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Hacked Ukraine Military Documents Spell Out Disastrous Situations

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The hacker group known as Cyber Berkut gained access to a computer belonging to a chief military prosecutor on January 28, grabbing documents that show that Ukraine is not in good shape.

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Author’s Note: The leaked documents have not been verified as official documents. The article is marked as a rumor for this reason.

The documents spell disastrous situations for the Ukrainian army in their fight for freedom, even though the government seems to be spinning the story the opposite way. Among cries of positive gains, the documents show that troops are demoralized, with recruits fleeing to Russia.

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What’s worse, the numbers of death are staggering compared to the official reports from the Ukranian government. On Jan. 25, Lieutenant General Sergei Popko restricted transmissions of information recording losses in battles. As the documents show, the recent battles in Donbass were severely underreported in losses by tens to hundreds of times more.

Documents Show Ukraine Soldiers Fleeing Battle

UkraineWhen publishing the documents, Cyber Berkut gave the following statement. Originally written in Ukrainian, Hacked translated the words into English as best as possible:

“The troops are demoralized and surrendering, no reserves, mobilization slips, recruits fleeing to Russia and the West. In a panic command ATO publishes insane orders, forms in the rear detachments, throws into senseless attack on a well-prepared defense militias inexperienced young men.”

According to the documents, drafted soldiers are either fleeing from battle or surrounding immediately to the Russian opposition.

In addition, one of the letters outlines that more than 12,600 crimes have been recorded for the illegal handling of weapons, ammunition and explosives. The cause? The Ukraine military is failing to keep a correct account of their weapons.

The misappropriation of facts is a military practice that’s not knew – the United States also underreported many deaths in the Vietnam War. But the flooding of unaccounted weapons to the people of Ukraine is highly dangerous and may result in more uprisings across the board.

All of the files can be found on Cyber Berkut’s official website.

Photograph from Wikimedia Commons and image from Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Clay Gillespie a writer and reporter for many different platforms across the tech industry. He holds a B.S. in Public Relations from Ball State University, and freelances for different clients in technology and cryptocurrency. For more information, visit his personal website, claygillespie.com.




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17 Comments

17 Comments

  1. Infinite Wealth

    February 7, 2015 at 2:58 pm

    Why is there even any conflict. Do people think they are fighting over money? Doesn’t everyone realise actually that everyone is fighting to own more debt. Everything we see around is is debt, and everything belongs to the universe. We really need to change the way humans perceive each other and just exactly that money is a fabricated item that is selling debt to you, there are ways in which to change this. Very disappointed at the need to militarise arguments, if the legal system was fair there wouldnt be this sort of problem.

    This is EXACTLY why moving all money to the blockchain, and having unobtrusive transaction and movement tracking are essential, once data is on the blockchain it CANNOT be modified so it is time-stamped evidence, that is why Bitcoin and the Blockchain are so important for human safety and future peace.

    We MUST ensure that the Blockchain is utilised in as much politics, finance and law as much as possible in the future to protect ourselves from laws and government (smiling terrorists?).

    • Artur Denysenko

      February 7, 2015 at 3:07 pm

      To get to roots of conflict refer to Putin with his “Great Russia”, Miloshevich with his “Great Serbia” and Hitler with his “Great Germany” 😉

    • Notforgotten

      February 12, 2015 at 1:57 am

      Are you a complete idiot? How can you possibly get to the conclusion that the solution is to move off of the “cotton standard” and onto the blockchain? This conflict has very little to do with money nor monetary gain. This conflict is about sovereignty, self rule, and global power positioning.

  2. Artur Denysenko

    February 7, 2015 at 3:05 pm

    Cyber Berkut is a Russian “hacker group” propaganda group. It’s as truthful as RussiaToday 😉

    • CryptoReporter

      February 7, 2015 at 3:11 pm

      Or as truthful as Poroshenko.

    • Jo

      February 7, 2015 at 3:13 pm

      Thanks for letting us know and helping us put this article into perspective.

