Crypto Guides, Knowledge & Insights

Curve Incident Report: Approximately $61.7 Million Loss Across 4 Pools, Next Steps Include Halting G

On August 1st, Curve Finances official account retweeted a post from the crypto risk assessment group LlamaRisk, which detailed a post-mortem analysis of the Curve pool reentrancy exploit. According to LlamaRisks report, a bug in the older version of the Vyper compiler caused a failure in the security feature used by certain limited Curve pools, allowing attackers to deplete the tokens in the affected pools. While Curve is trying to reach out to the exploiters and recover user funds, the exploitation of this vulnerability directly harmed the interests of Curve liquidity providers in the affected pools. Thanks to the efforts of white-hat hackers, the DAO managed to recover some of the tokens from the affected pools. The Curve eDAO is unable to pause the Curve pools or handle user funds in any way, but it can stop the CRV Gauge emissions to the Curve pools. It is expected that the eDAO will eliminate all Gauge emissions to the affected pools.　　In this incident, the affected pools and the corresponding losses are as follows:　　pETH/ETH pool: 6,106.65 WETH (approximately $11 million).　　msETH/ETH pool: 866.55 WETH (approximately $1.6 million) and 959.71 msETH (approximately $1.8 million).　　alETH/ETH pool: 7,258.70 WETH (approximately $13.6 million) and 4,821.55 alETH (approximately

2023-08-01Deep Dive

SEC Sues HEX Founder Richard Heart For $1 Billion Securities Fraud

Richard Heart, founder of HEX cryptocurrency, faces SEC charges for alleged securities fraud, raising over $1 billion through unregistered sales to retail investors.　　The lawsuit accuses Heart of misappropriating $12.1 million of investor funds for luxury purchases, including a 555-carat diamond and high-end cars.　　SEC seeks permanent injunction, disgorgement of gains, and civil penalties in a high-profile case that sends shockwaves through the cryptocurrency community.　　Richard Heart　　The Securities and Exchange Commission (SEC) filed a fraud lawsuit against the controversial entrepreneur, who is currently residing in Finland, alleging that he raised more than $1 billion through the unregistered offer and sale of crypto asset securities to retail investors globally.　　The SECs complaint specifically pointed out that the cryptoassets Hex, PulseChain, and PulseX all fall under the category of securities. According to the lawsuit, Heart consistently touted these investments as a guaranteed pathway to immense wealth for investors, going as far as claiming that HEX was destined to be the most appreciating asset in the history of humankind.　　The accusations against Heart and PulseChain are grave, as the SEC claims that they defrauded investors by misappropriating at least $12.1 million of PulseChain investor funds. Shockingly, these funds were allegedly used by Heart to indulge in extravagant purchases,

2023-08-01Deep Dive

Coinbase CEO Claims SEC Demanded Delisting of Altcoins

Coinbase SEC lawsuit raises concerns of regulatory control over crypto market.　　SEC considers all assets, other than Bitcoin, to be securities.　　Outcome of the case could set a critical precedent for crypto regulations.　　This revelation has raised eyebrows and ignited concerns among industry stakeholders, as it signals the SECs intentions to exert regulatory control over the broader crypto market.　　According to Armstrong, the SEC conveyed its stance, stating that they consider all assets, other than Bitcoin, to be securities. The exchange‘s CEO sought clarification on the basis for such a conclusion, but the response was unequivocal – “all assets of the company will be delisted.” If Coinbase complies with the SEC’s demands, it could establish a precedent that might force numerous U.S. crypto businesses to discontinue their operations unless they register with the commission.　　The potential delisting of all tokens other than Bitcoin from Coinbase, one of the leading cryptocurrency exchanges, could have a cascading effect on other platforms and projects, leading to increased regulatory scrutiny.　　However, Coinbase‘s response to the SEC’s demands remains uncertain. While the SEC declined to comment on the matter and the implications of the potential settlement, market participants are closely monitoring the situation. The outcome of this case could set a

2023-08-01Deep Dive

Shanghai’s Bold Vision: Revolutionizing Urban Life with Blockchain Digital Infrastructure

