Direction: North Korean Hackers Army and US SEC Chairman

SEC Chairman Gary Gensler can be said to be the "public enemy number one" in the recent crypto community. Just a few days ago, ConsenSys lawyer Bill Hughes even compared him to the North Korean hackers Lazarus Group, calling them the "biggest enemies of cryptocurrency". So what are his specific comments and the attitudes of onlookers? Compiled by Odaily author Aya.

Opinions in the article represent the original author's, not Odaily's position.

Bill's opinions and comments from onlookers

This is how Bill evaluated the two on his Twitter: "The biggest enemies that cryptocurrency faces now - Gary Gensler and the Lazarus Group. If we can eliminate these two enemies, the regulatory environment in the United States will completely change. It is worth noting that Gensler may leave the SEC before the Lazarus Group stops plundering DeFi. The Lazarus Group poses a greater challenge and a bigger threat to the US allowing P2P. (Also: the Reed/Warner bill is a response to the Lazarus Group.)"

Marc Goldich, the General Counsel of Proximity Labs, expressed his attitude in a reply to this tweet: "Maybe you're right... but at the same time, there will always be bad actors used as an excuse to strengthen government surveillance," to which Bill replied, "If it weren't for Lazarus and intelligence agencies claiming 'this thing supports the Democratic People's Republic of Korea,' these national security hawks wouldn't even know of the existence of cryptocurrency, and Warren would only be pushing for legislation that has no place to go."

Some comments challenged Bill's views and believed that "without the cat-and-mouse game, we would never get antifragile systems... There will always be bad actors and poorly incentivized systems."

But more people support Bill's point of view and focus on the North Korean hackers. "The SEC's attack is very dangerous for cryptocurrencies, but it will gradually fade away. The more difficult problem is how to stop Lazarus." "Lazarus is a real problem. That's why OFAC designated Tornado as a sanctioned entity."

The overlooked Gary?

Obviously, the onlookers have focused on Pyongyang, thousands of miles away, and overlooked another protagonist - Gary Gensler. To some extent, this also represents the view of the majority - compared to the "internal troubles" who are cutting into the giants, the "external troubles" who can steal their money at any time are more important.

However, the former's impact on the industry is happening all the time: just on Wednesday, Gensler proposed an additional budget funding of $72 million for the SEC at the US Senate Appropriations Committee and stated that the SEC must expand its scale, including protecting investors from the impact of the cryptocurrency industry "filled with misconduct." Even in the face of multiple artillery fire and setbacks in the XRP and Coinbase lawsuits, Gensler still maintains his attitude towards regulation and law enforcement and "reserves the right to appeal."

Gensler's regulatory stance on the cryptocurrency market is unwavering. Although some believe that his regulatory measures may limit innovation and freedom in the industry, from another perspective, regulation also brings opportunities to the industry and encourages industry participants to pay more attention to compliance and risk management - although there is considerable controversy over whether this has brought opportunities or destruction.

But regardless of whether this SEC chairman can "disappear before the sun comes out tomorrow," compared with the hackers in Pyongyang, his influence and decision-making, as well as a series of policies and measures set during his tenure, may have a greater impact on the long-term development of the industry.

The overly emphasized Lazarus

It is undeniable that North Korean hackers have indeed made enough headlines in the past two years - you can always find their traces in every case of large-scale theft on the blockchain. According to Chainalysis data, North Korean hackers have stolen over $3 billion in cryptocurrencies in the past five years, and they have penetrated various projects more through social engineering attacks. For example, last year, they pretended to be recruiters on LinkedIn and contacted a Sky Mavis engineer. The hacker handed the engineer a document for review as part of the recruitment process, and this document contained malicious code, allowing the hacker to infiltrate Sky Mavis and steal over $600 million in the Ronin Bridge attack.

But as the comment says, "there will always be someone who becomes the next Lazarus." In the chaotic dark forest, there is never a lack of opportunistic presence. If North Korean hackers disappear one day, there will still be other hacker organizations or individuals constantly seeking opportunities to attack the ecosystem of blockchain projects. And it is precisely the encirclement, pursuit, and sanctions imposed by the United States on North Korea in the traditional financial order that have given these "hidden talents" the opportunity to show their skills in the virtual world. And this is exactly the best proof of Bitcoin's role as an unregulated medium of exchange.

Left or Right?

The cryptocurrency ecosystem has been evolving for over a decade since the birth of Bitcoin. With more and more people getting involved and due to its unique technological characteristics, traditional organizations and governments have also begun to gradually realize the existence of this emerging phenomenon.

On the one hand, the decentralization and unregulated nature of cryptocurrencies have attracted the attention and participation of many people. They provide individuals with more financial freedom and opportunities, driving financial innovation and inclusive development. The chaos and uncertainty in the cryptocurrency market have also brought enormous potential returns for investors, attracting a large number of venture capitalists and entrepreneurs.

On the other hand, regulatory agencies and traditional financial institutions are also becoming increasingly involved in cryptocurrencies. They are trying to introduce regulatory measures to ensure market transparency, stability, and investor protection. The entry of traditional financial institutions has also brought more liquidity and legitimacy to cryptocurrencies, but at the same time, it has also brought a certain degree of centralization and regulatory pressure.

Since the beginning of this year, various regulatory measures have been implemented globally, and traditional financial institutions have been flocking to the cryptocurrency field. All these factors have forced the entire industry to stand at a crossroads of destiny, facing an important choice: whether to continue to maintain the chaos and charm of the Wild West pioneering spirit or to choose to come down from the mountain and seek peace as soon as possible. The answer to this question is still full of unknowns.