Monthly Archives: February 2023

26. February 2023
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DeFi Protocol Platypus to Repay 63% of User Funds After $9M Hack

• Platypus Finance, a DeFi protocol for stablecoins, will repay at least 63% of user funds after a $9 million hack.
• The exploit used a bug in the platform’s solvency check mechanism to steal digital assets, leading to its native stablecoin USP losing its dollar peg.
• The protocol worked with crypto exchange Binance and blockchain security firm BlockSec to identify the exploiter and recover stolen funds.

Platypus Finance Hacked for $9M

Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, was hacked last week for approximately $9 million worth of digital assets. The hacker exploited a bug in the platform’s solvency check mechanism that led to its native stablecoin USP losing its dollar peg.

Funds Recovered and Repaid

In response, the protocol worked with crypto exchange Binance to confirm the identity of the exploiter responsible for the attack. It also enlisted blockchain security firm BlockSec to help recover some of the stolen funds. As a result, Platypus announced it would repay users at least 63% of their original funds.

Attack Details

The attack consisted of three consecutive stages which saw digital assets such as Circle’s USDC, Tether’s USDT, Maker’s DAI and Paxos’ binance USD drained from Platypus’ main pool. A part of these assets were sent mistakenly to lending protocol Aave where Platypus has submitted a proposal requesting their release.

Law Enforcement Involved

Apart from repaying users’ funds and working with Binance and BlockSec on recovering lost assets, Platypus also contacted law enforcement authorities and filed a complaint in France against the hacker behind this attack.

Crypto Industry Problematic Security Situation

This incident is yet another example highlighting crypto’s ongoing problem with hackers targeting protocols’ weaknesses or exploiting bugs within their codes in order to siphon off large amounts of digital assets stored within them.

19. February 2023
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TrueFi’s TRU Token Rallies 200% After Binance’s TUSD Mint Sparks Speculation

•TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour due to speculation over a Binance stablecoin transaction.
•The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is.
•TrustToken sold TUSD in 2020 to a firm called Techteryx and separated from the TrueFi protocol and was renamed Archblock last year.

TrueFi’s TRU Token Rallies Over 200%

The TRU token of decentralized lending protocol TrueFi rallied over 200% on Thursday in an hour, data by CoinMarketCap shows, after speculation about a Binance stablecoin transaction sparked among crypto traders.

Binance Mints $50 Million of TrueUSD

Prior to the rally, Binance had minted $50 million of its own version of TrueUSD (TUSD) stablecoin, according to blockchain data. This caused some confusion among traders as they thought it might be related to the TRU token.

TrueFI Issuers Separated Long Ago

However, the speculation about the TRU token was misplaced because the issuers of the TrueUSD and TRU tokens were separated a while ago. TrustToken sold TUSD in 2020 to a firm called Techteryx and was later renamed Archblock last year as TrueFi embarked on its journey towards decentralization.

TRU Surge Triggered By Misinformation

The misinformation led to many traders investing in TRU which triggered its surge as high as 14.6 cents from 4.4 cents on Binance before later paring some of the gains. The token was trading at around 11 cents at press time.

BUSD Drama Sets Stage for Stablecoin Market Reshuffling

The drama surrounding Paxos’ decision to halt minting BUSD set stage for reshuffling within the stablecoin market which could have been misinterpreted by traders who then made investments based on incorrect information leading them towards buying TRU instead of TUSD tokens

12. February 2023
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Kraken to Pay $30M, Shutter US Crypto-Staking Ops to Settle SEC Charges

• The SEC is meeting in a closed-door session on Thursday to settle charges with crypto exchange Kraken over their offering of unregistered securities.
• Under the settlement, Kraken will “immediately” end its crypto staking-as-a-service platform for U.S. customers and pay $30 million to the SEC.
• This includes shutting down their crypto-lending product that offered up to 24% yield as well as their 20% APY staking rewards service.

Kraken Agrees to Shutter US Crypto-Staking Operations

The Securities and Exchange Commission (SEC) is meeting in a closed-door session on Thursday to settle charges with crypto exchange Kraken over their offering of unregistered securities. Under the settlement, Kraken will “immediately” end its crypto staking-as-a-service platform for U.S. customers and pay $30 million to the SEC. This includes shutting down their crypto-lending product that offered up to 24% yield as well as their 20% APY staking rewards service.

Details of Settlement

Kraken offers a number of services under its staking umbrella, including a crypto-lending product offering up to 24% yield which is also expected to shut down under the settlement according Bloomberg news report which stated that Kraken was close to a settlement with the SEC over offering unregistered securities on Wednesday.

SEC Confirmation

The SEC confirmed that Kraken would shut down its staking services for U.S customers after the publication of this article and an announcement may come later in the day from them regarding this matter according an industry source briefed on it who spoke with CoinDesk . A spokesperson from both Kraken and SEC declined comment before publishing this article but did confirm afterwords that this agreement has been made between them .

Implications for Crypto Regulation

CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discussed about wider implications for other cryptocurrency exchanges concerning regulation after this incident took place between the two entities . It will be interesting how other cryptocurrency exchanges respond by taking measures into consideration themselves or if they are forced by law like what happened here with Kraken .

Conclusion

In conclusion, it appears that Kraken has agreed upon settling charges brought against them by paying out $30 million dollars while also immediately ceasing all services relating to cryptocurrency staking within U.S borders in order to avoid any further consequences which could have otherwise been more severe if they weren’t willing to cooperate fully with authorities concerned .

5. February 2023
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Crypto Exchange Bittrex Lays Off More Than 80 Employees

• Bittrex, a Seattle-based cryptocurrency exchange, is laying off more than 80 people.
• The layoffs are attributed to the “new economic environment” in the crypto industry.
• This comes after other crypto exchanges announced similar layoffs due to market downturns.

Bittrex Laying Off More Than 80 People

Seattle-based cryptocurrency exchange Bittrex has confirmed it is cutting its staff by more than 80 people, citing new market conditions as the primary cause of the reductions. In a leaked email on Twitter, CEO Richie Lai told employees that they had been working to reduce costs and increase efficiencies but were unable to do so due to the current economic environment in the crypto industry.

Reasons for Layoffs

The “new economic environment” cited by CEO Richie Lai includes multiple failures in the crypto ecosystem which caused a market downturn by the end of 2020. This has led to Bittrex having to reset their strategy and balance investments accordingly. The layoffs have affected nearly all departments within Bittrex and have come at a time when other major exchanges such as Coinbase and Gemini have also announced cuts due to market declines.

Consequences of Job Losses

CoinDesk estimates that since April 2020, over 29,000 jobs across the crypto industry have been lost due to press releases and media reports related to these layoffs. The effects of job losses can be felt both throughout individual companies and across entire industries as workers struggle with reduced wages or no income at all during this unprecedented time.

Crypto Market Outlook

As cryptocurrency prices remain volatile and many exchanges continue announcing layoff plans, it remains unclear what kind of impact this will have on the global crypto markets going forward. While some experts believe that cryptocurrencies could become more mainstream if governments start issuing them as digital currencies, others are skeptical about how well these digital assets will fare in uncertain economic times like these.

Conclusion

It is clear that crypto exchanges like Bittrex have been hit hard by recent events in the markets, resulting in significant job losses for many individuals across various departments within these companies. However, despite current hardships faced by these firms and their employees, there is still hope for a brighter future for cryptocurrencies if governments continue adopting them into their national economies moving forward.