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BREAKING: 🇺🇸 Silicon Valley Bank $SIVB shut down by California regulators. @WatcherGuru

Trading halted for Signature Bank, First Republic and PacWest too https://www.cnbc.com/2023/03/09/stock-market-today-live-updates.html Also SVB Financial was unable to meet its capital fundraise goals (>$2B+ cash), so it appears they're now looking for a buyer for Silicon Valley Bank at this point. Folks keep saying that this isn't going to spread through the banking sector, but its clear there's something very wrong going on behind the scenes at SVB.

Trading Halted for Signature Bank and Silicon Valley Bank This is starting to get bad. SVB fell 62% in pre-market trading today (Friday) after having already shed 60% the day before. SVB Financial Group's stock did not open for trading today. https://www.cnbc.com/2023/03/10/silicon-valley-bank-tumbles-for-a-second-day-weighing-on-the-bank-sector-again.html

SVB was Heavily Involved in Crypto Banking - Not Sure How Deep Took some time a few weeks ago to really try to dig into what SVB's relationship was to the crypto space...was very difficult to find any concrete information. What we know publicly is that they participated in a fundraise round for the company, 'fireblocks' (so did everyone though it seems). However, there's little to no additional information about how they've been involved in the crypto space outside of that. We can affirm from CoinDesk's reporting that they provided banking services to Coinbase way back in the day —- https://www.coindesk.com/markets/2021/02/25/coinbase-gave-silicon-valley-bank-stock-warrants-for-access-to-usd-payments/ Apparently they entered into an agreement to provide banking services for Coinbase in exchange for a "stock warrant". The warrant granted them "the right to buy more than 400,000 class B shares of common stock [of Coinbase] at a little over $1 per share." Worth noting that, "Class B shares have 20 times the voting power of the Class A shares that Coinbase [was] seeking to list on Nasdaq...The Class B shares [are also] convertibel at any time, on a one-for-one basis, to Class A shares." At the time of launch, Coinbase's shares (Class A) were going for north of $300/pop. 400k of those shares would be valued at $130M+. What's even more curious here is the fact that SVB terminated their relationship with Coinbase back in 2015 and basically told them to find someone else to do banking with (still didn't void the stock warrants). At the time, they had extended a line of credit to Coinbase on top of the banking services they granted them.

Silicon Valley Bank being on the Verge of Toppling is a Big Deal Folks may not be too familiar with them, but they're another name that dumped a ton of money into FTX. https://www.wsj.com/articles/silicon-valley-poured-money-into-ftx-with-few-strings-attached-11668103682 These guys are arguably a lot bigger than Silvergate and Signature though. If rumors are true and they're really on the brink of collapse, then this is really going to intensify legislative measures pertaining to crypto. Silvergate going under was already a bad look. Not sure where Signature stands currently - but they've taken a beating as well. Questions swirling around "Farmington State Bank" (Moonstone) still linger too. They were essentially an arm of Deltec (same guys that wrote the attestation for Bitfinex back in 2018 that started with the header, "Dear Sirs"). Worth keeping an eye on this.

Following Up on Bitcoin Core's Ties to Known Pedophile - Jeffrey Epstein For some reason, the link to that Twitter thread is dead (not sure if the user is suspended or thread got deleted). So figured it was worthwhile to follow up on that and provide links to credible sources (we don't do pizzagate theories in here). 1. NYT covering Joi Ito's resignation from MIT Labs after it was revealed they were accepting donations from Jeffrey Epstein - https://www.nytimes.com/2019/09/07/business/mit-media-lab-jeffrey-epstein-joichi-ito.html (keep in mind he was on the board of the 'The New York Times Company' as well) 2. MIT knew it would be seen as highly inappropriate for them to receive donations from Jeffrey Epstein...so it went out of its way to hide them - https://www.newyorker.com/news/news-desk/how-an-elite-university-research-center-concealed-its-relationship-with-jeffrey-epstein 3. In 2015, a leaked document from the Bitcoin Foundation was shared by 'Bitcoin Magazine' (founded by Vitalik Buterin) which detailed a 'survival plan' for the Foundation in the aftermath of (then) Board Member Olivier Janssens' explosive claim that the Foundation was "effectively bankrupt" - https://bitcoinmagazine.com/business/developing-bitcoin-foundation-survival-proposal-financials-leak-1428391704 4. Following the apparent funding troubles Core faced, MIT Media Labs created the 'Digital Currency Initiative', which would go on to effectively become the 'funding arm ' for the Bitcoin Foundation - which helped funnel money into Bitcoin Core's efforts - https://bitcoinmagazine.com/business/gavin-andresen-core-developers-join-mits-digital-currency-initiative-1429743725 ("It now appears that MIT is beginning to assume leadership in the Bitcoin development space"....Joi Ito is on record as stating, "I'm offering MIT as a neutral academic home for some of the conversations and the technical coordination which I think will give a lot more stability to Bitcoin, which right now is a little bit fragile" and Gavin Andresen went on record saying, "I'm pleased to announce that I've joined the MIT Media Lab's newly launched Digital Currency Initiative to continue my work on the Bitcoin project" also "Wladimir van der Laan and Cory Fields, both formerly of the Bitcoin Foundation, have also decided that MIT is the best place to continue their work on Bitcoin Core and have joined the Media Lab as well") ^^ In case you didn't know Wladimir van der Laan had been the lead maintainer for Bitcoin from 2015/2016 all the way up until 2022.

Bitcoin Under $20k = Shopping Spree The monthly resolution never lies. This consolidation was expected if you’ve been watching the daily, weekly & 2-week. The monthly resolution looksin Under $20k = Shopping Will show you all via some charts soon.

