Just when Cardano, the decentralized blockchain platform, was seeing its native token ADA rising by 4.3% in the last 24 hours, a new controversy has emerged. Claiming that founder Charles Hoskinson moved 318 million worth of around $619 million without permission.
Despite the drama, ADA remains on track for a potential breakout, with indicators pointing to a price surge towards $1.
318M ADA Scandal? Hoskinson Responds
Cardano founder Charles Hoskinson has been in the limelight more for the last few weeks, starting from claiming that Ethereum might not survive the next 10-15 years, to defending Cardano against critics
But this time, Hoskinson is facing serious accusations of making unlawful move of ADA tokens. Crypto influencer Masato Alexander claims Hoskinson used special access to move 318 million unclaimed ADA, worth about $619 million, without permission.
Masato says the tokens were linked to a company called Attain Corp and were sold to investors in Japan, some of whom later felt tricked.
Hoskinson quickly denied all the claims, he said 99.8% of the tokens were claimed legally, and the rest were moved after a 7-year time limit, following the rules.
You keep lying to people. The Ada vouchers became unspendable after the hard fork. They were rolled into a custodial account controlled by the TGE that then continued redemption for 3 more years to distribute the genesis funds to the original buyers.
Many in the Cardano community have come to his defense, saying everything was done transparently and followed network rules.
Cardano Gears Up for Breakout – $1
Looking at the 1-day chart of Cardano, the price has been consolidating between the range of $0.66 to $0.72 for the last two weeks. Today, ADA jumped nearly 4.5% to around $0.707, breaking out of its recent downtrend.
If you take a closer look at the charts, it’s clear that ADA bounced back from a low of $0.60 and is now moving through key Fibonacci levels. In particular, ADA has broken through the 0.618 Fibonacci level at $0.6984 and is currently testing the 0.786 level at $0.7086, a bullish signal that suggests strength is building.
If ADA can close above $0.7214, it may confirm a breakout and open the door to a rally toward $0.75, $0.80, or even $1.
However, if ADA fails to break this key resistance, it could dip back to support near $0.6684 or $0.616.
Bitcoin was once considered the dominant currency in illicit transactions. However, it is now being replaced by privacy-focused cryptocurrencies like Monero (XMR), Zcash (ZEC), Dash, and stablecoins.
The primary reason for Bitcoin’s decline in illegal activities is its transparency.
Reasons for the Shift from Bitcoin to Privacy Coins
Bitcoin (BTC) once dominated illicit activities on the Dark Web, such as Nucleus Marketplace or Brian’s Club. The report from TRM Labs indicated that Bitcoin accounted for 97% of the total cryptocurrency volume associated with illegal activities in 2016.
However, by 2022, this figure had dropped sharply to just 19%, indicating a significant shift toward other cryptocurrencies.
According to the TRM Labs’ report, illegal cryptocurrency activities involving Bitcoin will drop to just 12% by 2024. Tron (TRX) holds the top position with 58%. In another report from Chainalysis, stablecoins now account for the majority of total illicit transaction volume at 63%. The use of Bitcoin in illegal activities also recorded a significant decline.
Stablecoins gained 63% of illicit trading activity by 2024. Source: Chainalysis
White House Market, one of the largest Dark Web marketplaces, stopped accepting Bitcoin and exclusively used Monero (XMR) for transactions in 2020.
“The Bitcoin workaround was supposed to be there just to help with transition to XMR and as we are concerned, it’s done, therefore we are now Monero only, just as planned,” stated White House Market.
The decision was driven by Bitcoin’s limitations, particularly its blockchain transparency. This move reflected a strategic shift in Dark Web markets and highlighted the rise of privacy coins like Monero, which are designed to provide enhanced anonymity.
The Popularity of Privacy Coins on the Dark Web
The decline of Bitcoin in illegal activities is not coincidental but rather stems from its inherent limitations. First and foremost, Bitcoin’s blockchain is a public ledger. When combined with additional data such as IP addresses or exchange records, every transaction can be tracked.
This transparency has enabled law enforcement agencies like the FBI to use blockchain analytics tools from Chainalysis and Elliptic to dismantle major Dark Web markets. Examples include the Silk Road shutdown in 2013, AlphaBay in 2017, Hydra in 2022, and Incognito Market in 2024.
