Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Gala Games $240 Million Token Exploit: Gala Games experienced a security breach resulting in the minting and theft of 5 billion GALA tokens, valued at approximately $240 million. The attacker sold 600 million tokens on Uniswap, causing a 20% drop in GALA's price.

2. Dark Web Market Owner Arrested: The FBI arrested Rui-Siang Lin, known as "Pharoah," at JFK Airport for operating Incognito Market, a dark web narcotics marketplace responsible for about $100 million in illicit transactions.

3. New York AG Settles with Genesis for $2B: New York Attorney General Letitia James announced a $2 billion settlement with Genesis Global Capital to compensate investors defrauded through the Gemini Earn program. The lawsuit accused Genesis of misleading investors about the safety and returns of their investments, resulting in over $1.1 billion in losses.

4. 📈Technical Analysis Masterclass - Are you looking deep into PEPE or ADA? Our technical analysis expert takes a dive into these tokens in UseTheBitcoin’s latest Youtube video ”Trading update for PEPE and ADA” or join our Discord channel for more alpha!

5. 💡Feature of the Day - Grayscale CEO Steps Down: Michael Sonnenshein, CEO of Grayscale Investments, announced his resignation effective August 15. He will be succeeded by Peter Mintzberg, a former Goldman Sachs executive, with CFO Edward McGee acting as interim principal executive officer.

   
   All this and more in today’s headlines!

📰 News Highlights:

🚨Gala Games $240 Million Token Exploit [Source][Source][Source]

On Monday, Gala Games (GALA) experienced a significant security breach, with an attacker exploiting the system to mint and steal 5 billion GALA tokens. This unauthorized minting resulted in the loss of tokens valued at approximately $240 million at the time of the exploit.

The attacker swiftly sold 600 million of these tokens through the decentralized exchange Uniswap, raising about $29 million and causing the GALA token price to plummet by 20% within an hour.

Gala Games CEO Eric Schiermeyer addressed the incident in a Discord post, clarifying that the compromised Gala Games admin address had been secured within 45 minutes of the breach being detected. "It's important to note our ETH contract for $GALA is secure and under the protection of a multi-sig wallet. It was never compromised," Schiermeyer assured. He added that the remaining 4.4 billion unsold tokens had been "effectively burned," meaning they are irretrievable and considered destroyed.

The attack was described as an "isolated incident" by Gala Games, with the token price stabilizing at around $0.04272 due to a broader market surge. This incident follows a tumultuous period for Gala, including a lawsuit in 2023 where Schiermeyer accused co-founder Wright Thurston of misappropriating $130 million in GALA tokens.

Gala Games has committed to enhancing its internal controls to prevent future incidents and is working with the FBI and other authorities to pursue the attacker.

🚔Dark Web Market Owner Arrested [Source][Source][Source]

The FBI arrested Rui-Siang Lin, known as "Pharoah," on May 18 at New York’s John F. Kennedy Airport. Lin, a 23-year-old, is accused of owning and operating Incognito Market, a dark web narcotics marketplace responsible for approximately $100 million in illicit transactions over nearly four years. Lin was charged with several offenses, including engaging in a criminal enterprise, narcotics conspiracy, and money laundering.

Authorities managed to track Lin by tracing cryptocurrency transactions from the dark web market to accounts in his name. The Justice Department reported that Lin's marketplace used Bitcoin and Monero for transactions, skimming 5% from every purchase. Lin allegedly reaped millions in personal profits through this operation, which came to an abrupt end in March following an exit scam.

Lin faces severe penalties, including a mandatory life sentence for the criminal enterprise charge.

The FBI has also issued a forfeiture order for the crypto assets in Lin’s Binance and Kraken accounts.

💼New York AG Settles with Genesis for $2B [Source][Source][Source]

New York Attorney General Letitia James announced a $2 billion settlement with Genesis Global Capital and its associated entities on May 20. This settlement is aimed at compensating defrauded investors who were misled through the Gemini Earn program, where Genesis allegedly lied about the safety and returns of their investments.

The lawsuit, initially filed in October 2023, accused Genesis of defrauding investors of over $1.1 billion. Genesis' interim CEO Derar Islim expressed satisfaction with the court's approval, emphasizing the firm’s goal of maximizing creditor value. The settlement specifically pertains to Genesis, while litigation continues against Digital Currency Group and other associated parties.

Other high-profile cases include actions against KuCoin and Celsius CEO Alex Mashinsky. The settlement ensures that Genesis will cease operations in New York, marking a significant regulatory enforcement milestone in the crypto space.

📈Technical Analysis Masterclass:

📉 Trading update for PEPE and ADA

Success in crypto trading requires adaptability, insight, and strategic decision-making. By closely monitoring market trends, recognizing resistance levels, and assessing fundamental value, traders can make informed decisions. Today, let’s check out PEPE and ADA!

PEPE Coin:

• Recent Gains: I recently entered the PEPE Coin market and experienced gains ranging between 40-50%.

• Decision to Sell: Despite bullish momentum, I decided to sell due to reaching resistance levels, indicating potential profit-taking among traders.

• Lack of Fundamental Value: PEPE Coin lacks practical utility, serving primarily as an entertainment coin for short-term fun rather than long-term investment.

• Future Outlook: While PEPE Coin might still rise given the overall bullish sentiment in the crypto market, I prefer to focus on recent price action. I will patiently await a breakout above resistance levels, anticipating the formation of new, higher support levels before considering re-entry.

ADA (Cardano):

• Recent Performance: In a recent video, I highlighted ADA's gradual ascent, noting a price of around $0.46. ADA now commands a price of $0.50, reflecting its upward trajectory.

• Profit Potential: This increase underscores the profit potential in informed trading decisions. By following our channel's technical reviews and market insights, viewers can capitalize on opportunities presented by cryptocurrencies like ADA.

• Strategic Trading: Success in crypto trading hinges on adaptability, insight, and strategic decision-making. By closely monitoring market trends, recognizing resistance levels, and assessing fundamental value, traders can navigate the volatile crypto landscape with confidence.

Stay informed and execute strategic trades based on a blend of technical analysis and fundamental understanding to maximize profit potential! Watch UseTheBitcoin’s latest Youtube video ”Trading update for PEPE and ADA” to learn more!

💡 Feature of the Day: 

📉Grayscale CEO Steps Down [Source][Source]

Michael Sonnenshein, the long-serving CEO of Grayscale Investments, has announced his resignation. Effective August 15, Sonnenshein will be succeeded by Peter Mintzberg, a former Goldman Sachs executive. Until then, CFO Edward McGee will act as the interim principal executive officer.

During his tenure, Sonnenshein was instrumental in launching the first U.S. spot Bitcoin exchange-traded fund (ETF), converting Grayscale’s Bitcoin Trust (GBTC) into an ETF on January 11. Barry Silbert, CEO of Digital Currency Group, praised Sonnenshein for steering Grayscale through significant growth and for his pioneering role in the cryptocurrency asset management sector.

Industry experts like Jim Bianco of Bianco Research have raised concerns about ETFs potentially drawing liquidity away from on-chain transactions, thus impacting Bitcoin’s role as a decentralized financial asset.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com