MCS Crypto News - Issue #4

Crypto News Made Simple - Straight to your inbox, every Monday and Thursday

🕵️ The Incident

Mark Cuban faced a significant loss over the weekend. After months of not engaging with his crypto wallets, he decided to log in and unfortunately realized that he fell victim to a crypto scam, losing around $870,000 worth of various tokens.

🔍 What Happened

• Phishing Attack: Cuban likely clicked on a phishing link, a common tactic used by scammers to trick individuals into revealing sensitive data or downloading malware.

• Losses: Cuban's wallet was drained of U.S.-pegged stablecoins, staked ETH (stETH), SuperRare (RARE) tokens, and some Ethereum Name Service (ENS) domains.

• Alerted in Time: Thankfully, Cuban was alerted about the suspicious transactions in time to secure over $2.5 million worth of Polygon’s MATIC tokens by transferring them to a Coinbase exchange address.

💼 Mark Cuban's Response

Cuban acknowledged the incident, stating that he most likely had downloaded a fake MetaMask wallet application, which was the likely source of the phishing attack. He emphasized the need for heightened security measures and awareness while handling crypto wallets, especially after a period of inactivity.

🔐 Safety Tips for Beginners

As beginners in the crypto space, it's crucial to learn from such incidents. Here are some safety tips:

• Verify Sources: Always verify the sources of requests on a crypto wallet.

• Beware of Phishing Links: Be cautious about clicking on unknown links and downloading applications from untrusted sources.

• Regular Check: Regularly check and revoke permissions on your crypto wallets to avoid falling prey to scams after periods of inactivity.

🔍 Background

FTX was a cryptocurrency exchange that garnered attention with the help of several celebrities and influencers for promotions. Unfortunately, it faced insolvency in November 2022, and the promotional activities led to a class-action lawsuit against the celebrities involved. The core issue? Allegedly not disclosing the compensation they received for promoting FTX adequately.

📢 Recent Developments

• Settlements: NFL star Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash have chosen to settle the lawsuit. The details remain confidential, but this marks a pivotal moment in the ongoing legal battle.

• Others involved: Big names like Tom Brady, Shaquille O'Neal, and Naomi Osaka are still part of the lawsuit, with their fate yet to be decided.

💡 What Does This Mean for the Crypto World?

For the newbies in the crypto space, this scenario underscores the critical role of transparency and due diligence in cryptocurrency promotions.

Remember that you can trust no one - especially not celebrities. These people probably had no idea what they were promoting. Their manager comes to them with a promotional offer, they glance at it and sign the dotted line.

🔮 Looking Ahead

The legal landscape is evolving, with signs pointing to more settlements on the horizon. The involved legal teams are in confidential discussions, suggesting that we might hear about more settlements soon. It's a space to watch as the case unfolds.

📘 Your Takeaway

As you venture deeper into the crypto world, remember:

• Critical Eye: Approach promotions and endorsements skeptically and analyze them critically.

• Research: Always back your decisions with solid research to avoid falling for misleading promotions.

• TRUST NO ONE: Don’t trust - verify. In the crypto space, if the celebrities are on board, run as fast as you can in the other direction.

Bitcoin Dominance continues to increase.

SEC looks for court-help in their war with Binance.

One of the largest crypto conferences is only two days away.

Citigroup dives headfirst into the world of digital finance.

Bubblemaps raises $3 million - potential airdrop??

Over $50 billion of BTC held by entities.

That’s all for today. We’ll be back tomorrow with MCS Crypto 101 - Issue #5.

Thank you so much for subscribing to Make Crypto Simple.

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}