Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.

Today in crypto, Bubblemaps claimed a cluster of Polymarket wallets has a 98% win rate on military events. Echo Protocol lost 1,000 eBTC from an admin key compromise, and cryptocurrency investment products posted heavy outflows last week as investors reduced risk amid inflation and geopolitical fears.

Blockchain data platform Bubblemaps said it identified a cluster of Polymarket wallets that collectively earned $2.4 million with a 98% win rate on contracts tied to US military operations.

Nine wallets placed all their major bets just before major military developments, including the Feb. 28 attack on Iran, the killing of Iranian Supreme Leader Ayatollah Ali Khamenei and the US-Iran ceasefire agreement, Bubblemaps wrote in a Monday X post.

The accounts were all funded through centralized cryptocurrency exchanges in a tight timeframe and made some minor losing bets on Feb. 20, which likely served to “avoid attention,” according to Bubblemaps. Four of them each made around $400,000 in profit on their bets that the US would strike Iran on Feb. 28.

The investigation highlights the growing insider trading concerns tied to decentralized prediction markets such as Polymarket and Kalshi. It aimed at curbing insider trading on prediction markets.

A cluster of wallets posted a near-perfect win rate on prediction-market contracts tied to military events on Polymarket. Source: Bubblemaps

While the data platform doesn’t have definitive proof that the accounts belonged to insiders, the onchain trail is “symptomatic of someone with an unfair informational advantage,” Nicolas Vaiman, the CEO of Bubblemaps, told Cointelegraph.

Decentralized finance protocol Echo Protocol was exploited after an attacker minted about 1,000 unauthorized eBTC on the protocol, which is deployed on the Monad blockchain.

Blockchain security firm PeckShield and analytics platform Lookonchain both reported the incident on Tuesday, noting that a hacker minted 1,000 synthetic Bitcoin (eBTC) worth around $76.7 million.

“We are currently investigating a security incident impacting the Echo bridge on Monad. All cross-chain transactions remain suspended while the investigation is underway,” Echo Protocol said on Tuesday.

This latest exploit comes in a month that has seen at least 12 protocols compromised, including THORChain, Verus Protocol’s Ethereum bridge, Transit Finance, TrustedVolumes and Ekubo.

According to PeckShield, the attacker attempted to launder some of the loot by depositing 45 eBTC worth around $3.45 million into DeFi lending and liquidity management protocol Curvance.

The attacker then borrowed 11.3 wrapped Bitcoin (wBTC) worth $868,000 against it, bridged the tokens to Ethereum, swapped them for ETH, and sent 384 ETH worth about $822,000 to the Tornado Cash mixing service.

The attacker still holds 955 eBTC worth about $73 million, according to DeBank.

Cryptocurrency investment products posted heavy outflows last week as investors reduced risk amid inflation fears and uncertainty over a lasting ceasefire between the United States and Iran.

According to CoinShares’ latest weekly report, digital asset exchange-traded products (ETPs) recorded $1.07 billion in net outflows, ending a six-week streak of inflows. It marked the third-largest weekly outflow this year.

Bitcoin (BTC) investment products accounted for the bulk of the withdrawals, with $982 million in outflows. Ether (ETH) products lost $249 million, their largest outflow since the week ending Jan. 30.

Altcoin funds bucked the broader trend. XRP (XRP) investment products drew in $67.5 million, while Solana (SOL) funds added inflows of $55.1 million.

Despite last week’s outflows, both Bitcoin and Ether ETPs remain firmly positive on a year-to-date basis. Source: CoinShares

Source: https://cointelegraph.com/news/what-happened-in-crypto-today?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound