It’s been a pretty interesting week and Be[in]Crypto has compiled the most important stories in the cryptoverse for your summary. The stories range from Nomad’s $200 million hack, WazirX investigation by Indian authorities, Michael Saylor stepping down as CEO, 140 billion in stablecoin to re-enter the markets, and the US Senate proposal to make the CFTC crypto chief watchdog. to make.
Don’t forget to subscribe to our newsletter and receive the weekly round-ups straight to your inbox!
Battered crypto projects try to reach a compromise
Nomad, a crypto bridge, suffered a shocking exploit that resulted in the loss of nearly $200 million. The attack shocked the entire cryptoverse as the hackers went to great lengths to impersonate Nomad employees to steal even more money.
Github, a developer platform, fell victim to malware that contained as many as 33,000 . struck Github repositories. The move could have serious implications for developers cloning open source codes as sensitive data such as API keys, crypto keys, and Amazon AWS credentials come within the reach of the attackers.
To control the incidents of exploits, projects have started offering bounties for bad actors to turn them into whiteha hackers. Slope, a Solana-based wallet provider that has suffered a major security breach, has announced that hackers would get 10% of the stolen money and won’t take legal action if they return the money.
White hat hackers managed to recover $9 million of the stolen $200 million, with security firm PeckShield noting that efforts are underway to recover more money. Nomad’s team claims to work with law enforcement agencies and leading blockchain security firms.
Regulators Raise the Bar on Digital Assets
This week saw significant regulatory activity against operators in the cryptoverse. Robinhood was fined $30 million by the New York State Department of Financial Services (DFS) for failing to comply with anti-money laundering regulations for its virtual currency business.
In India, WazirX was under investigation by the country’s Ministry of Finance over charges of money laundering. The effect was the freezing of some of the exchange’s funds due to ties to Chinese loan apps operating in India.
The SEC has sued Forsage and 11 others for their role in a crypto Ponzi scheme that cost investors losses of more than $300 million. The move was the result of a concerted effort between regulators in the Philippines and Canada, as some of the defendants were found guilty of the heavy charges.
Senator Cynthia Lummis was fired from all cylinders this week for claiming that all exchanges operating in the US are under SEC scrutiny. The SEC has stepped up its efforts to control the burgeoning industry by imposing hefty fines and taking projects to court.
Cheers to a new beginning
Hashed, a fledgling investor in LUNA, will be making a comeback to the scene after losing billions to Terra’s collapse. Simon Seojoon Kim, the founder of the project, noted that the company will turn its attention to blockchain gaming and is in the process of raising a multi-million dollar fund.
PwC’s top crypto boss Henri Arslanian is also looking for a fresh start after leaving his role in the company to set up a new digital asset fund. Arslanian chose Dubai as the base for the new funds due to its positive stance on digital currencies and stricter regulations in countries in the Asia-Pacific region.
Michael Saylor has announced that he will step down from his role as CEO of MicroStrategy and assume the role of executive chairman. The decision comes on the heels of MicroStrategy who recorded a $1 billion loss on its Bitcoin business and the need for Saylor to focus on “promoting Bitcoin”.
A wave of positives
Aside from the reports of hacks in the cryptoverse, this week registered a measure of positive reports. As the crypto winter shows signs of thawing, on-chain experts have noted that $140 billion worth of stablecoins could re-enter the markets. Changpeng Zhao, CEO of Binance, noted, “If people want to get out of crypto, most won’t hold stablecoins.”
Instagram created a buzz this week after announcing that the Non-Fungible Token (NFT) feature will be available in 100 countries after being limited to North America and Europe. The team also unveiled an integration with the Coinbase Wallet, Dapper Wallet and Flow blockchain that drove the industry insane.
Tether gave hope to the Ethereum community by stating that it will support ETH 2.0 despite widespread reports of delays. Seeds of doubt were fueled on the grounds that stablecoin issuers would reserve their support following claims that the Ethereum network could forage after the Merge and that stablecoins could face an avalanche of lawsuits if it all goes wrong.
Lawmakers around the world take a stand against crypto
US senators are debating a new bill that would give the Commodity Futures Trading Commission (CFTC) control over crypto markets. The proposed law will change the definition of a commodity to include “digital commodities”, bringing virtual currencies such as Bitcoin (BTC) and Ethereum (ETH) under the Commission’s control.
The impact of the bill will create new categories in the industry such as digital commodities brokers and digital custodians who must register with the commodities before they are allowed to operate.
Bank of Thailand says it will begin experimenting with central bank (CBDC) digital currencies in a retail capacity later in the year. Thailand’s top banks stated that the CBDC experiment would focus on two nuclear weapons: the digital baht’s security and innovative use-case scenarios.
All information on our website is published in good faith and for general information purposes only. Any action the reader takes based on the information on our website is strictly at their own risk.