Another BSC-based DeFi Protocol gets Exploited for Over $30 Million

Another Binance Smart Chain (BSC)-based DeFi Protocol Gets Exploited for Over $30 Million

Spartan protocol team ensures that they will rebuild with a focus on review, unlike Uranium Finance which, after the $50 million exploit, said the project won’t be reborn and is currently activating the distribution of 300k.

Over the weekend, yet another BSC-based DeFi protocol got exploited.

On Saturday, Spartan Protocol, a project that incentivizes deep liquidity pools for leveraged synthetic token generation, reported an attack that resulted in a loss of more than $30 million.

Its native token SPARTA took over a 40% drop as a result of the exploit but had since then recovered to $1.65, just about 25% down from its ATH of $2.25 from mid-February.

The next day, blockchain security company PeckShield Inc. released an analysis of the attack stating it was due to a flawed liquidity share calculation in the protocol, which was exploited to drain assets from the pool.

As for the technical part of the attack that involved a number of operations to prepare the vulnerable pool and then manipulate it to drain funds, the attacker first borrowed a flashloan from PancakeSwap with 10K WBNB, which was returned at the last step with 260 WBNB as the flashloan fee.

The vulnerability stems from the fact that the liquidity share calculation calcLiquidityShare() is querying the current balance, which can then be inflated for manipulation, noted PeckShield Inc.

Spartan Protocol team ensured that they would rebuild with a focus on reviews. It also mentions that their code that contained the flaw was already audited by CertiK.

While sharing this, it further said that “Sparta is innovative code, built from scratch, it is not a clone of anything,” amidst the growing criticism around the DeFi projects built on BSC copying other projects that are already running on Ethereum.

“Sparta does not copy a single line of SNX code, and the Sparta community feel the brand is sufficiently differentiated, un-owned, and unique to the BSC community,” it stated.

Earlier last week, another BSC-based DeFi project, Uranium Finance, was exploited for $50 million despite the project being audited by BSC Gemz, which didn’t pick up the critical vulnerability.

The exploit was possible due to an update of the codebase for v2, which changed the swap fees from 0.20% to 0.16%.

Unlike Spartan Protocol, Uranium Finance said they are not releasing v3, adding, “We will not be trying to make this project reborn again, doing so is not possible under these circumstances.”

Currently, they are activating the distribution of less than 300k from the bonus money pot while asking users to remove liquidity from pools.

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Author: AnTy

“It’s not a bull market without FUD,” says CEO as Binance Gets Probed by CFTC

“It’s not a bull market without FUD,” says CEO as Binance Gets Probed by CFTC

Jake Chervinsky is urging caution, to take this “seriously,” saying the “CFTC & SEC have fully shut down crypto companies for regulatory violations before.”

Leading spot cryptocurrency exchange Binance is being investigated by the Commodity Futures Trading Commission (CFTC) over concerns that it allowed Americas to trade on the platform that violated US rules.

The CFTC is investigating if the exchange permitted US residents to trade derivatives, reported Bloomberg on Friday. While the exchange says it doesn’t have a corporate headquarters, the report notes that it has a Singapore office.

Binance isn’t registered with the agency. However, unlike BitMEX, Binance hasn’t been accused of misconduct, and the investigation may not lead to enforcement action, the report added.

Interestingly, the news came on when the market saw a deep sell-off that took Bitcoin to $3,800 a year back. As of writing, BTC is trading around $57,400 while BNB, the native token of Binance exchanges at $272, down about 20% from its $340 peak hit on Feb. 19.

Amidst this, Binance Chief Executive Officer Changpeng Zhao made several tweets referencing the regulatory action as “FUD.”

However, Jake Chervinksy, General Counsel at Compound Finance, urges the crypto community to take things “seriously.” He said,

“Even without individual criminal charges, civil enforcement actions can have serious consequences. CFTC & SEC have fully shut down crypto companies for regulatory violations before.”

Just this week, Binance named a former U.S. politician Max Baucus as a policy and government-relations adviser. The 79-year-old Democrat has served as Senator from Montana for over three decades, including the Senate Finance Committee for seven years.

