds and Scams: ZachXBT has traced billions of dollars in stolen funds and scams since he began his work as an amateur investigator in 2021. His efforts have helped to recover millions of dollars for victims of crypto crime.
The above examples show how powerful ZachXBT’s work can be and why independent blockchain investigators are crucial in the fight against crypto crime. His criminal investigations returned directly around $210 million in criminal crypto proceeds. Moreover, he confiscated another $225 million in state money.
The Importance of Independent Blockchain Investigators
The work of independent blockchain investigators like ZachXBT is crucial for several reasons:
- Filling the Gap: They fill a gap left by traditional law enforcement, which often lacks the expertise and resources to effectively investigate crypto crime.
- Decentralized Approach: Their decentralized approach allows them to operate independently and without the constraints of government bureaucracy.
- Community Support: They are supported by the crypto community, which provides funding and resources to help them carry out their work.
- Transparency: Their investigations are often transparent and public, which helps to build trust and accountability in the crypto space.
Preemptive Action Against Illicit Digital Finance
The eXch bust joins other major Germany crypto seizures. Most important is the statement’s recognition of a growing global trend to implement the most proactive measures possible against illicit digital finance. Crypto criminals are outsmarting us all, a million times every day. So naturally, law enforcement has no choice but to stay ahead of the curve. By proactively targeting laundering hubs and other illicit services, law enforcement agencies can disrupt criminal activity and protect the integrity of the crypto ecosystem.
The Fight Continues
The fight against crypto crime is just beginning. We know the crypto market is still new and developing in many ways. Just as it does, criminals will always find new and creative ways to take advantage of that technology for their own gain. Today, the crypto community is pushing back against these attacks. They are propped up by the efforts of independent blockchain investigators such as ZachXBT and the growing know-how of legislation enforcement agencies. The eXch takedown is indeed a huge victory, but it is equally a reminder that the fight needs to go on.
Join us on MetaBlock X, as we bring you the most cutting-edge developments trending in the crypto space. We’ll touch on what’s being done so far to fight crime in the crypto space. Stay tuned for more insights and analysis.
