Around 70% to 80% of transactions in the crypto secondary market transactions occur between crypto assets and stablecoins. The South Korean government’s welcoming stance, coupled with the high popularity of crypto assets in the country, are among the reasons why the won is now the second most-used fiat currency. Decline in 2021/2 Crypto-to-Stablecoin Volumes According […]
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People with obesity-related heart failure and diabetes can get substantial heart-health benefits from weight-loss drug Wegovy, even if they don’t shed many pounds on the medication, according to new research.
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In the first quarter of 2024, more than $336 million in digital assets were stolen from decentralized finance platforms across 61 incidents of hacking and fraud. During this period, criminals made off with digital assets valued at $144.48 million in two major hacking incidents. In contrast, centralized finance platforms reported no incidents of hacking or […]
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Families with a net worth of up to $100 million exhibit a strong preference for algorithmic cryptocurrencies over tokens (4.32% versus 0.92%), a new study has found. The study cites statistics indicating that ownership continuity is disrupted in 91% of cases involving a transition from crypto to fiat and vice versa. Traceability of Ownership Continuity […]
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(Bloomberg) — Pig-butchering scammers have likely stolen more than $75 billion from victims around the world, far more than previously estimated, according to a new study.
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John Griffin, a finance professor at the University of Texas at Austin, and graduate student Kevin Mei gathered crypto addresses from more than 4,000 victims of the fraud, which has exploded in popularity since the pandemic. With blockchain tracing tools, they tracked the flow of funds from victims to scammers, who are largely based in Southeast Asia.
Over four years, from January 2020 to February 2024, the criminal networks moved more than $75 billion to crypto exchanges, said Griffin, who has written about fraud in financial markets. Some of the total could represent proceeds from other criminal activities, he said.
“These are large criminal organized networks, and they’re operating largely unscathed,” Griffin said in an interview.
Pig butchering — a scam named after the practice of farmers fattening hogs before slaughter — often starts with what appears to be a wrong-number text message. People who respond are lured into crypto investments. But the investments are fake, and once victims send enough funds, the scammers disappear. As far-fetched as it sounds, victims routinely lose hundreds of thousands or even millions of dollars. One Kansas banker was charged this month with embezzling $47.1 million from his bank as part of a pig-butchering scam.
The people sending the messages are often themselves victims of human trafficking from across Southeast Asia. They’re lured to compounds in countries including Cambodia and Myanmar with offers of high-paying jobs, then trapped, forced to scam, and sometimes beaten and tortured. The United Nations has estimated more than 200,000 people are being held in scam compounds.
The study, “How Do Crypto Flows Finance Slavery? The Economics of Pig Butchering,” was released on Thursday. Griffin and Mei found that $15 billion had come from five exchanges, including Coinbase, typically used by victims in Western countries. The study said that once the scammers collected funds, they most often converted them into Tether, a popular stablecoin. Of the addresses touched by the criminals, 84% of the transaction volume was in Tether.
“In the old days, it would be extremely difficult to move that much cash through the financial system,” Griffin said. “You’d have to go through banks and follow ‘know-your-customer’ procedures. Or you’d have to put cash in bags.”
Paolo Ardoino, the chief executive officer of Tether, called the report false and misleading. “With Tether, every action is online, every action is traceable, every asset can be seized and every criminal can be caught,” Ardoino said in a statement. “We work with law enforcement to do exactly that.”
Tether has cooperated with authorities in some cases to freeze accounts tied to fraud. But often by the time the crime is reported, the scammers have already cashed out.
“Our paper shows they’re the currency of choice for criminal networks,” Griffin said.
Chainalysis Inc., a blockchain analysis firm, also said the study’s totals might be inflated. Just because a blockchain address receives some money from a pig-butchering scam doesn’t mean all the money received by that address comes from fraud. “Quantifying funds earned through pig-butchering scams is challenging given limited reporting,” said Maddie Kennedy, a spokesperson for Chainalysis. Tether is a one of the company’s customers.
Many of the fraud victims’ blockchain addresses were collected by Chainbrium, a Norwegian crypto investigations firm. Chainbrium also conducted its own analysis of the data and found that a large proportion of the funds flowed through a purportedly decentralized crypto exchange called Tokenlon. Scammers use the exchange to obscure the source of the funds, according to Chainbrium. Tokenlon didn’t respond to a request for comment.
“People in the US, their money is going straight to Southeast Asia, into this underground economy,” said Jan Santiago, a consultant to Chainbrium.
