blockchain - X-Industry - Red Sky Alliance2024-03-29T07:16:36Zhttps://redskyalliance.org/xindustry/feed/tag/blockchainUS Banks Are Breaking Up with Cryptohttps://redskyalliance.org/xindustry/us-banks-are-breaking-up-with-crypto2023-02-20T15:35:10.000Z2023-02-20T15:35:10.000ZJim McKeehttps://redskyalliance.org/members/JimMcKee<div><p><a href="{{#staticFileLink}}10970241056,RESIZE_400x{{/staticFileLink}}"><img class="align-left" src="{{#staticFileLink}}10970241056,RESIZE_400x{{/staticFileLink}}" width="250" alt="10970241056?profile=RESIZE_400x" /></a>US banks are backing away from crypto companies, concerned by a regulatory crackdown that threatens to sever digital currencies from the real-world financial system. Banking regulators are raising concerns about banks’ involvement with crypto clients following last year’s blowup of Sam Bankman-Fried’s FTX. The Securities and Exchange Commission is aggressively pursuing the industry’s bigger players in a crackdown that threatens to narrow their reach. That move has alarmed bankers who don’t want to do business with customers in the SEC’s crosshairs, people familiar with the matter said.<a href="#_ftn1">[1]</a></p>
<p>According to people familiar with the industry, bankers are now re-evaluating any exposure to the crypto sector, no matter how small. The few smaller banks that got deep into crypto are reducing their exposure to the market or cutting ties altogether. Banks that kept their distance from crypto are trying even harder to stay away, closing accounts and shunning customers with potential connections to the industry.</p>
<p>See: <a href="https://redskyalliance.org/xindustry/what-is-the-future-of-cryptocurrency">https://redskyalliance.org/xindustry/what-is-the-future-of-cryptocurrency</a></p>
<p>New York’s Metropolitan Commercial Bank recently announced closing its crypto business, citing material changes in the regulatory environment. Signature Bank cut ties with the international business of Binance, the biggest crypto exchange. One of crypto’s leading banks, the lender started paring back its relationships with crypto depositors late last year.</p>
<p>The crackdown is squeezing crypto businesses. While the industry often pitched itself as an alternative to banks, these firms still rely heavily on banks to link up with a financial system that runs on hard currencies such as dollars and euros. Without banks, crypto companies struggle to pay their employees and enable customers to move money in and out of digital currencies.</p>
<p>When bitcoin first gained popularity years ago, it was difficult for crypto firms to open bank accounts. A handful of smaller lenders, struggling to compete with big banks for deposit dollars, opened their doors, often banking only the bigger crypto players they thought were safest. These banks don’t hold digital currencies. Instead, they provide corporate accounts for crypto companies. Some, such as Silvergate Capital Corp., also built special networks to enable transfers between big investors and crypto exchanges.</p>
<p>For a time, banking regulators warmed to crypto activities. In 2020, the Office of the Comptroller of the Currency said it would allow banks to hold cryptocurrencies for customers. Regulators reversed course following the FTX meltdown. In January, the three major banking regulators warned banks that they were concerned about their crypto ties. The regulators said they had “significant safety and soundness concerns” and questioned if the industry could be safely banked.</p>
<p>See: <a href="https://redskyalliance.org/xindustry/sec-chairman-pushes-for-more-cryptocurrency-regulations">https://redskyalliance.org/xindustry/sec-chairman-pushes-for-more-cryptocurrency-regulations</a></p>
<p>“That was a red flare that basically says, ‘Banks, if you’re going to be anywhere near the crypto business, we’re going to be looking at you very carefully,’” said Thomas Vartanian, executive director of the Financial Technology and Cybersecurity Center. “At the end of the day, banks will have to ask themselves if it’s worth the aggravation.”</p>
<p>Regulators generally do not tell banks that they cannot do business with customers operating legitimate businesses. Instead, they categorize customers as higher risk through formal public statements reinforced by feedback from the examiners who burrow into their operations to ensure they are not taking undue risks. Banks often then decide these customers aren’t worth the regulatory headache and cut them off.</p>