How to Defend Against Private Key Recovery via Signature None of us are cryptographers & asking folks to audit wallet software before using it is impractical. Best practice for Bitcoin, Bitcoin Cash, Litecoin, Dogecoin, Avalanche or any other UTXO based blockchain is to use each address once. That means you send your funds to whoever the intended recipient is and then you designate an unused address as your “change address”. If you do that, it doesn’t matter if the signature was created in a faulty manner.

If Kudelski Coudl Crack Bitcoin Wallets, You KNOW Avalanche is Vulnerable Let's talk code for a minute. Their AvalancheGo library inherits from btcd. They do not use Bitcoin’s secp256k1 library which has underwent a significant amount of scrutiny. Kudelski cracked a LOT of Bitcoin addresses. Not Avalanche. BITCOIN. They didn’t hack anyone, scam, or even interact with users. All they did was peel signatures off the blockchain. That doesn’t mean Bitcoin itself is vulnerable, but it indicates at least a few wallet implementations out there are questionable. Again, big difference between Bitcoin & Ethereum signatures is the latter uses Keccak vs SHA256.

Kudelski Proved Me Right about AVALANCHE Jesus, nobody corrected me on this? This message is in reply to the pinned message in this chat which had "Solana" in the title and not Avalanche. In case, you're confused about what I'm talking about, I recently published a 4-part series exposing the weaknesses in Avalanche's cryptographic implementation (signatures in specific): part one, part two, part three, part four. This riled up plenty of Avalanche fanboys that came to their defense claiming that this was all fake and FUD of some sort. Perhaps they would've had a leg to stand on had Kudelski not published this bombshell report recently: https://research.kudelskisecurity.com/2023/03/06/polynonce-a-tale-of-a-novel-ecdsa-attack-and-bitcoin-tears/ ^^ Again, really really urging people to give it a read. Its written a lot better than the pieces that I published and they do a pretty remarkable job of getting straight to the point to explain the issue at hand & how they were able to leverage it to crack several Bitcoin wallets.

Not saying Bitcoin Core itself supports pedophilia, but Luke Dash Jr., certainly didn’t go out of his way to renounce Jeffrey Epstein or the Lifeboat Foundation. Curiously, he’s an outspoken critic of “ordinals”. Guess he finds it worse for Bitcoin to be affiliated with NFTs than Jeffrey Epstein 🤷‍♂️ Coming from a guy that notes his Christian faith in the bio of his Twitter profile. I tagged him on Twitter about this and he claimed it was all a lie even though his name is clearly on the site and had been for some time (since he was a contributor & participant).

Bitcoin Core's Ties to Known Pedophile - Jeffrey Epstein You know, Luke Dash Jr., was another high ranking member of the Lifeboat Foundation (where Jeffrey Epstein was an executive). Other members of that organization include Christine Duhaime and Francis Pouliot. Interestingly enough, it appears that Jeffrey Epstein was actually funding Core through the MIT Labs (this is not a fucking conspiracy theory, this is fact - Joi from MIT Labs resigned over this) https://twitter.com/skylark_bitcoin/status/1170489438994128897?s=20

Speaking of Pedophiles — Founder of Polkadot is One Too (Gavin Wood) Just a reminder because these people don’t deserve to slip under the radar & hide behind the veil of normalcy. This guy wrote fan fiction about r**ping a child just a year or two before he started working on Ethereum. He was a 30+ year old, grown man at the time. Does this sound normal to you? https://www.buzzfeednews.com/article/ryanmac/ethereum-cofounder-sex-underage-girl-fiction

Context: Twitter Had Major Issues with India Over Their Refusal to Remove Child Exploitation Content Under Jack Dorsey, Twitter defied direct orders from India to remove child exploitation content from their platform. The fact they had to be contacted directly is already egregious enough - but their blatant refusal to remove said content afterward is shameful. Never liked Jack Dorsey. He's a weirdo that went out of his way to make Twitter a safe space pedophiles. Good riddance to that clown and anyone like him.

Strange how when Jack Dorsey left & new management came all the child **** started getting kicked off the platform. There’s a shameful underbelly of weirdos & losers in blockchain that celebrate and endorse that content. Can’t wait until we purge every last one of these vermin.

JUST IN: Twitter suspended 800,000 accounts that distributed child sexual abuse material in February. @WatcherGuru

Thanks Kudelski for Proving Me Right about Solana If you’re curious, read the report here: https://research.kudelskisecurity.com/2023/03/06/polynonce-a-tale-of-a-novel-ecdsa-attack-and-bitcoin-tears/ Tl;dr - Kudelski cracked a ton of addresses on Bitcoin with faulty nonces (via signature collection, message recovery then analyzing the mathematical relationship between signatures to recover the private key). Almost all cracked wallets were cracked post-2016 (after Bitcoin cleared lower ‘s’ scalar values by default & had implemented deterministic RFC6979 signatures). Oh, and Kudelski open sourced all of the code they used to collect the data, aggregate transactions, parse them down to r,s values + original message + associated public key & the code they used to iterate their novel “recurrence relation” algorithm over curated signatures for each specific address to recover private keys from these signatures. Ethereum curiously proved to be safe (they use keccak256 instead of sha256 for signatures right? I think this may be a vector worthy of exploration bc a recently expired informational IETF RFC advised against using HMAC period (KMAC instead) but insisted if you do, then don’t use sha256 - instead choose sha3/keccak) Oh, also - in almost every instance the funds were already gone from vulnerable addresses (so looks like someone already figured this out & managed to successfully exploit said wallet addresses).

Polynonce A Novel Attack against ECDSA. Paper, Code, and associated Story https://ift.tt/JuRxLfw Submitted March 06, 2023 at 07:43PM by nhamiel via reddit https://ift.tt/hCZnrQt