Shanghai Municipal Government announces a groundbreaking plan to implement urban blockchain digital infrastructure from 2023 to 2025.　　Objectives include enhancing real economy sectors, improving public services, and creating a transparent urban governance ecosystem using blockchain technology.　　Chinas commitment to technological advancement is evident as it aims to become an international blockchain exchange hub.　　Outlined in the plan are three key objectives that the government seeks to achieve. First, the government plans to strengthen the use of blockchain technology in critical sectors such as finance, industry, and trade. By doing so, they aim to elevate efficiency, security, and transparency, leading to a more robust and reliable economic ecosystem.　　Second, the application of blockchain technology will extend to key areas like health, education, and transportation, aiming to optimize service delivery and increase citizen satisfaction. This move will revolutionize public service management and ensure better access and quality of services for residents.　　Finally, the Shanghai Municipal Government is committed to employing blockchain technology to build a more effective, transparent, and accountable governance system. This measure will foster greater public trust and participation in city affairs.　　This project aligns with Shanghais broader strategic goal of digital transformation, with the city taking significant strides towards comprehensive urban development. By harnessing the

2023-08-01Deep Dive

Stablecoin Protocol Ethena to Build Decentralized Perpetual Trading Integration on Synthetix

On July 28th, the stablecoin protocol Ethena announced its plan to build decentralized perpetual trading integration on the Synthetix platform. The goal is to become a liquidity provider on the Synthetix perpetual platform, offering USDe as a collateral instrument with embedded yield trading and approving USDe as eligible collateral for selected pools. In the next quarter, Ethena Labs contributors will conduct internal testing on Delta Neutral USDe in collaboration with its investors and whitelisted capital partners.　　According to Axios, the crypto startup Ethena has successfully completed a $6 million seed funding round, with Dragonfly leading the investment and support from various trading platforms like Deribit, Bybit, OKX, Gemini, and Huobi, as well as backing from BitMEX founder Arthur Hayes and his family office. Ethenas stablecoin USDe is developed to hedge price risks by using users collateral and maintains its peg to the US dollar through perpetual swaps shorting Ethereum.　　

2023-07-31Deep Dive

Series of Exploits Hit Curve Finance’s Liquidity Pools

Curve Finance faces multiple exploits on its liquidity pools, resulting in significant losses for projects like Conic Finance, JPEGd, Metronome, and Alchemix.　　Speculated reasons include vulnerabilities in programming language versions and manipulation of the “get_virtual_price” function, highlighting the need for enhanced security measures in the DeFi space.　　The recent incidents, involving Conic Finance, JPEG‘d, Metronome, and Alchemix, have raised concerns within the DeFi community. The string of attacks began with Conic Finance on July 21, where assets were drained due to a connection with LP Tokens on Curve Finance. Subsequently, on July 30, the Lending NFT JPEG’d project reported an exploit involving the pETH-ETH liquidity pool on Curve Finance, resulting in an $11 million loss.　　The same day, Metronome also suffered a $1.6 million loss following a similar exploit. Additionally, Alchemixs alETH became a victim, experiencing an estimated $13.6 million loss linked to a liquidity pool on Curve.　　The exact reasons behind these exploits have not been fully disclosed at this time. However, the community has speculated two primary factors. First, vulnerabilities in versions 0.2.15/0.2.16/0.3.0 of the VyperLang programming language are suspected. These versions lack the Re-Entrancy anti-attack filter, enabling hackers to execute rounding attacks and withdraw funds from liquidity pools.　　The second conjecture, outlined