<p>Citigroup Inc. abruptly closed Swan Bitcoin’s account in November 2022, said Cory Klippsten, chief executive of the bitcoin trading platform, forcing him to scramble to pay his 100 employees. He said that Citigroup investment bankers who had been pitching to work with him tried to intervene but were unsuccessful. Soon afterward, Mr. Klippsten said, his accounts at Citigroup were closed, too. He said he was never explained.</p>
<p>Matthew Homer, a former regulator now advising and investing in crypto firms, said his clients are having difficulty landing bank accounts. A First Republic representative told Mr. Homer the bank avoids crypto-related companies. Mercury, a banking service for startups, asks if a business is related to crypto in the sign-up process, Mr. Homer said. A spokesman for Mercury said it conducts more due diligence on these businesses because of regulatory uncertainty. A representative for First Republic declined to comment.</p>
<p>Signature is the highest-profile bank to retreat from the crypto market. In early 2022, 27% of its $109 billion deposits were from its digital-asset clients. Last year, the bank announced plans to pare back the share of deposits from the crypto business to less than 15% and to cap the number of deposits from any individual crypto customer. Regulators didn’t tell them to back away, but the bank felt they “agreed with what we were doing,” Chief Executive Joe DePaolo said. Bank officers said they don’t regret getting into crypto, even if they now spend much time reassuring their customers in other industries about their exposure. They believe the blockchain technology behind the payments network popular with crypto customers is relevant to companies such as payroll providers and cargo shippers.</p>
<p>Some banks, meanwhile, are sticking with crypto. Silvergate went all-in on crypto and does not have the same revenue sources as Signature. It lost the bulk of its crypto deposits in a run on the bank last quarter and is cutting jobs and shrinking its business to lower costs. Silvergate said it remains committed to serving crypto companies.</p>
<p>Two companies trying to win banking licenses have been left in limbo after winning preliminary approval in early 2021 from the OCC. Paxos National Trust and Protego Trust Co. applied to start banks that would hold crypto assets for clients and facilitate trading. Protego’s conditional charter expired recently. Paxos said on Twitter that it continues to “work constructively with the OCC.” </p>
<p> </p>
<p>Red Sky Alliance is a Cyber Threat Analysis and Intelligence Service organization. For questions, comments, or assistance, please get in touch with the office directly at 1-844-492-7225, or <a href="mailto:feedback@wapacklabs.com">feedback@wapacklabs.com</a> </p>
<p>Weekly Cyber Intelligence Briefings:</p>
<ul>
<li>Reporting: https://www. redskyalliance. org/ </li>
<li>Website: https://www. wapacklabs. com/ </li>
<li>LinkedIn: https://www. linkedin. com/company/64265941 </li>
</ul>
<p>Weekly Cyber Intelligence Briefings:</p>
<p>REDSHORTS - Weekly Cyber Intelligence Briefings</p>
<p><a href="https://attendee.gotowebinar.com/register/5504229295967742989">https://attendee.gotowebinar.com/register/5504229295967742989</a> </p>
<p> </p>
<p><a href="#_ftnref1">[1]</a> <a href="https://www.wsj.com/articles/banks-are-breaking-up-with-crypto-during-regulatory-crackdown-22de1832">https://www.wsj.com/articles/banks-are-breaking-up-with-crypto-during-regulatory-crackdown-22de1832</a></p></div>Auto Schott Blockchain Auto Financinghttps://redskyalliance.org/xindustry/auto-schott-blockchain-auto-financing2022-02-07T19:57:53.000Z2022-02-07T19:57:53.000ZBill Schenkelberghttps://redskyalliance.org/members/BillSchenkelberg<div><p><a href="{{#staticFileLink}}10079212455,RESIZE_1200x{{/staticFileLink}}"><img class="align-left" src="{{#staticFileLink}}10079212455,RESIZE_400x{{/staticFileLink}}" width="250" alt="10079212455?profile=RESIZE_400x" /></a>German car dealers and distributors have found a new use for blockchains: acquiring and financing their customers quickly and with less paperwork than traditional bank loans. Using Ethereum smart contracts – computer protocols that facilitate, verify or enforce the negotiation of an agreement – dealerships can provide their clients with immediate access to fiat currencies through dealer credit applications. But this family-owned dealership has embraced the blockchain by incorporating cryptocurrency into its auto finance services. The result? Shortening closing times on car loans using virtual money that’s seen a 1,400 per cent rise in value since January 2017.</p>
