Hey folks!

Ever had one of those days where everything seems to go haywire? Imagine that, but on a global scale!

On Friday, the digital world experienced what can only be described as a tech catastrophe of epic proportions. Computers were getting stuck with the dreaded “blue screen of death” — that bright blue error screen that pops up when Windows crashes or can't load.

The culprit?

A seemingly innocent yet faulty update from CrowdStrike, a cybersecurity firm that's usually busy warding off malicious cyberattacks.

The outage was the result of a defect in a software update for its security product, Falcon Sensor. And while your home computer was probably fine, this outage really hit businesses hard.

It caused any Windows computers with Falcon installed to crash without fully loading, sending everything from flights to TV broadcasts into a tailspin. Airports were jam-packed with stranded travellers, banks and hospitals were feeling the heat and our favourite streaming services were suddenly out of service. All thanks to a glitchy update that played havoc with Microsoft's Windows.

Now, CrowdStrike has identified the problem and deployed a fix. And hopefully, we'll have fewer global tech blunders like this in the future. But these incidents really make you think about how scarily dependent we've become on digital systems, no?

Does this mean it's time to have a backup plan that doesn't rely on tech for when things go awry next time? It's kind of funny how tech problems are making us think about going old school!

Here's a soundtrack to put you in the mood 🎵

Snooze by Tushar Mathur

You can thank our talented reader Tushar himself for this rec.

Now, let's get cracking!

A couple of things caught our eye this week 👀

Who stole WazirX's crypto?

WazirX just lost over a whopping $230 million (at least ₹1,900 crores) worth of crypto assets or nearly half of its reserves to a hack attack! The hackers are already offloading these assets for illegal activities, and some analysts think they know who's behind it.

But how did WazirX lose all that crypto, you ask?

It all started with a special type of wallet called a multisignature or multisig wallet, where crypto assets are kept extra secure. This wallet needs multiple keys or passwords to open. For WazirX, it required three keys from their end plus a final approval from Liminal, a company that specialises in storage and wallet services for virtual assets.

Now, here's where the hackers got sneaky. They tampered with the "payload" which is the data sent for approval during a transaction. This move, known as a "transaction manipulation attack" involves changing the transaction details, like the amount being transferred or the recipient's account. By manipulating this data, the hackers managed to redirect control or funds to themselves.

And reports from Elliptic, a blockchain analytics firm, and other cybersecurity researchers believe that the infamous North Korean criminal organisation Lazarus is behind the attack. They've tracked the stolen assets being sold off, and all signs point to Lazarus.

For the uninitiated, Lazarus is a North Korean state-sponsored group known for pulling off some of the biggest crypto heists ever. They're the ones behind the massive $600 million theft from the Ronin Network, which is a blockchain platform designed for games like Axie Infinity.

And linking Lazarus to this heist may actually make sense because North Korea has turned to crypto theft as a way to sustain its economy. With severe sanctions or restrictions imposed by the United Nations, the US and other countries to curb its nuclear weapons program since 2006, North Korea has increasingly relied on these illicit activities. These sanctions have banned the trade of weapons, luxury goods and more. And that has hit North Korea's economy hard.

Despite this, the country continues to push forward with its nuclear and missile technology, feeling threatened by major powers like the US and its allies. And to support its economy and nuclear ambitions, North Korea uses crypto heists, as cryptocurrencies can be laundered more easily and aren't affected by trade sanctions.

In fact, a UN report reveals that North Korea's malicious cyber activities generate around half of its foreign currency income, possibly earning about $3 billion between 2017 and 2023, and covering 40% of the cost of weapons for its mass destruction programs.

Now, even with Lazarus suspected of being behind the heist, WazirX is still determined to recover its stolen assets. But since recovering funds from such high-profile cases is notoriously tough, we'll only have to wait and see how this mystery unfolds.

***

Can India’s economy determine its performance at the Paris Olympics?

The Paris Olympics is kicking off this week, and India is all set with a stellar lineup of 117 athletes competing in 16 sports!