      • CryptoReporter

        February 7, 2015 at 3:42 pm

        Documents, smockuments. If you want the real truth I will tell you the truth. I have spent a lot of time in the region and one thing is VERY clear is that western Ukrainians (latin rite christians/polish) HATE WITH PASSION eastern Ukrainians (orthodox christians/russian). Whenever I went to government offices for documents, If we did not speak Ukrainian (official language) and instead spoke Russian influenced Ukrainian we were immediately treated differently. Here in America when looking for a church for my family we ended up a Ukrainian Catholic church and they welcomed us with open arms into their small community until we were spat on and yelled at after the service once they understood we were from eastern Ukraine. So much for Christianity?!

        While in general, most Ukrainians are warm hearted people, Ive NEVER experienced such crap treatment in Russia or from Russians anywhere.

        I now have one dead relative thanks to this war and one missing. My uncle is missing for a week now and my cousins wife (21 yrs old) was shot in the head a month after having their first baby. The rest of my family has fled to Moscow. I have one cousin and his newborn stuck with bombs and artillery all day long because he cannot obtain documentation for his newborn. Will they survive?

        This war began when western funded people formed a coup and toppled the democratically elected president of Ukraine. Agreed, he wasnt a good president, but he was elected into office. The Yatsenyuk government took over which was funded in part by Poroshenko’s money (he was a major monetary contributor of the revolution) and the West. After the dust settled an “election” took place last May and many eastern Ukrainians were blocked from voting just exactly what happened to them during the Orange revolution a few years back. It was a sham election that western nations said was honest. The winner? Poroshenko, the oligarch who helped fund the revolution in the first place.

        • solid12345

          February 7, 2015 at 4:47 pm

          Heh I’m American but took a few hours of Russian in college, I was invited to a party full of Russians once and witness to a Ukrainian man debating with 3 other Russians and it about turned into a fist fight. I think it’s like Israel & Palestine, you just need to make a clear line in the sand and say, “ok, this is your side and this is my side” and leave it at that.

          • CryptoReporter

            February 7, 2015 at 7:07 pm

            Its probably for the best that the two sides just realize the differences and divorce from each other. Whats stupid to me is they are all Slavic.

          • silverdr

            February 10, 2015 at 5:51 pm

            That’s how it was for some good years.

        • Artur Denysenko

          February 9, 2015 at 8:17 am

          It’s and old ferry-tell about the Evil West toppled a “good tzar”, russophobes killing Russians, and Good Russia that has nothing to do with death.

          This ferry-tell is told for the every war Russia gets into: http://en.wikipedia.org/wiki/List_of_wars_involving_Russia#Russian_Federation_.281991.E2.80.93present.29

          I would recommend this reading: http://skibinsky.com/no-russian

  3. Ghosty

    February 7, 2015 at 3:52 pm

    As a species we need to let go of hate… It has been said that hate is like holding onto a burning hot stone with the intent to throw it at another… You are the one who gets burned…

    We are all connected… Unity consciousness is the only way out of this mess we have created!

    • Flash Reiker

      February 7, 2015 at 4:50 pm

      @Ghosty, thanks Mom. I’m sure Mankind will get right on that.

      • Ghosty

        February 7, 2015 at 5:48 pm

        No… Mankind is insane so I’m sure it won’t at least not in the short term… But some can see the forest through the trees…

  4. Doom Sternz

    February 8, 2015 at 3:05 am

    No surprise here. Ukraine has been as still is the most corrupt country in the world. The US is probably the second most corrupt country in the world.

    In an interview with CNN’s Fareed Zakaria, Barack Obama acknowledged that the United States had “brokered a deal to transition power in Ukraine,” thus admitting to the highest level of democratic impropriety imaginable.

    The Ukrainian Government’s problem in implementing Obama’s planned genocide of the Donbass, is that there just aren’t enough Nazis, and there’s also not enough money, to do the amount of killing that needs to be done in order to enable Obama’s Ukrainian regime to retain the land in Donbass while eliminating the people there.

