In a surprising turn of events, the scammer responsible for the recent theft of over $71 million worth of wrapped Bitcoin (WBTC) has initiated the refund of a portion of the stolen funds to the victim.

The scammer, believed to have executed an “address poisoning” attack, stole 1,155 WBTC from the victim before selling the entire loot for 22,960 ETH. This ETH was then dispersed across multiple addresses, presumably for obfuscation and money laundering purposes.

Victim Receives ETH Refunds

Following the theft, the victim began receiving ETH transfers from the attacker, signaling a potential negotiation between the two parties. The attacker initially reached out to the victim via an on-chain message, requesting a Telegram address. Alongside this message, a transfer of 51 ETH ($152,000) was made.

Significant Return of Stolen Funds

Security firm PeckShield reports that the attacker has transferred a total of 11,446.87 ETH ($34.7 million) back to the victim’s address, constituting approximately 50% of the stolen funds. This unexpected development offers a glimmer of hope for the victim and underscores the complexity of cybercrime negotiations.

The identity of the Attacker Remains Elusive

Despite ongoing investigations, the identity and location of the hacker remain undisclosed. While SlowMist‘s threat intelligence network identified several IPs suspected to be associated with the hacker, originating from Hong Kong, the possibility of VPN usage complicates efforts to pinpoint the attacker’s true identity.

The saga of the $71 million WBTC theft and subsequent refund highlights the evolving landscape of cryptocurrency-related crimes and the challenges faced by security firms in tracking and apprehending cybercriminals.

Bitcoin’s price soared on Tuesday morning, reaching a two-week high above $64,000 (£48,906), marking a significant uptrend in the cryptocurrency’s value.

Bitcoin Hits $64,000 Mark

At 8:50 am in London on Tuesday, Bitcoin surged 8.2% to $64,001.77, hitting a two-week high against the dollar. This increase in value also propelled Bitcoin’s market capitalization back above $1 trillion.

Recovery from Recent Pullback

The rally in Bitcoin’s price comes as the cryptocurrency recovers from a recent pullback. In late February, Bitcoin achieved a new all-time high above $58,000 before experiencing a drop to below $44,000. However, since the beginning of the month, Bitcoin’s price has been rebounding steadily.

According to Naeem Aslam, chief market analyst at Avatrade, Bitcoin has overcome most of its obstacles and is now out of the “trouble zone.” Aslam predicts that the next target for Bitcoin’s price is the all-time high, with potential further gains towards $70,000.

Institutional Adoption Boosts Bitcoin’s Rally

Bitcoin has experienced a remarkable rally of over 350% since last October, largely driven by increased institutional investor adoption. Companies like Square and Tesla have made significant investments in Bitcoin, with Square investing over $200 million in the cryptocurrency and Tesla disclosing a $1.5 billion investment.

Mainstream financial institutions are also entering the cryptocurrency market, with UK asset manager Ruffer allocating 3% of its assets to Bitcoin and Goldman Sachs restarting its trading desk for the digital asset.

Bitcoin’s Tipping Point

Citi recently suggested that Bitcoin could be at a “tipping point,” indicating growing acceptance and adoption of the cryptocurrency. However, the bank’s research note has faced criticism over its sourcing and the accuracy of its data.

As Bitcoin continues to gain traction among institutional investors and mainstream financial institutions, its value and significance in the global financial landscape are likely to continue increasing.

In a landmark move for the Asian financial market, Hong Kong witnesses the inaugural trading of six spot bitcoin and ether exchange-traded funds (ETFs) amidst cautious investor sentiment.

The introduction of the first spot cryptocurrency ETFs in Asia comes on the heels of a similar move in the United States, with Tuesday’s trading marking a pivotal moment for the region’s cryptocurrency investment landscape. Despite Hong Kong’s positioning as a burgeoning digital asset hub, mainland China’s cryptocurrency ban casts a shadow over the potential enthusiasm for such ventures.

Mixed Results on Debut

The six ETFs experienced a mixed reception on their debut day, with spot bitcoin ETFs launched by China AMC, Harvest, and Bosera gaining modestly between 1.5% and 1.8% at the close. In contrast, the three ether ETFs saw marginal declines. Bitcoin, the bellwether cryptocurrency, also experienced a slight dip of over 1%.

Moderate Turnover and Issuer Confidence

Total turnover for the debut day amounted to approximately $112 million, significantly lower than the impressive $4.6 billion recorded during the initial trading of U.S. spot bitcoin ETFs. However, issuers remain optimistic, citing substantial pre-listing interest from both crypto enthusiasts and traditional investors. China AMC’s bitcoin ETF led the pack with an initial size of HK$950 million ($121 million), underscoring significant investor confidence.

Regulatory Caution

While celebrating the milestone, Christina Choi, an executive director of the Securities and Futures Commission (SFC), urged caution, highlighting the speculative and volatile nature of virtual assets. Choi emphasized the unsuitability of such investments for all investors, echoing broader regulatory concerns regarding cryptocurrency trading.

Hong Kong-US Crypto Competition

The launch of Hong Kong’s ETFs positions the region in direct competition with the United States for crypto investor attention. Despite U.S. ETFs attracting approximately $12 billion in net inflows and contributing to bitcoin’s earlier price surge, regulators in the U.S. have yet to greenlight ETFs tracking spot ether prices.

Local industry players anticipate substantial growth in Hong Kong’s spot crypto ETF market, potentially reaching 20% of its U.S. counterpart within a year. Han Tongli, CEO of Harvest Global Investments, believes Hong Kong holds greater potential than the U.S., given its ability to attract investors from both the Western and Eastern markets.

Innovative Transaction Mechanisms

A key differentiator of Hong Kong’s ETFs is their adoption of the “in-kind” transaction mechanism, allowing investors to trade ETF shares using crypto tokens instead of cash. This feature may appeal to investors seeking to avoid conversion costs, potentially driving initial inflows from local retail investors.

Challenges and Opportunities

However, challenges remain, notably the higher management fees of Hong Kong’s crypto spot ETFs compared to their U.S. counterparts due to regulatory constraints. With only two approved trading platforms currently operating in Hong Kong, analysts anticipate cost concerns may initially limit institutional participation.

Despite these hurdles, bitcoin has demonstrated resilience, with a 50% increase in value this year, hitting an all-time high of $73,803 in March. Ether has also seen significant gains, rising over 30% year-to-date, suggesting continued investor interest in cryptocurrency assets.