Eventually, the criminals would send the scam proceeds to centralized crypto exchanges to cash out for traditional money. Griffin said Binance was the most popular exchange, even after the company and its founder, Changpeng Zhao, pleaded guilty in November to criminal anti-money-laundering and sanctions charges and agreed to pay $4.3 billion to resolve a long-running investigation by prosecutors and regulators.
“Binance is the place where they can move large amounts of money out of the system,” Griffin said.
Like Tether, Binance has worked with law enforcement in some cases to freeze accounts tied to fraud and return money to victims. A spokesman for the company said it recently worked with authorities to seize $112 million in a pig-butchering case.
“Binance continues to work closely with law enforcement and regulators to raise more awareness of scams, including pig butchering cases,” the spokesman, Simon Matthews, said.
(Adds comments from Chainalysis in the 12th paragraph.)
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Fraught with worry over high housing costs, impending student loan payments, and compounding credit card debt, millennials face financial challenges unlike other generations. Yet they’re still the generation that’s most money obsessed—and the one that wants to show it off.
While more than half of affluent millennials say they’ve been “greatly affected” by the cost-of-living crisis, 59% feel it is important to “look or appear” financially successful to others, according to a recent Wells Fargo study. This is yet another sign of “money dysmorphia” (as Intuit Credit Karma dubs it), in which people obsess over the idea of being rich so much so, that they lose sight of the actual state of their finances.
What’s even more telling is that Wells Fargo’s study actually focuses on “affluent” millennials who make at least $250,000 a year, which means it’s not just lower-income young people who feel the need to keep up with the Joneses, so to speak. More than 40% of the approximately 1,000 respondents said it’s important to have visible signs of wealth, whether it be purchasing a fancy car, clothing, or place to live. By comparison, just 21% of Gen Xers, 8% of baby boomers, and 7% of the silent generation feel the same.
“Affluent millennials are, in fact, working hard and gaining financial success,” Emily Irwin, managing director of advice and planning for Wells Fargo, tells Fortune. “Yet they’re grappling with this external image, and as a result, there’s a growing trend to present themselves with an image that isn’t reflective [of] their actual financial situation. For some, it could be even be a ‘fake it until you make it’ mentality.”
Even some of the wealthiest millennials face money dysmorphia, and more than 40% of them have to rely on credit cards or loans to fund their lifestyle—all while accumulating debt, the Wells Fargo survey shows. The national average debt among credit card holders during the fourth quarter of 2023 was $6,864, according to LendingTree. And millennials are among the consumers struggling most with unpaid balances.
“Millennials have seen the largest increase in their delinquency rates and now have rates definitely above pre-pandemic levels,” New York Federal Reserve researchers said in a November 2023 press call. “Given the strong labor market and general economy, these increases are somewhat surprising.”
But it’s not so surprising how much millennials spend when we look at how easily and how often they’re influenced by social media—whether in the form of advertisements or subtle (or not so subtle) nudges from influencers.
“We live in a hyper-sexualized, distracted, visually curated society now all narrowly tailored into the confines of the infinite scroll,” Christopher M. Naghibi, executive vice president and chief operating officer at First Foundation Bank, tells Fortune. “Endless pictures and videos … are put in the face of the viewer, and it is simply human nature to want to be as beautiful, well-traveled, and more than anything else—rich.”
And the data shows that affluent millennials are no different. Nearly 30% said that they buy things they can’t afford in order to impress others or “fit in” with a certain lifestyle, the Wells Fargo survey found—and another third reported lying or exaggerating about their finances to keep up appearances.
“For millennials, being the first generation on the internet means that ‘keeping up with the Joneses’ isn’t just having the best of something on your block or in your neighborhood, it’s feeling pressure to match the level of consumption of a much wider net of online influencers,” Jonathan Ernest, an associate professor of economics at Case Western Reserve University, tells Fortune. “This also means that millennials may perceive more benefit from owning luxury items, as they earn the admiration of not only their peers, but also their friends, family, and followers from a larger online presence.”
But Irwin warns this “charade” isn’t sustainable.
“It’s a vicious cycle because most people are reluctant to talk about their actual circumstances, and instead it’s the image of ‘I’m living my best life,’” Irwin says. “Now, it would be great if the trend would segue into: Share what you’ve done to be so financially responsible. How freeing it would be if everyone ‘put their cards on the table,’ and not receive judgment or embarrassment.”
Despite being a highly educated generation with staggering student loan debt, millennials look past these longer-term costs and instead choose to live in the moment, experts agree.
“Coupled with the fact that millennials as a whole may find more value in indulgences after putting in the work to become the most educated generation in American history, it’s understandable how a small splurge on a luxury item can seem an insignificant cost in the face of seemingly insurmountable student loan and housing costs,” Ernest says.