    Washington and Kiev partner in each other’s crimes against humanity. One fascist regime supports another. And the real reason why Obama’s war in Ukraine is failing is that there just is not enough blood-lust for the task, either in Ukraine, or in “the West.”. Obama has over-reached, when he overthrew Ukraine’s democratically elected President.

  5. Nmeofthestate

    February 16, 2015 at 3:18 pm

    “Ukrainian army in their fight for freedom”. Yeah, right. Get a clue. Nobody but the USG and the hardcore NAZIS (or do I repeat myself) that the USG installed in a well documented coup, want this to be a shooting war. That’s why something like 7% of those drafted showed up, and the rest have gone into hiding or fled.

    https://www.youtube.com/watch?feature=player_embedded&v=PQjmwVC_Dts

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Breaches

Coincheck Hackers Launder 40% of Stolen NEM Funds, Experts Say

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The hackers behind Coincheck’s massive NEM heist have successfully offloaded 40% of the stolen funds, according to new research by Tokyo-based consultancy group L Plus. The successful money laundering campaign highlights the ongoing challenges authorities face in bringing cyber criminals to justice.

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Hackers Launder NEM

Analysts at L Plus believe that roughly 200 million NEM tokens, worth $79 million, have already been laundered through the dark web. However, the hackers likely pocketed a much smaller amount amid ongoing efforts to blacklist the tokens.

Nikkei Asian Review reported Monday that Coincheck was targeted with “suspicious traffic” for weeks leading up to the Jan. 26 heist. Citing a person close to the investigation, Nikkei said the attackers hacked an employee email and stole a private key needed to transfer the NEM tokens to the desired accounts. L Plus indicated that the attacker must have repeatedly accessed the Coincheck server to obtain the private key.

When the hack took place, the stolen NEM tokens were worth more than $400 million. Today, they are worth less than half that amount. The identity of the attackers remains unknown to this day. However, authorities have speculated that North Korea may have been responsible for the attack.

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Coincheck plans to resume operations this week following a government-mandated freeze on all trading activity.

Japan Boosts Oversight

The attack has prompted Japan’s financial regulators to step up their oversight efforts of the cryptocurrency market. Last week, regulators penalized seven exchanges after deeming their internal controls insufficient to deal with a cyber attack.

Japan’s Financial Services Agency (FSA) slapped two exchanges – FSHO and Bit Station – with month-long suspensions. The remaining five exchanges – Bicrements, Coincheck, GMO Coin, Mr. Exchange and Tech Bureau – were given business improvement orders.

The FSA began conducting on-site inspections in late January following the Coincheck attack. Regulators have uncovered several issues, including a lack of customer protection measures and insufficient anti-money laundering controls.

Japan remains one of the most welcoming jurisdictions for cryptocurrency trading, but repeated attacks may prompt regulators to reconsider their relatively lax approach. Digital currency exchanges in Japan and elsewhere face a growing threat from cyber criminals looking to capitalize on the rising value of digital assets.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 415 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Skepticism Grows Over BitGrail’s Supposed $167 Million Hack

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A relatively unknown cryptocurrency exchange by the name of BitGrail has informed its users of a coordinated cyber attack targeting Nano (XRB) tokens. However, the incident does not appear to be holding up to scrutiny after the founder of the exchange made an odd request to the developers of Nano shortly after discovering the alleged theft.

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BitGrail Exchange Allegedly Compromised

The Italian exchange issued a notice to its clients last week informing them that 17 million XRB tokens were compromised in a cyber attack. The XRB token, formerly known known as Raiblocks, is valued at $9.80 at the time of writing for a total market cap of $1.3 billion. That puts the total monetary loss of the supposed heist at nearly $167 million.

