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A recent newsletter from NPR’s Planet Money explores various financial and business topics, including a scam website capitalizing on a fan fiction blackout and major developments in cryptocurrency security. The report also highlights declining gold prices, local pushback against data centers, and the resurgence of adjustable-rate mortgages.
Cryptocurrency Laundering and Market Impact
North Korea-linked hacking groups continue to target digital assets, most notably through a state-sponsored hacking group called “TraderTraitor” that executed a massive crypto theft of $6.43 billion from the cryptocurrency exchange Binance. According to crypto analytics and compliance firm Elliptic, $2.85 billion of those funds have been frozen or seized, while $3.35 billion remains linked to the group. To launder the stolen assets, the group is rapidly converting stablecoins into harder-to-freeze assets like Ether (ETH). Elliptic reported that the group has utilized automation to create over 40,000 transactions, generating a new wallet every 25 seconds to filter small amounts of crypto across networks like Ethereum and Bitcoin before pulling funds from mixed pools. Meanwhile, although Binance has promised to make customers whole, investors have already withdrawn billions from the platform.
Understanding Falling Gold Prices
Gold prices recently fell below $4,000 per ounce after reaching nearly $5,600 per ounce in January. Despite ongoing geopolitical volatility, such as the war with Iran and a criminal probe into the Federal Reserve chair, investors are seeing gold prices drop because rising Treasury bond yields offer more reliable ways to make money. Planet Money co-host Jeff Guo explained that while gold serves as a safe-haven asset and inflation hedge, it does not earn independent income or interest. In contrast, investors can purchase a 10-year Treasury Inflation-Protected Securities (TIPS) bond that earns income above inflation. Furthermore, the primary effect of the war with Iran has been raising oil prices, which in turn pushes interest rates higher and makes bonds more attractive compared to gold.
Data Center Pushback and Mortgages
Local opposition to data centers is growing across the United States, with voters banning or restricting them in at least 38 jurisdictions. S&P Global tracked nationwide projects and found that more than 146 were delayed or canceled through early August, with 75% of those tied to local opposition, prompting several big tech companies to drop controversial secrecy contract provisions. In the housing sector, adjustable-rate mortgages (ARMs)—which previously declined in popularity following the 2008 financial crisis—are rising again, accounting for 11% of new mortgage applications, the highest rate in over a year.