But in some cases, making expensive purchases like buying a home despite high mortgage rates could make sense for millennials because savings account yield rates have been relatively lower.
Millennials “may have rationalized that it may have made sense to stretch for a dream home versus allocating dollars to a savings account that wasn’t yielding a high interest rate,” Irwin says. “And it may make sense—assuming they’re setting aside funds for emergencies and not incurring revolving debt, like credit card debt.”
In terms of tips for fighting money dysmorphia, experts agree that thinking long-term about purchases can make a difference. Irwin says she challenges millennials to not indulge the “consumer fix” or “purchasing high” from buying something new, and others encourage millennials to take a look at long-term financial planning.
“Paying off high-interest loans, and thinking of the opportunity cost of spending a dollar today as the lost ability to earn interest on investments for tomorrow can help millennials reconsider whether that next luxury purchase is truly worth the cost,” Ernest says.
This story was originally featured on Fortune.com
According to the latest data, the countdown to the Bitcoin network’s halving event shows fewer than 10,000 blocks from becoming a reality. Further analysis suggests that the halving is anticipated to take place between April 19 and April 21, 2024, reducing the block rewards from the existing rate of 6.25 bitcoins per block to 3.125 […]
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Retiring comfortably is a dream many have, but studies show most people don’t feel prepared. Relying solely on Social Security isn’t a great plan considering the program only replaces about 40% of pre-retirement income on average.
You need to take matters into your own hands, and steady saving and investing is the best way to get there. The good news is 51% of Americans retire by age 61, according to The Motley Fool, with another 23% retiring between 62 and 64. If you’re looking to retire early while maintaining a comfortable lifestyle, here are some essential steps you should take to make your dream a reality.
Here’s a scary statistic: 25% of non-retirees have no retirement savings. Ask someone older (and wiser) about their regrets, and many will say they regret not putting money aside earlier. Even if you have decades before your goal retirement age, it’s time to begin. An easy way to start is by investing in the S&P 500 index through a vehicle like the SPDR S&P 500 ETF Trust (SPY -0.57%).
The S&P 500 has returned an average of 10% annually over the last 30 years, and it gives investors exposure to some of the most successful companies on Earth while also paying a dividend. The index’s current yield is about 1.4%. However, even that modest amount can add up to a lot over time, thanks to the power of compounding. It’s important to remember the market is not guaranteed to rise 10% each year. There will be up years and down years, but 10% is the index’s average return over time. Investing always involves risk, but the longer the timeline, the lower the risk.
And time in the market is vital as you can see below. A $25,000 investment in the SPDR S&P 500 ETF 30 years ago grew into nearly half a million dollars (without ever adding a penny more of savings).
Data by YCharts.
The earlier you begin saving and investing, the longer you have the power of compounding working in your favor.
There are several tools to help investors save for retirement such as individual retirement accounts (IRAs) and 401(k) plans. These accounts come in two main varieties. A traditional IRA is funded with pre-tax money, so your savings accrue tax-free until you begin withdrawing money, while a Roth IRA is funded with after-tax dollars. Since you already paid taxes on the money in the Roth account, withdrawals are tax-free. There are limits and rules regarding each option, so be sure to consult a tax professional.
Many employers offer 401(k) plans too. Besides the tax advantages, their biggest appeal comes from employers matching your contributions up to a certain dollar amount or percentage of your income. CNBC reports the average company match is 4.7% of an employee’s salary, but only 60% of people with access to 401(k) accounts take advantage of it.
Regular contributions can add up to a lot over time. Starting with the same $25,000 above, contributing $583 monthly (the 2024 IRA annual contribution limit is $7,000), and earning 10% on average through the SPDR S&P 500 ETF would leave you with well over $1 million after 25 years. By starting to invest in your 20s, you could seriously consider retirement as early as your 50s.
Dividend-growth stocks also help a lot of people meet their financial goals. Companies that pay a rising dividend tend to be profitable with stocks that are less volatile than growth companies. In this category, Dividend Kings are the cream of the crop as they have increased their annual payout for at least 50 straight years. This consistency can lead to massive returns over time.
For instance, Coca-Cola and Lowe’s have paid rising dividends for over 40 years, and this consistency has led to massive returns over time.
Data by YCharts.
Collecting and reinvesting dividends from such companies is a terrific strategy for any portfolio.
If you want to live out your golden years on your terms, take advantage of the tools outlined here to help get you there.
Saving for retirement is never easy, and it’s only becoming more challenging. Many jobs no longer offer pensions or other defined benefit plans, and while Social Security can help, it may not be as reliable in the future as it is now. That means many workers are on their own to save for retirement.
