Crypto News Roundup: August 5, 2023 👀

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5 Aug 2023

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Hello, crypto enthusiasts! Welcome to another edition of Crypto News Roundup, where I bring you the most important and exciting developments in the crypto space.

Today, I have some interesting stories to share with you, ranging from regulatory battles to hacker drama. Let’s dive right in!

Revolut To Suspend Cryptocurrency Services In US ❌

Revolut, the popular digital bank that offers crypto trading services, has announced that it is closing its U.S. crypto platform due to the uncertain regulatory environment in the country. The platform stated that it will begin by suspending access to buying cryptocurrencies from Sept. 2 and later completely shutting down access to crypto from Oct 3.

The platform also stated that, in the case of its U.S. users not selling their crypto holdings before Oct. 2, the company will liquidate any remaining balance on Oct. 3 and grant them the same market price for each token at that time.

This is a disappointing news for many Revolut users who enjoyed the convenience and simplicity of buying and selling crypto on the platform. Revolut said that it made this decision after careful consideration and consultation with its legal advisors, and that it hopes to resume its crypto services in the U.S. as soon as possible. However, it is unclear when and how that will happen, given the lack of clarity and consistency in the U.S. crypto regulations.

Revolut is not the only crypto platform that has faced regulatory challenges in the U.S. Recently, Binance.US, the American arm of the world’s largest crypto exchange, announced that it is looking for a new CEO after Brian Brooks resigned from the position after only three months. Brooks cited differences over strategic direction as the reason for his departure, but some speculate that he was frustrated by the regulatory hurdles that Binance.US faced.

The U.S. crypto market is one of the most lucrative and influential in the world, but it is also one of the most complex and uncertain. Many crypto platforms and users are hoping for more clarity and guidance from the regulators, especially from the SEC, which has been cracking down on several crypto projects and platforms.

Source: CoinTelegraph

Looter Behind $61M Curve Hack Starts Returning Assets, Raising Hope for Recovery 🙌

In a surprising twist of events, the hacker behind the $61 million Curve exploit has reportedly returned some of the stolen assets. Specifically, the hacker returned 4820.55 alETH ($8,889,118) to the Alchemix Finance team and 1 ETH ($1,844) to the Curve Finance team. Notably, the return of assets come after the affected protocols offered a 10% no-questions-asked bounty to the attacker.

The hacker exploited a vulnerability in Curve’s alETH pool on Aug. 2, draining over 2 million alETH tokens from the pool. The alETH tokens are synthetic tokens that represent ETH locked in Alchemix’s protocol, which allows users to borrow stablecoins against their future yield. The hacker was able to manipulate the price of alETH on Curve’s pool by creating a flash loan of over 100 million DAI and swapping it for alETH on Saddle Finance, another decentralized exchange. This caused a huge price discrepancy between alETH on Curve and Saddle, allowing the hacker to arbitrage between them and drain Curve’s pool.

The exploit caused a lot of panic and anger among Curve and Alchemix users, who saw their funds disappear or lose value overnight. The teams behind both protocols quickly responded by pausing their contracts and investigating the incident. They also offered a 10% bounty to the hacker if they returned the stolen funds.

Interestingly, the hacker left a message in one of the return transactions. It reads,

“I saw some ridiculous views, so I want to clarify that I’m refunding you not because you can find me, it’s because I don’t want to ruin your project, maybe it’s a lot of money for a lot of people, but not for me, I’m smarter than all of you."

The message suggests that the hacker was not motivated by greed or malice, but rather by curiosity and challenge. It also implies that they are confident about their anonymity and security.

The return of some of the stolen assets has raised hope for recovery among Curve and Alchemix users, who are still waiting for more updates from both protocols on how they will handle the situation. The teams have expressed their gratitude to the hacker for returning some of the funds, but also urged them to return all of them.

Source: CoinDesk

Coinbase Seeks to Toss SEC Suit, Citing Ripple Crypto Ruling ⚖️

Coinbase, one of the largest and most reputable crypto exchanges in the world, has reportedly filed a motion to dismiss the U.S. Securities and Exchange Commission’s lawsuit against the platform. Notably, Coinbase cited the decision taken by the judge in the Ripple Labs’ XRP lawsuit to argue that the SEC has no authority over its activities.

The lawsuit stems from the SEC’s allegation that Coinbase violated securities laws by offering a lending program that would allow its users to earn interest on their crypto holdings. The SEC claimed that the program involved the sale of unregistered securities, and threatened to sue Coinbase if it launched the program. Coinbase decided to cancel the program, but also filed a preemptive lawsuit against the SEC, seeking a declaratory judgment that the program did not involve securities.

In its motion to dismiss, Coinbase argued that the SEC’s claim is baseless and contradicts its own previous statements and actions. Coinbase pointed out that the SEC has never provided clear guidance on what constitutes a security in the crypto space, and that it has allowed other platforms to offer similar lending programs without any enforcement actions.