<p>How did Auto Dealers Start to Provide Financing with Blockchain? Auto Schott is not alone. Auto dealers looking to provide financing for their customers are exploring blockchain technology, which serves as the backbone for digital currencies like Bitcoin and Etherium, to speed up transactions that now take days or even weeks. Some even see the potential to develop smart contracts that let dealers finance their customers without the need for banks as middlemen. “We see a lot of potential for this technology to speed up transactions and bring added security,” said the general manager at Auto Schott in Mainz. “It’s an opportunity we want to explore.”</p>
<p>Schott is among about 50 exhibitors at the Auto finance & blockchain conference in Frankfurt last May. The event was cosponsored by PwC and Blockchain-Lab.de, a German research group exploring potential applications for blockchain technology. A blockchain is essentially an automatically synchronizing ledger of digital events that can be programmed to record virtually anything of value with the highest level of security.<a href="#_ftn1">[1]</a></p>
<p>When examining the idea of using blockchain for car financing, one dealer said the thought was “a bit like asking if you should use a laptop for your bookkeeping.” But dealer interest has grown as banks and start-ups have validated the concept. Learn more here at bitcoineras.com/. “Blockchain is an interesting technology, but several hurdles remain before it is standardized,” said the Auto Schott’s finance director, who is looking for ways to speed up financing transactions.</p>
<p>Fast Transactions Work for Dealer Financing. There are many benefits of using blockchain technology when it comes to auto financing for dealers, according to the head of the Automotive & Transportation Practice at PwC. “Using blockchain can provide dealers with real-time financing transactions that are secure and trustworthy,” he said. Because blockchain uses cryptography to record transactions, it can save dealers time by reducing paperwork and proving the authenticity of a transaction from start to finish. In addition, blockchain technology is more cost-efficient as banks don’t have to play as significant a role in the process. It could potentially allow dealers to finance their customers without banks. “Banks charge fees of around 1.5 per cent for car financing, so going without them would be huge cost savings,” said Kevin Hanley, a senior researcher at Blockchain-Lab.de. “From the dealers’ perspective, blockchain is a way to circumvent their role as middlemen and provide financing themselves.”</p>
<p>In theory, lower transaction costs from blockchain could also translate to lower car prices for consumers. Lower prices, of course, could stimulate the overall car market and help German automakers stay competitive in a global environment where new players like Tesla are shaking up the industry.</p>
<p>Germany is leading in Blockchain auto financing. Blockchain technology seems to be an option for car dealers, and the big question is which country will lead this? In Germany, blockchain has been incorporated into internet finance, the Internet of Things, and retailing sectors, and it appears that the automotive industry will also take advantage of blockchain technology. The main area where blockchain will be beneficial is in finance transactions, especially with cryptocurrencies on the rise and interest by car dealers, which should provide some incentives for them to look into this option. The impact of blockchain on the automotive sector is unclear, but it is certainly a trend that we’ll all have to observe if you are interested in blockchain technology.</p>
<p>Red Sky Alliance is a Cyber Threat Analysis and Intelligence Service organization who has long collected and analyzed cyber indicators. For questions, comments or assistance, please contact the office directly at 1-844-492-7225, or <a href="mailto:feedback@wapacklabs.com">feedback@wapacklabs.com</a> </p>
<p>Weekly Cyber Intelligence Briefings:</p>
<ul>
<li>Reporting: <a href="https://www.redskyalliance.org/">https://www.redskyalliance.org/</a></li>
<li>Website: <a href="https://www.wapacklabs.com/">https://www.wapacklabs.com/</a></li>