While everyone will have different goals and needs, seeing how your savings stack up to the average can be helpful. If you find you’re falling behind, it can provide some extra motivation to build a robust nest egg. And if you’re ahead of the curve, it may help take some of the stress out of retirement planning.
Generation X generally includes those born between 1965 and 1980, or between ages 44 and 59. As this generation nears retirement age, now is the perfect time to double-check that your savings are on track. Here’s exactly how much the average Gen Xer has saved for retirement.
Image source: Getty Images.
Again, there’s no one-size-fits-all answer as to how much you should have saved for retirement. If you live in an expensive city or expect to enjoy a costly lifestyle in retirement, for example, you could need far more than average — and vice versa.
Still, seeing average figures can help give you a ballpark estimate of how much your peers have saved. Researchers from The Motley Fool examined historical data from the Federal Reserve to determine how much U.S. adults across various age groups have saved for retirement.
Among those aged 45 to 54, the average savings in 2022 was $313,220. And those aged 55 to 64 have an average of $537,563 saved.
A more accurate representation of savings, however, may be the median numbers. Averages are often skewed by outliers, including extremely high earners who could have millions saved. In 2022, the median amount saved by those aged 45 to 54 was just $115,000, and the median among those aged 55 to 64 was $185,000.
Seeing how your savings compare to the average and median numbers can be helpful, but it’s more important to look at your unique situation and goals to determine how much you should save for retirement.
A common rule of thumb is that you’ll need around 80% of your preretirement income once you retire. So if you need, say, $60,000 per year to cover all your expenses now, you might need around $48,000 per year in retirement.
This can give you a rough estimate, but to be as accurate as possible, it’s wise to think about how your expenses might change. Certain costs may go down once you retire (such as the cost of commuting and other work-related expenses), but others may increase (especially if you plan to travel or pick up expensive new hobbies).
It’s also a good idea to consider how much income you’ll be receiving from other sources, such as Social Security. Your benefits may not be able to fully fund your retirement, but they can still go a long way. If you haven’t already, you can check your future benefit amount through your mySocialSecurity account online. From there, it will be easier to determine just how much you’ll need to rely on your savings.
You can also run your numbers through a retirement calculator, or you may get an estimate using the rule of 25. If you have an estimate of your annual income requirements, you can multiply that by 25 to see roughly how much you should have saved in total. So if you expect to need, say, $40,000 per year in savings, you might aim to have a total of around $1 million in your retirement fund.
It can be helpful to see how your savings stack up to the average for your age group, but it’s still important to calculate your individual needs. When you know roughly what it takes to retire comfortably, you can ensure you’re doing everything possible to set yourself up for success.
Taiwan’s central bank has completed a feasibility study of wholesale central bank digital currency (CBDC) and is continuing to consider its introduction. The central bank is seeking feedback from businesses and academics and will continue to work on platform design, Deputy Governor Mei-lie Chu said on Dec. 7.
In a lengthy speech at an event for bankers, Chu outlined what she called Banking 4.0, or “services embedded in customers’ daily lives,” including the integration of artificial intelligence and advanced mobile and digital technology into banking. She devoted about half of her presentation to CBDC.
Chu referred to Bank for International Settlements research and said she saw the advantages of CBDCs and tokenization of real-world assets. Furthermore:
“A central bank currency with clearing finality can serve as the operational basis for tokenization.”
Chu mentioned unified ledger technology in particular. A unified ledger, as the name implies, uses a single ledger in a “partitioned data environment” to achieve interoperability among systems.
Related: Financial Supervisory Commission of Taiwan awards first securitized token license
According to the website CBDC Tracker, Taiwan began CBDC research in 2020. It is further along in its development of a retail CBDC and has already tested it in a pilot project with consumers and five commercial banks.
Today’s #Fintech Digest includes the Palau Ministry of Finance on its stablecoin proof-of-concept, Taiwan’s central bank on its wholesale #CBDC feasibility study, and the Basel Committee giving a thumbs down to permissionless blockchain-based crypto. pic.twitter.com/8qTY4QJqCH
— John Kiff (@Kiffmeister) December 8, 2023
Bank disintermediation and interoperability with other payment systems were outstanding issues in Taiwan’s CBDC research, Chu said. The central bank is taking a “prudent” approach to further development of a CBDC with no timeline for a decision, Chu added.
In addition, Taiwan’s Fubon Bank has participated with Ripple and the Hong Kong Monetary Authority in a reverse mortgage pilot project using Hong Kong’s e-HKD CBDC. It has also integrated China’s digital yuan, also known as the e-CNY, into its platform.
Magazine: China’s surprise NFT move, Hong Kong’s $15M Bitcoin fund: Asia Express