Coinbase also cited the recent ruling by Judge Sarah Netburn in the Ripple case, where she denied the SEC’s request to access Ripple’s legal communications. Judge Netburn ruled that Ripple’s fair notice defense, which asserts that the SEC failed to provide adequate notice that XRP was considered a security, was relevant and legitimate.

Coinbase argued that this ruling supports its argument that the SEC has not provided fair notice to the crypto industry, and that it should not be allowed to retroactively apply securities laws to its lending program. Coinbase’s motion to dismiss is a bold move that challenges the SEC’s authority and legitimacy in regulating the crypto space.

It also shows that Coinbase is not backing down from its fight with the regulator, and that it is willing to defend its rights and interests in court. The outcome of this case could have significant implications for the future of crypto regulation in the U.S., and potentially set a precedent for other crypto platforms and projects facing similar lawsuits from the SEC.

Source: Bloomberg

Elon Musk Claims X ‘Never Will’ Launch A Crypto Token 🔎

Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has declared that neither he nor his social media platform X will ever launch a crypto token. Notably, the declaration came in response to a post by X user DogeDesigner who cautioned readers to be wary of scam tokens that falsely claim connections to the platform.

X is a new social media platform that Musk launched in July 2023, as an alternative to Twitter and Facebook. The platform claims to offer more freedom and creativity for its users, allowing them to create and share various types of content, such as text, images, videos, audio, and code. The platform also features a gamified system where users can earn XP points for their activities and level up their profiles.

However, X does not have any native token or cryptocurrency associated with it, unlike some other social media platforms such as Steemit or BitClout. This has not stopped some scammers from creating fake tokens that claim to be affiliated with X or Musk himself. For example, some tokens have used names such as X Coin, Musk Coin, or Elon Coin, and have tried to lure unsuspecting investors with false promises of profits or access to exclusive features on X.

Musk has been vocal about his support for cryptocurrencies, especially Dogecoin, which he often tweets about and promotes. However, he has also warned his followers about the risks and scams in the crypto space, and advised them to do their own research before investing in any token. He has also clarified that he does not have any personal involvement or endorsement of any crypto project or token, except for Dogecoin.

Musk’s statement that X will never launch a crypto token is a clear indication that he wants to keep his social media platform separate from his crypto interests. It also shows that he is aware of the potential legal and regulatory issues that could arise from launching a token, especially in light of the ongoing lawsuits against Ripple and Coinbase by the SEC. By avoiding any association with crypto tokens, Musk may be trying to protect his platform from any unwanted scrutiny or interference from regulators or authorities.

Source: The Block

Worldcoin’s Orb Had Serious Security Vulnerability in Operator Onboarding: CertiK ❗️

Worldcoin is a project that aims to create a new global digital currency that is distributed to everyone in the world through a biometric scanning device called the Orb. The Orb is supposed to scan the user’s eye and generate a unique identifier that is linked to their Worldcoin wallet. The project claims that this method ensures fairness, inclusivity, and privacy for its users.

However, the project has also faced a lot of criticism and controversy, especially regarding the security and ethics of its Orb device. Many people have questioned the safety and reliability of the device, as well as the potential risks of exposing one’s biometric data to a third party.

Recently, a security firm called CertiK revealed that it had discovered a serious security vulnerability in the Worldcoin’s Orb device, specifically in the vetting process for operators. Operators are the people who run and maintain the Orb devices in different locations around the world. They are supposed to undergo a rigorous verification process before they can operate an Orb, which includes an interview and an ID check.

However, CertiK found that this process could be easily bypassed by an attacker, who could exploit a flaw in the Orb’s software and gain access to the operator dashboard without being interviewed or having a proper ID. This would allow the attacker to operate an Orb without any oversight or accountability, and potentially compromise the security and privacy of the users who scan their eyes with the device.

CertiK reported this vulnerability to the Worldcoin team as a “standard whitehat disclosure”, meaning that they did not intend to harm or expose the project, but rather to help them improve their security. The Worldcoin team acknowledged the vulnerability and said that they had fixed it within 24 hours. They also thanked CertiK for their responsible disclosure and cooperation.

This incident shows that Worldcoin still has a lot of work to do to ensure the security and trustworthiness of its Orb device and its global currency project. It also highlights the importance of security audits and testing for any crypto project, especially those that involve sensitive data and hardware. As crypto users, we should always be vigilant and cautious about any new project or device that claims to offer us something revolutionary or innovative, and do our own research before we participate or invest in them.

Source: CoinTelegraph

Conclusion 🙏

That’s all for today’s Crypto News Roundup! I hope you enjoyed reading our summary of the latest crypto news, and learned something new along the way. If you did, please share this article with your friends and family who are interested in crypto.

And don’t forget to subscribe to my newsletter for more updates on the crypto world. Until next time, stay safe and happy trading! 😊

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