Crypto News Roundup: July 31, 2023 👀

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31 Jul 2023

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Hello, crypto enthusiasts! Welcome to the Crypto News Roundup, where I bring you the latest and most important news from the world of cryptocurrencies.

Today, I have some exciting stories to share with you, so let’s get started!

Vyper Vulnerability Exposes DeFi Ecosystem to Stress Tests ❗️

The DeFi ecosystem has been hit by a series of attacks that exploited a critical vulnerability in the Vyper programming language. Vyper is a contract language designed for the Ethereum Virtual Machine (EVM) that aims to be simple, secure, and easy to audit. However, it turns out that some versions of Vyper had a bug that allowed attackers to perform reentrancy attacks on smart contracts that used the language.

A reentrancy attack is a type of exploit where an attacker can repeatedly call a function of a smart contract before the previous call is completed, resulting in unexpected behavior and potentially draining funds from the contract. This is what happened to several DeFi protocols that used Vyper-based contracts, such as Alchemix, PEGd, Metronome, Ellipsis, and Curve Finance.

The attackers were able to steal millions of dollars worth of cryptocurrencies from these protocols by exploiting the reentrancy lock bug in Vyper versions 0.2.15, 0.2.16 and 0.3.
The Vyper team has acknowledged the issue and advised users to upgrade to the latest version of the language (0.3.1) or use Solidity instead.

They also stated that they are working on improving the security and testing of the language and that they will conduct a post-mortem analysis of the incident. The DeFi protocols affected by the attacks have also taken measures to mitigate the damage and prevent further exploits. Some of them have paused their contracts, refunded their users, or deployed new versions of their contracts .

This incident shows how vulnerable the DeFi ecosystem can be to coding errors and malicious actors. It also highlights the need for more rigorous auditing and testing of smart contracts before deploying them on the blockchain. As the DeFi space grows and innovates, it also faces more challenges and risks that require constant vigilance and improvement.

Source: CoinTelegraph

Upbit Halts Trading of Curve Finance’s Token After $100M Exploit ❌

One of the DeFi protocols that suffered from the Vyper vulnerability was Curve Finance, a decentralized exchange for stablecoins and other pegged assets. Curve Finance lost over $100 million worth of crypto due to a reentrancy attack on its TriCrypto pool, which contained wrapped Ether (WETH), USD Coin (USDC), and Tether (USDT). The attacker was able to drain 2,631 ETH, 5.6 million USDC, and 1.1 million USDT from the pool by exploiting the bug in the Vyper contract.

The attack had a significant impact on Curve Finance’s native token, CRV, which dropped by more than 10% in price after the incident. As a result, some crypto exchanges decided to suspend the trading of CRV to protect their users from volatility and potential losses. One of them was Upbit, a South Korean exchange that announced that it had temporarily halted deposits and withdrawals for CRV.

Upbit stated,

“Today, certain vulnerabilities have been discovered in some of the stablecoin pools associated with Curve (CRV). As a result, CRV is currently experiencing significant volatility. We advise exercising caution when considering any investments related to CRV. To ensure the safety of digital asset transactions, we have temporarily suspended deposits and withdrawals for CRV.”

Upbit did not specify when it would resume the trading of CRV, but it said that it would notify its users once the situation stabilizes. Other exchanges that also suspended CRV trading include Bithumb and Coinone. Curve Finance has since deployed a new version of its TriCrypto pool contract that fixes the bug and migrated all funds from the old pool to the new one.

Source: CoinDesk

BNB Smart Chain Hit with Copycat Vyper Attack, $73K Exploited 🧐

The BNB Smart Chain (BSC), a blockchain network that runs parallel to Binance Chain and supports smart contracts and DeFi applications, has also been affected by copycat attacks that exploited the Vyper vulnerability. According to BlockSec, a blockchain security firm, around $73,000 worth of crypto on BSC has been stolen across three exploits on the network.

The first exploit targeted PancakeBunny’s Qubit Finance protocol, which lost $50,000 worth of WBNB (wrapped BNB) due to a reentrancy attack on its QBT-WBNB pool. The second exploit targeted Belt Finance’s Venus pool, which lost $18,000 worth of WBNB due to a similar attack. The third exploit targeted PancakeSwap’s Ellipsis pool, which lost $5,000 worth of BUSD (Binance USD) due to another reentrancy attack.

These attacks show that the Vyper vulnerability was not limited to the Ethereum network, but also affected other blockchains that supported the language. The BSC team has advised users to avoid using Vyper contracts until the issue is resolved and to use Solidity instead. The DeFi protocols affected by the attacks have also taken steps to secure their funds and prevent further exploits .

Source: CoinTelegraph

SEC Asked Coinbase to Halt Trading in Everything Except Bitcoin, CEO Says 🔎

Coinbase, one of the largest and most popular crypto exchanges in the world, has recently been involved in a legal dispute with the U.S. Securities and Exchange Commission (SEC) over its plans to launch a lending product called Lend.

The SEC sued Coinbase for allegedly violating securities laws by offering Lend without registering as a broker. Coinbase denied the allegations and argued that Lend was not a security and that the SEC did not provide clear guidance on how to comply with the law.

However, according to a Financial Times report, the SEC had asked Coinbase to stop trading in all cryptocurrencies other than bitcoin (BTC) prior to suing the exchange. The report claims that the SEC wanted Coinbase to delist all tokens that could be considered securities under the Howey test, a legal framework that determines whether an asset is a security or not.

The SEC also reportedly threatened to sue Coinbase if it did not comply with its demands.
Coinbase CEO Brian Armstrong stated,

“We really didn’t have a choice at that point, delisting every asset other than bitcoin, which by the way is not what the law says, would have essentially meant the end of the crypto industry in the US. It kind of made it an easy choice . . . let’s go to court and find out what the court says.”

Armstrong also said that he was confident that Coinbase would win the case and that he hoped that the outcome would provide more clarity and certainty for the crypto industry in the US. He added that he was open to working with regulators and lawmakers to create a fair and transparent regulatory framework for crypto.

Source: FT.com

Binance Obtains License to Operate as Virtual Asset Exchange in Dubai 🚀

Binance, another major crypto exchange and rival of Coinbase, has reportedly obtained an Operational Minimum Viable Product license from Dubai’s Virtual Asset Regulatory Authority (VARA). The license will allow Binance FZE, the exchange’s Dubai subsidiary, to operate virtual asset exchange services in Dubai. However, the services enabled by the license are currently limited to institutional and qualified retail investors in Dubai.

Binance FZE is one of the first entities to receive such a license from VARA, which was established earlier this year as part of Dubai’s efforts to become a global hub for crypto and blockchain innovation. VARA is responsible for regulating and supervising virtual asset activities in Dubai and ensuring compliance with international standards and best practices.

Binance FZE stated,

“We are honored to be among one of the first entities granted an Operational Minimum Viable Product license by VARA. This is an important milestone for us as we continue our mission of increasing access to digital assets globally while adhering to local regulations.”

Binance FZE also said that it plans to expand its services and offerings in Dubai in the future and that it looks forward to working with VARA and other stakeholders to foster a healthy and sustainable crypto ecosystem in Dubai.

Source: TheBlock

Conclusion 🎉

That’s all for today’s Crypto News Roundup! I hope you enjoyed reading my stories and learned something new about the crypto world. Stay tuned for more updates and insights from us. Until next time, happy trading!

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