But what are India’s chances of topping its 7-medal haul from Tokyo 2020?

Well, there’s a theory that ties a country’s economic muscle to its Olympic success. Between 1992 and 2021, 65% of high-income and upper-middle-income countries snagged at least 1 Olympic medal. At the Tokyo Olympics, the top 10 countries (8 of them high-income) scooped up 54% of all the medals.

And India’s prospects look promising! Until 2004, India averaged 1 or 2 Olympic medals per Olympic Game. But things changed, culminating into a record 7 medals in 2020. India has since ramped up its Olympic investments, spending over ₹470 crores this time, with a whopping 1,600% increase in funding for athletics alone!

Our economy has also soared, growing 5x over the last two decades to $3.9 trillion, and this economic boost seems to be fuelling our Olympic dreams.

But it’s not just about the money. Top athletes are now receiving immense support, training abroad and working with the best support staff. But, as Abhinav Bindra, India’s first individual Olympic gold medalist, points out ― focusing solely on elite athletes won’t make India a sporting superpower. To hit double-digit medal tallies, we need more people in sports. You could look at the US, which holds the record for the most Olympic medals in history, for instance. It’s sending over 590 athletes to Paris this year!

Anyway, that’s something for the government to think about for future strategies. But right now, we’re here cheering for our athletes and wishing them all the best!

Jargon of the day ✏️

This Day in Financial History 📜

16th of July, 1935 ― The world's first parking metre is installed in Oklahoma City

On this day, US' Oklahoma City made a splash in history with the installation of the world's very first parking metre, thanks to the ingenious Carl Magee.

Back in the 1930s, the streets outside retail stores in the city's main business area were jam-packed with cars, mostly from people working there or retail staff. This left shoppers and visitors struggling to find parking, often forcing them to park far away or even turn around and go home. Sometimes, cars didn't move for weeks, which really hurt local businesses.

Enter Magee, a lawyer and journalist with a turbulent past dealing with political scandals, who decided to start fresh in Oklahoma City by launching a newspaper, the Oklahoma News. With his knack for solving tricky problems, Magee was appointed Chair of the Traffic Committee and tasked with tackling the city's parking nightmare.

His solution?

The Park-O-Meter, a clever little coin-operated device that charged cars 5 cents per hour for parking. The first 150 metres were installed on a sweltering July day. And despite some initial grumbling and even a legal challenge, the metres quickly proved their worth. They were a game-changer, making sure parking spots were regularly freed up for new customers, which helped local businesses thrive and even boosted commercial property values.

The concept caught on and spread across the country, and by 1941, there were 1,40,000 parking metres in use, growing to millions in the US over the following decades.

And even while mechanical metres began giving way to digital ones starting in 2017, Magee's groundbreaking invention became a symbol of creative problem-solving.

Readers Recommend 🗒️

This week our reader Snehil Jain recommends watching Kaagaz Ki Kashti, a documentary about Jagjit Singh, the legend who brought ghazals into the Indian music mainstream.

Thanks for the rec, Snehil!

Finshots Weekly Quiz 🧩

It’s time to announce the winner of our previous weekly quiz. And the winner is…🥁

Ravindra Bhandari! Congratulations. Keep an eye on your inbox and we’ll get in touch with you soon to send over your Finshots merch. And for the rest of you, we've moved the quiz to our weekly wrapup. So make sure you answer all the questions correctly by 12 noon on July 27, 2024 (Saturday) and tune in here next week to check if you got lucky.

Also, some readers pointed out that we made an error in the previous version of a question on our Thursday's newsletter. We're sorry about that. But we've now changed the question to fix it. And don't worry if you've already answered the quiz, we'll take this into account when we pick the winners.

Anyway, that's it from us this week. We'll see you next Sunday.

Until then, don't forget to tell us what you thought of today's newsletter. And send us your book, music, business movies, documentaries or podcast recommendations. We'll feature them in the newsletter! Just hit reply to this email (or if you're reading this on the web, drop us a message: morning@finshots.in).

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