2023-07-31Deep Dive

Peru Cracks Down On Crypto Crimes: New Decree Sets Stage For Industry Regulation

Peru issues a decree to regulate the crypto industry and combat money laundering and terrorism financing.　　Crypto exchanges are required to adhere to anti-money laundering rules and report to UIF-Peru.　　Other South American countries follow suit in regulating digital assets.　　Under the new regulations, virtual asset service providers, including individuals and companies within Peru, are now obligated to report crucial information to the Financial Intelligence Unit (UIF-Peru). This move is aimed at bolstering the countrys financial system and safeguarding it from illicit activities that might exploit the anonymity often associated with cryptocurrencies.　　One of the key focal points of the decree is the FATFs “travel rule,” which underscores the need for implementing robust Know Your Customer (KYC) standards within the cryptocurrency ecosystem. By adhering to the travel rule, exchanges are required to collect and share customer data, thereby enhancing transparency and thwarting potential financial crimes.　　The decree, which has already come into effect, is expected to have a considerable impact on the crypto industry in Peru. Stakeholders, including crypto exchanges and other virtual asset service providers, are now faced with the challenge of boosting their compliance efforts to align with the new regulations and foster a secure environment for cryptocurrency transactions.　　However, the decree has not

2023-07-31Deep Dive

Kenyans Get Excited About Worldcoin With Free Tokens for Eye-Scanning Verification

Kenyans are intrigued by Worldcoins free WLD tokens for eye-scanning verification.　　Quickmart Outlets in Nairobi attract enthusiastic young participants.　　Privacy concerns and token volatility raise questions amidst strong investor support.　　Launched just five days ago on Monday, July 24, the Worldcoin app utilizes special machines, known as Orbs, stationed in 35 countries, including Kenya, to perform the eye-scanning verification process.　　The allure of receiving free tokens has drawn a surge of young people to at least 13 Quickmart Outlets in Nairobi, where these Orb devices are located. Eager participants can scan their eyeballs, and upon successful verification, they are rewarded with WLD tokens. These tokens can then be transferred to popular crypto exchanges, such as Binance, and used to purchase various other cryptocurrencies.　　The value of the first 25 WLD tokens stands at around Sh7,786 ($55), offering early adopters a tangible incentive to participate in the scheme. James Makau, a bodaboda driver from Ruaka, shared his success story, having earned Sh6,461 ($45.6) from scanning his iris and subsequently converting his tokens into Kenyan shillings by trading them for USDT, a different cryptocurrency.　　Worldcoin, co-founded by Sam Altman, the CEO of OpenAI, the developer of ChatGPTs artificial intelligence platform, has ambitious goals. Their mission is to grant

2023-07-31Deep Dive

TokenUnlocks: Multiple Tokens Valued at $31 Million Unlocking Daily

Token Unlocks tweeted that multiple tokens valued at $31 million per day or over $217 million per week are linearly unlocking/inflating.　　The top 3 tokens with linear unlocks/inflation are as follows:　　WLD: $7.26 million per day　　UNI: $2.76 million per day　　SOL: $2.28 million per day　　The top 6 tokens have a combined daily linear unlock/inflation value of up to $17.8 million, accounting for 57.4% of the total.　　Additionally, a total of 13 tokens are scheduled to unlock this week. Among them, DYDX, SUI, NYM, and GAL will experience unlocks worth tens of millions of tokens.　　

2023-07-31Deep Dive

Vulnerability in Vyper Leads to Attack on Curve Stablecoin Pools (alETH/msETH/pETH)

Vyper, the programming language of Ethereum, tweeted at 12:44 am that versions 0.2.15, 0.2.16, and 0.3.0 have a vulnerability in the staircase lock.　　At 12:45 am, Curves official Twitter announced that due to the staircase lock issue, stablecoin pools (alETH/msETH/pETH) using Vyper 0.2.15 were attacked. The team is assessing the situation and will provide updates to the community as it develops. Other pools remain secure.　　According to the latest statistics from PeckShield, the attack resulted in approximately $52 million in losses.　　Due to the asset theft, the CRV price has dropped by 16% in the last 24 hours.　　The continuous decline in CRV price may lead to the liquidation of Curve founder michwill. According to Debank data, michwill has used CRV as collateral to borrow stablecoins such as USDT and USDC from lending protocols like AAVE, Frax, Abracadabra, and others.　　https://debank.com/profile/0x7a16ff8270133f063aab6c9977183d9e72835428？chain=eth　　

2023-07-31Deep Dive

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