Month: February 2023

Platypus Repays 63% of Funds After $9M Hack – Crypto Exchange Binance Helps

• Last week, a hacker exploited a bug in the Platypus Finance protocol to steal $9.2 million worth of digital assets.
• The protocol has since managed to recover $2.4 million of USDC stablecoins and Tether froze $1.5 million of stolen USDT.
• Platypus Finance has promised to repay users at least 63% of their funds.

Platypus Finance Suffers Major Hack

Last week, the Avalanche-based protocol Platypus Finance was hacked for $9M worth of digital assets. The exploit took advantage of a bug in the platform’s solvency check mechanism, leading to its native stablecoin USP being depegged from the dollar.

Recovery Efforts So Far

The protocol worked with crypto exchange Binance to identify and confirm the identity of the exploiter responsible for last week’s attack, who used a Binance account that had gone through know-your-customer checks for a withdrawal request. Additionally, blockchain security firm BlockSec recovered $2.4 million worth of USDC stablecoins while Tether froze $1.5 million worth or USDT tokens stolen from the hack. Furthermore, around $380K of stablecoins were mistakenly transferred to lending protocol Aave; however Platypus has submitted a proposal to Aave’s governance forum for release of those funds as well.

Repayment Plan

In light of these efforts, Platypus is planning on repaying at least 63% of user funds that were lost in the attack back to them – an unprecedented level given most protocols are unable to recover any funds after such hacks occur.

A Rampant Problem

The exploit on Platypus is another reminder that hacking continues to be one of crypto’s biggest problems and platforms need stronger security measures in order protect user assets better going forward.

Law Enforcement Involvement

Platypus contacted law enforcement and filed a complaint with authorities in France regarding this incident and is working with them towards resolving this situation further as well as pursuing legal action against those responsible for it..

TRU Token Rallies 200% After Binance’s TUSD Mint Sparks Speculation

• The TRU token, the governance token of decentralized lending protocol TrueFi, surged 220% in an hour on Thursday.
• The rally appears to be from traders mistakenly connecting it with TUSD, a stablecoin that had been issued by TrueFi in the past but no longer is.
• Binance minted $50 million of TrueUSD (TUSD) stablecoin, sparking speculation among traders about TUSD potentially gaining a larger role in trading on Binance.

TRU Token Rallies Over 200%

The TRU token, the governance token of decentralized lending protocol TrueFi, surged 220% in an hour on Thursday. This rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but no longer is.

Binance’s TUSD Mint Sparks Speculation

Binance, the world’s largest crypto exchange by volume, minted $50 million of TrueUSD (TUSD) stablecoin earlier this week which sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued Binance USD (BUSD).

TrustToken and TrueFi Separation

TrustToken sold TUSD in 2020 to a firm called Techteryx which is an Asia-based conglomerate with businesses … in traditional real estate, entertainment, environmental and information technology industries. TrustToken also separated from the TrueFi protocol and was renamed Archblock last year as TrueFi embarked on a road to decentralize the platform.

TRU Surge

TRU surged 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.

Conclusion

In conclusion, it appears that speculation surrounding TRU rallying over 200% came from traders mistakenly connecting it with TUSD; however since TrustToken separated from Truefi last year this speculation appears to have been misplaced due to them being two different entities now. Despite this TRU still saw impressive gains before paring back some losses at press time

IRS Seeks Court Approval to ID Crypto Users on Kraken Exchange

• The U.S. Internal Revenue Service (IRS) has filed a court petition to enforce its summons against the Kraken crypto exchange and its subsidiaries.
• Kraken recently settled Securities and Exchange Commission (SEC) charges it offered unregistered securities through its staking-as-a-service program and will pay $30 million in fines.
• The IRS is looking to examine Kraken’s books and papers in order to determine the identity of U.S. customers who conducted transactions in cryptocurrency for the years ended December 31, 2020, 2021, 2022, and 2023.

IRS Takes Aim at Kraken Crypto Exchange

The U.S. Internal Revenue Service (IRS) has filed a court petition seeking permission to enforce a summons for information against the Kraken crypto exchange and its subsidiaries. The IRS first issued a summons in 2021 but so far, Kraken has failed to comply with the request for documents related to customer identity and their cryptocurrency related transactions from 2020 – 2023.

Kraken Fined by SEC

Kraken recently announced it would pay $30 million in fines as part of settling Securities and Exchange Commission (SEC) charges that it had offered unregistered securities through its staking-as-a-service program for U.S customers, which will be immediately discontinued following the settlement agreement with the SEC..

What Information Is The IRS Seeking?

The IRS is looking to examine Kraken’s books and papers in order to determine the identity of U.S customers who conducted transactions in cryptocurrency during the years ending December 31st of 2020 – 2023 as well as their correct federal income tax liability associated with these activities during this time period..

Implications For Crypto Regulation

CoinDesk Global Policy & Regulation Managing Editor Nikhilesh De discussed some of the wider implications that come along with this action taken by the IRS including increased scrutiny on cryptocurrency exchanges when it comes to compliance with laws related to money laundering and other financial crimes..

Final Thoughts

This recent move by the IRS shows increased enforcement efforts concerning digital assets are likely here to stay moving forward into 2021 & beyond as regulation surrounding cryptocurrencies continues to evolve around jurisdictions all across America & elsewhere around world..

Crypto Winter Leads to 91% Plunge in VC Investments

• Crypto startups only raised $548 million in January, a 91% drop from January 2022.
• The FTX collapse likely played a role in the decrease in venture capital investments.
• Most of the January 2023 deals were early-stage companies and CeFi investments dropped off significantly.

Crypto Winter Led to Significant Investment Decline

A CoinDesk analysis shows crypto startups only raised $548 million last month, a 91% decrease from $6 billion in January 2022. The FTX failure’s full impact on industry fundraising is yet to be seen, as many transactions take months to close. Venture capital (VC) and other investments plummeted and most of the 2023 deals were for smaller companies.

FTX Collapse Impacted CeFi Investments

The collapse of FTX created doubts about centralized exchange (CeFi) models for trading crypto, resulting in 99% drop of CeFi deals to $22.8 million in January 2023. Many investors shifted their focus towards decentralized finance (DeFi) and decentralized exchanges (DEX). The coming months will reveal how much investment capital dried up after the FTX scandal came to light.

Blockstream Investment Was Sole Deal Exceeding $100 Million

January 2022 saw 17 investment rounds that exceeded $100 million, including the transaction that valued the now-collapsed FTX crypto exchange at $32 billion. An investment in Blockstream was the only deal that big a year later, highlighting just how much funding has decreased over time due to crypto winter conditions and market uncertainty.

Fundraising Deals Take Time To Finalize

Funding rounds can take months to finalize or close, meaning any drought resulting from the November FTX collapse might not even be fully reflected yet by last month’s low numbers. This suggests more caution may be needed when predicting future industry trends based on recent data points alone.

Conclusion

This data reveals just how much volatility exists within cryptocurrency markets and serves as a reminder that investors must remain cautious when investing in this space – especially during times of economic uncertainty such as we are currently experiencing with cryptocurrency winter conditions leading to significant declines across all metrics of venture capital investments for crypto startups