<li>LinkedIn: <a href="https://www.linkedin.com/company/64265941">https://www.linkedin.com/company/64265941</a> </li>
</ul>
<p> Weekly Cyber Intelligence Briefings:</p>
<p> REDSHORTS - Weekly Cyber Intelligence Briefings</p>
<p><a href="https://attendee.gotowebinar.com/register/3702558539639477516">https://attendee.gotowebinar.com/register/3702558539639477516</a></p>
<p><a href="#_ftnref1">[1]</a> <a href="https://roboticsandautomationnews.com/2022/02/04/blockchain-and-smart-contracts-have-german-auto-dealers-on-the-fast-track-to-financing/48987/">https://roboticsandautomationnews.com/2022/02/04/blockchain-and-smart-contracts-have-german-auto-dealers-on-the-fast-track-to-financing/48987/</a></p></div>TACTICAL CYBER REPORT: COMMUNICATION / SOCIAL MEDIAhttps://redskyalliance.org/xindustry/tactical-cyber-report-communication-social-media2021-01-22T12:50:19.000Z2021-01-22T12:50:19.000ZBill Schenkelberghttps://redskyalliance.org/members/BillSchenkelberg<div><h2><a href="{{#staticFileLink}}8466315484,RESIZE_710x{{/staticFileLink}}"><img class="align-left" src="{{#staticFileLink}}8466315484,RESIZE_400x{{/staticFileLink}}" alt="8466315484?profile=RESIZE_400x" width="250" /></a>Activity Summary - Week Ending 22 January 2021:</h2>
<ul>
<li>Keylogged: imports1@fairdealfurniture.biz - Mombasa Kenya</li>
<li>Red Sky Alliance observed 29 unique email accounts compromised with Keyloggers</li>
<li>Analysts identified 19,902 connections from new unique IP Addresses</li>
<li>1,957 new IP addresses participating in various Botnets</li>
<li>Ursnif (Gozi) banking Trojan</li>
<li>ElectroRat Crypto-Stealing</li>
<li>JetBrains</li>
<li>Social Media Alternative Parler is under Siege</li>
<li>The Word of the Moment – Purge</li>
<li>Censorship-Resistant Blockchain Social Media</li>
<li>Silicon Valley in the Hacker’s Cross Hairs</li>
<li>Jack Dorsey takes Aim</li>
</ul>
<p>Link to full report: <a href="{{#staticFileLink}}8466345875,original{{/staticFileLink}}">IR-21-022-001_SocialMedia_022_FINAL.pdf</a></p></div>Blockchain for the Supply Chainhttps://redskyalliance.org/xindustry/blockchain-for-the-supply-chain2018-12-07T19:00:26.000Z2018-12-07T19:00:26.000ZBill Schenkelberghttps://redskyalliance.org/members/BillSchenkelberg<div><p>The Air Force Institute of Technology<a href="#_ftn1" name="_ftnref1" id="_ftnref1">[1]</a> (AFIT) has releases free “Blockchain for Supply Chain” tools for supply chain professionals to learn about and use the power of block chain technology.  AFIT recently published a live blockchain application that can be accessed from any computer or smart phone, along with a complementary series of tutorial videos that presents blockchain simulation.  These videos can be used as a stand-alone classroom module, or the video and the blockchain website can be incorporated into classroom exercises or business meetings.</p>
<p><a href="https://storage.ning.com/topology/rest/1.0/file/get/267714290?profile=RESIZE_710x" target="_blank" rel="noopener"><img class="align-full" src="https://storage.ning.com/topology/rest/1.0/file/get/267714290?profile=RESIZE_710x" width="115" height="115" /></a>Blockchain has become very important in many supply chain management circles.  Wapack Labs has exposed numerous past examples of how cyber-attacks have targeted vulnerable supply chain companies targeting many critical infrastructure sector businesses.  Cyber experts have predicted that blockchain will revolutionize the way we think about designing and operating the digital infrastructure for future supply chains.  By providing a secure record of transactions between multiple parties, a blockchain can improve transparency and increase trust across all of the tiers in a supply chain.  This is crucial to safe and secure cyber operations. </p>
<p>Blockchain provides higher visibility into their extremely complex logistics network, such as military logistics.  Current information systems often struggle to track vital parts and components that are sourced from one region, and then assembled into equipment that is deployed internationally.  A blockchain digital ledger could be a sophisticated solution to this extremely complex supply chain challenge.  For many, it is difficult to understand what makes a blockchain different from a traditional database.  While the potential opportunities of using blockchain is enormous; real life introduction of any new technology (like blockchain) into an international organization takes patience, understanding, solid strategy, and approval of C-suite level decision-makers.<a href="#_ftn2" name="_ftnref2" id="_ftnref2">[2]</a></p>