Parts of the notice have been translated into English from the original Italian by Tech Crunch, a media company dedicated to startups and technology news. According to the agency,  BitGrail has stated the following:

“… Internal checks revealed unauthorized transactions which led to a 17 million Nano shortfall, an amount forming part of the wallet managed by BitGrail… Today a charge about those fraudulent activities has been submitted to the competent authorities and now is under police investigation.”

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The notice indicated that all transactions have been put on hold until authorities complete their investigation.

Very little is known about BitGrail, as it is not listed among the 183 exchanges whose volume is ranked by CoinMarketCap.

Suspicion Grows

Unlike other crypto heists, the circumstances surrounding the alleged BitGrail attack have been met with widespread suspicion. As David Z. Morris of Fortune rightly notes, this isn’t the first time BitGrail has suspended Nano withdrawals. The same thing happened in early January when the exchange halted not only Nano, but Lisk and CryptoForecast transactions as well.

The suspension was followed by an announcement that the exchange was taking measured steps to verify users and enforce anti-money laundering requirements. It was around this time that users became suspicious that BitGrail was going to cut and run with their tokens.

BitGrail founder Francesco Firano made an unusual request to the developers of Nano following the alleged attack: he asked them to fork their record, a move that would essentially restore the stolen funds.

Nano officially rejected the request on Friday, the day after Firano supposedly discovered the stolen coins. In a post that appeared on the Nano Medium page, the team said:

“We now have sufficient reason to believe that Firano has been misleading the Nano Core Team and the community regarding the solvency of the BitGrail exchange for a significant period of time.”

Last month, hackers made off with more than $400 million worth of NEM tokens stolen from Coincheck, a Japan-based cryptocurrency exchange. The coins have yet to be recovered and the perpetrators remain at large. In 2014, a cyber heist brought down Mt Gox, which was the world’s largest exchange.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 415 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Breaches

Coincheck Hackers Are Trying to Sell Their Stolen NEM Coins

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hacker extortion bitcoin

The hackers behind the biggest crypto heist of all time are attempting to sell their stolen coins, according to an executive at the NEM Foundation. The revelations are the latest in a four-day saga that has authorities still struggling to identify perpetrators or locate the account in receipt of the stolen funds.

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Hackers Try to Profit

Jeff McDonald, Vice President of the NEM Foundation, said Tuesday that his organization had traced stolen XEM coins to an unidentified address. It was here that the thief tried to unload the stolen funds onto six online exchanges for the purpose of selling them. McDonald said the exchanges have since been notified.

It was not immediately apparent how many of the stolen coins were spent or even the whereabouts of the account. A spokeswoman at the NEM Foundation later said the attacker sent the cryptocurrency to several random accounts in 100-token increments.

Last Friday, the attackers made off with more than $400 million worth of NEM tokens from Japanese cryptocurrency exchange Coincheck. The monetary value of the heist has fluctuated several times over the past four days, reflecting regular price moves in NEM’s native XEM token. However, Coincheck said it would reimburse account holders at a rate of 81 U.S. cents per token, which reflects the average price between Jan. 26 and 27.

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Coincheck has been fined administrative penalties for failing to secure client funds. It was later revealed by the executive management team that the exchange failed to implement basic security features, such as multi-signature capability and cold storage. Rather, the XEM tokens were held in accounts connected to the internet.

Although the NEM Foundation is trying to prevent the liquidation of stolen funds, MacDonald said the attackers will likely get away with some of the money. However, the likelihood that they spend all of it is virtually zero given the market’s underlying liquidity constraints.

NEM Price Volatility

News of the heist on Friday triggered significant volatility in the price of XEM and the broader cryptocurrency market. Following a brief recovery, XEM has declined steadily over the past three days, with prices reaching new six-week lows on Tuesday. The coin touched a session low of 79 cents on volumes of more than $32 million. At press time, the coin was worth a little more than 80 cents.

Even with the decline, NEM held on to tenth spot in the global cryptocurrency rankings based on market cap. The coin’s overall value remains well north of $7 billion, according to CCN.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 415 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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