Does The Ledger Wallet Have A Backdoor? | This Week In Crypto

by | May 19, 2023 | News | 0 comments

Did Binance CEO Changpeng Zhao just hit the “unfollow” button on Elon Musk’s Twitter? Incredible!

There, crypto folks, as you know, the crypto world is always buzzing.

And that’s why, in this weekly article, we bring you some of the juiciest and most recent happenings from the crypto sphere.

Here are the headlines of crypto news for this week:

Decentralised Exchanges Shouldn’t Escape Regulatory Scrutiny, Says CFTC Chair

Will a potential regulation hinder the success and decentralised nature of Dex?

Recently, Rostin Behnam the Chair of the Commodity Futures Trading Commission challenged the notion that decentralised exchanges are exempt from U.S. regulations.

In an interview on the Odd Lots podcast, Behnam asserts that overlooking the regulation of DExs based on the basis that they operate autonomously is a flawed perspective.

He emphasised that the focus should be on the products being offered and the responsible parties involved.

“It’s easy to suggest, ‘Oh there’s no institution, there’s no individual, it’s just code, you can’t regulate that, it’s self-effectuating,’ but that really is the wrong set of questions. It’s really about what are U.S. customers being offered and exposed to? And who is either the individual or group of individuals who set up that entity, that code, to offer those products?” – Rostin Behnam

Tether to Put 15% of Profits Into Bitcoin

Is this bullish news for Bitcoin?

Tether takes a proactive step by revealing a fresh investment strategy that involves regular purchases of Bitcoin using a portion of its profits.

The goal is to bolster its portfolio and align it with the long-term value of the cryptocurrency.

This move is an earnest attempt to address transparency concerns and mitigate controversies surrounding its investment practices.

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The SEC Declares Filecoin a Security

Is this the end of the road for the FIL coin?

The FIL token of Filecoin has been officially classified as a security by the U.S. Securities and Exchange Commission (SEC).

Additionally, the SEC has requested that Grayscale retract its application to align its Filecoin (FIL) Trust product with characteristics resembling those of a public company.

However, Grayscale holds a differing viewpoint from the SEC’s assessment and intends to present its legal stance to the regulatory authority.

Apple’s App Store Grants Approval to Axie Infinity

Axie Infinity, the once-powerful NFT-centric game, has received approval from Apple’s App Store.

The game is now accessible on iOS in select countries across Latin America and Southeast Asia

Interestingly, the initial launch of the app will exclude the Philippines, despite it being Axie’s biggest market.

Currently, Sky Mavis, the creator of Axie Infinity, is conducting tests in smaller markets as part of its preparations for a global launch.

The company believes that expanding to iOS will play a significant role in expanding its reach to a broader audience and revitalising its success.

Well, let’s remain optimistic and hope that this development may potentially lead to a resurgence of the AXS token. What are your thoughts on this?

Paxful, A Global P2P Exchange, Stages A Comeback Amidst Shutdown Attempts

P2P platform Paxful has successfully resumed operations and is being run by a Delaware lawyer following a month-long shutdown period.

The company said this in a blog post.

“After a month away, we’re happy to announce that the Paxful marketplace is back online,” the company wrote. “In early April, we faced a difficult decision to temporarily suspend the marketplace to protect all of our customers and Paxful’s future.”

The platform came to a halt in April due to internal disputes between the founders, Shaback and Ray Artur Youssef, leading to a tumultuous period for the company.

The reopening of Paxful is certainly good news for traders and the broader crypto community, considering its significant market share in the P2P crypto industry.

Sign up with Paxful.

Ledger Crypto Wallet Controversy: Backdoor Vulnerability

The introduction of a new security feature by Ledger, a prominent hardware wallet manufacturer, has sparked a wave of criticism on social media platforms.

The new feature called Ledger Recover involves breaking down a user’s seed phrase into three encrypted shards that are sent to separate third-party entities.

Typically, these shards are created to act as a backup, allowing the seed phrase to be recovered if required in the future.

Critics raise concerns that the involvement of third parties in the Ledger Recover feature could pose a potential backdoor, enabling them to gain access to the seed phrase and potentially compromise the security of one’s cryptocurrency holdings.

Ledger Wallet, however, reaffirms the safety of the service, reassuring users about its security measures and emphasising that it is an optional tool.

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Changepeng Zhao Unfollows Twitter CEO Elon Musk on Twitter

Changpeng Zhao, CEO of Binance, is no longer following Elon Musk on Twitter as reported by @BigCryptoAlert.

As anticipated, the tweet ignited intense speculation within the crypto community.

In a response tweet, @lucrafund tweeted this: “Because Elon invited @eToroUS to be Twitter’s crypto exchange instead of Binance, even though it was CZ who helped fund his acquisition of Twitter.”

It is worth noting that the reason behind CZ’s decision to unfollow Musk is still unclear.

Furthermore, The Blocks reported that a Binance spokesperson confirmed the continuation of Binance’s $500 million investment in Twitter from last year. 

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