<p>AFIT, working together with SecureMarking, a private supply chain security firm, and the University of South Dakota Beacom School of Business, AFIT developed a multi-echelon supply chain scenario and creating a blockchain application around it.  In their scenario, an Air Force program manager issues digital “tokens” to upstream suppliers.  These tokens are then assigned to components.  The tokens are transferred from one company to the next in the blockchain, at the same time as the physical products move through the supply chain.  Some of the companies in this scenario are able to add additional information to a token.  For example, when a component is assembled into a product, this can be recorded to the blockchain.  Companies at any tier can see the end-to-end supply chain for all of the parts they have handled.  But only the original program manager has complete visibility to all of the parts from all of the companies, and at any time.</p>
<p>It is possible to track this information in current and traditional database, but using a blockchain helps to ensure that all of the policies are enforced at each step in the process and every transaction is permanently recorded.  Given the distributed nature of the blockchain, each participant has their own absolute copy of the record.  This distributed way of accounting and coordination is a revolutionary advance in how goods/products/parts are tracked across organizations.  Blockchain technology provides all supply chain participants with a higher level of confidence in their digital records and in their physical product distribution.</p>
<p>In the process of developing this scenario, the Air Force team confronted basic decisions that any company will need to address when designing their blockchain.</p>
<ul>
<li>Will the blockchain be public, allowing anyone to join, or will it be private, meaning only pre-approved companies can participate in transactions?</li>
<li>What activities will each company in the blockchain be allowed to perform?</li>
<li>Will participation be compulsory or will there need to be an incentive structure?</li>
<li>How much visibility will each company have into the overall supply chain?</li>
</ul>
<p>An important point of this technology is that it tracks the entire lifecycle of a component from its point of manufacture to its eventual decommissioning and disposal.  This is important because many supply chains now face a challenge of having used products re-introduced and sold as new by dishonest businesses. These used products can lead to dangerous and costly complications and harm the reputation of the original manufacturer.  In some situations, tracking disposed parts can be useful for ensuring that hazardous materials are properly disposed of, or that that they are recycled.  Blockchain technology has been reviewed numerous times by Wapack Labs and analysis revealed its valued uses.  Employing blockchain within industrial supply chains will provided numerous advantages in security, accounting, and product longevity.  Now our friends at the US Air Force are offering this technology  training for free.</p>
<p>Full demonstration of “Blockchain for the Supply Chain” is available as a series of YouTube videos.<a href="#_ftn3" name="_ftnref3" id="_ftnref3">[3]</a>   Publications can be viewed at:</p>
<p><a href="http://blockchain.securemarking.com/guide.html">http://blockchain.securemarking.com/guide.html</a> </p>
<p>For questions or comments regarding this report, please contact the Lab directly by at 844-4-WAPACK (1-844-492-7225), or <a href="mailto:feedback@wapacklabs.com">feedback@wapacklabs.com</a></p>
<p><a href="#_ftnref1" name="_ftn1" id="_ftn1">[1]</a> <a href="https://www.afit.edu/">https://www.afit.edu/</a></p>
<p><a href="#_ftnref2" name="_ftn2" id="_ftn2">[2]</a> <a href="https://www.mmh.com/article/air_force_institute_of_technology_releases_free_blockchain_for_supply_chain">https://www.mmh.com/article/air_force_institute_of_technology_releases_free_blockchain_for_supply_chain</a></p>
<p><a href="#_ftnref3" name="_ftn3" id="_ftn3">[3]</a> <a href="https://www.mmh.com/article/air_force_institute_of_technology_releases_free_blockchain_for_supply_chain">https://www.mmh.com/article/air_force_institute_of_technology_releases_free_blockchain_for_supply_chain</a></p>
</div>