Additionally, Bitcoin faces technical challenges, including high transaction fees and slow confirmation times. In contrast, privacy coins like Monero, Zcash, and Dash leverage advanced technologies to ensure high levels of anonymity, making transaction tracking extremely difficult. The Research from ScienceDirect suggests that privacy coins are closely linked to Dark Web traffic, further increasing their popularity in illicit markets.
The Two Sides of the Shift to Privacy Coins
On the positive side, Bitcoin’s declining role in illegal activities may improve its reputation as a legitimate financial tool. This could lead to wider acceptance and attract more users and investors.
However, the shift from Bitcoin to privacy coins and stablecoins has made it more challenging for law enforcement agencies to track and prevent illegal transactions. Despite advanced blockchain analytics tools that can detect transaction trails through mixers and tumblers, dealing with Monero and other privacy coins remains a significant challenge.
Global regulators are increasingly scrutinizing privacy coins and stablecoins. Some countries have outright banned privacy coins, while stablecoins are subjected to stricter oversight.
The transition from Bitcoin to privacy coins and stablecoins on the Dark Web is a clear trend, driven by the growing demand for anonymity and efficiency in illicit transactions. While Bitcoin still plays a role in certain crypto-related crimes, its transparency makes it less attractive to the Dark Web.
Meanwhile, Monero, Zcash, Dash, and stablecoins have become the preferred choices due to their enhanced security and privacy. This trend poses significant challenges for law enforcement agencies while driving advancements in blockchain analytics tools.
However, it also raises concerns about using cryptocurrencies in illegal activities, necessitating a balance between technological innovation and regulatory oversight to ensure transparency and security in the digital financial ecosystem.
ZachXBT’s investigation claims that the mysterious 50X Hyperliquid whale is actually a British cyber criminal named William Parker (formerly known as Alistair Packover). Parker has a long history of fraud, hacking, and casino theft.
This trader made headlines by profiting roughly $20 million from a series of highly leveraged trades
Who is William Parker, AKA the 50X Hyperliquid Whale?
William Parker is a British cyber criminal with a long track record in hacking and fraud.
“I tracked down a recent payment from 0xe4d3 to an unnamed person who confirmed they had been paid by the Hyperliquid trader. They provided a UK phone number used to communicate with them. Public record reveals the name William Parker is likely tied to this number,” wrote ZachXBT.
He was arrested in 2023 for allegedly stealing around $1 million from two casinos. Even after serving time, Parker continued his illicit activities.
William Parker, AKA Alistair Packover. Source: BBC
So, how did he actually make $20 million in a very short time? The answer is ‘using leverage’.
Understanding 50x Hyperliquid Trades
In crypto, leverage means borrowing funds to increase the size of your trading position. In this case, the whale used up to 50× leverage. This means that even a small favorable move in an asset’s price could multiply his profits many times over.
For example, if he had a 50× leveraged position and the price moved 2% in his favor, that 2% swing could translate into about a 100% gain on his original investment.
“A whale who opened a $450 million short position on btc with 40x leverage closed all their trades, making a $9.46M profit in 8 days. Although this person is referred to as a “Hyperliquid whale,” they are actually a criminal, gambling with stolen funds,” wrote Web3 attorney Langerius.
The trader, William Parker, as revealed by ZachXBT, opened very large positions in cryptocurrencies like Bitcoin and Ether during volatile market moments.
He timed his trades when the market was moving rapidly earlier this month due to the whole White House Crypto Summit and Bitcoin reserve saga.
The volatile market sentiment allowed him to move around big events or sudden price changes.
“When a whale shorts over $450 million in BTC and wants a public audience, it’s only possible on Hyperliquid. Anyone can photoshop a PNL screenshot. No one can question a Hyperliquid position, just like no one can question a Bitcoin balance. The decentralized future is here,” Hyperliquid wrote on X (formerly Twitter).
How Did Parker’s Leveraged Trades Affect the Market?
In some cases, his massive trades also forced other traders into liquidation. When a trader’s position is liquidated, the system sells its assets at a loss to cover the borrowed funds.
This boosted the whale’s gains and also disrupted the market. Although using 50× leverage is extremely risky, Parker managed his trades carefully.
His strategy was successful enough that he reportedly made around $20 million from these high-stakes moves.
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