Baucus will provide guidance and policy advice and further liaise with U.S. officials on best practices and policies affecting the industry, said Binance in a statement. And today, Binance is facing scrutiny from the regulators. However, what’s important is that it has a San Francisco-based exchange Binance.US that was established in 2019.

In the past 24 hours, its US entity recorded $655 million in volume, nowhere near the $32.7 billion managed by Binance. In the Bitcoin futures market, Binance leads with $31.44 billion volume and $3.67 billion in bitcoin open interest, as per Skew.

The exchange also follows withdrawal limits, analyzes deposits for signs of illicit transactions, and implements know-your-customer (KYC) restrictions on its users.

“Binance is committed to working closely with governments around the world,” maintains “CZ.”

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Author: AnTy

43 Million Retail Investors Now Gets Access to SUSHI, MATIC, & SKL on Coinbase Pro

43 Million Retail Investors Now Gets Access to SUSHI, MATIC, & SKL on Coinbase Pro

SKALE (SKL) reacted the most to the Coinbase Pro listing. The three crypto-assets will begin trading on March 11 and are not yet available in New York State and on Coinbase.com or its mobile apps.

Coinbase, the leading US cryptocurrency exchange, has listed popular DeFi token SUSHI along with MATIC and SKL.

SUSHI is the governance token of Sushiswap, the second-largest decentralized exchange (DEX), managing about $500 million in daily trading volume. The DeFi token is trading at $18.50, up 450% YTD.

MATIC powers the Polygon Network that aims to provide faster and cheaper transactions on Ethereum using Layer 2 sidechains. Trading at $0.321, the token has been having a spectacular 2021 with 1,720% gains this year so far.

The company disclosed that its investment arm, Coinbase Ventures invested in the project Matic in 2019 and owns MATIC tokens.

Unlike the other two tokens, SKALE reacted to the listing the most with a 93% increase in value, currently trading around $0.55. It is an Ethereum-compatible decentralized network designed to scale Web3 applications.

All three crypto-assets are listed against USD, BTC, EUR, and GBP, with SUSHI having an additional pairing with ETH as well.

Now, US users will be able to get access to these DeFi tokens, which, as Coinbase revealed in its SEC filing, are 43 million. Also, institutions will be joining in as they now account for 64% of Coinbase’s volume by customer segment as of Q4 2020.

These cryptos will be available in all of the exchange’s supported jurisdictions except for New York State. For now, they are not yet available on Coinbase.com or through its mobile apps either.

While the transfers on Coinbase Pro accounts are now opened, trading will begin on March 11.

These listings are just one of the many DeFi tokens that the exchange has been exploring for listing. Several major DeFi tokens, including AAVE, Bancor (BNT), Synthetic (SNX), YFI, Uniswap (UNI), Maker (MKR), are already on Coinbase.

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Author: AnTy

$72M New Crypto VC Fund Gets Backing from Billionaires like Paul Tudor Jones & LL Cool J

$72M New Crypto VC Fund Gets Backing from Billionaires like Paul Tudor Jones & LL Cool J

A new $72 million venture capital crypto fund has been announced by private equity veteran Glenn Hutchins, his son Jame Hutchins and partner Travin Scher, who previously ran investments at Digital Currency Group.

The fund has drawn the interest of several big names, including hedge fund billionaire Paul Tudor Jones; James Todd Smith, better known as LL Cool J; and Indra Nooyi, the former CEO of PepsiCo.

Other high-profile investors in the fund include billionaire co-founder of Apollo Group, Josh Harris; SoFi CEO and Twitter COO, Anthony Noto; former CEO of TD Ameritrade, Joe Moglia; owner of the Florida Panthers hockey team, Vincent Viola; and venture capitalist Geoff Yang.

Crypto, according to Glenn Hutchins, “is the proverbial next big thing.”

Hutchins first began investing in crypto back in Jan. 2016 when the price of Bitcoin was around $400. Today, Bitcoin is worth $37,000. Hutchins said,

“Crypto promises not just to revolutionize finance but also to invent a new computing paradigm that will be as transformational as the PC, the internet, mobility, and the cloud.”

The fund has been in the making for the past year and was launched out of North Island Ventures, a New York-based VC firm founded in 2017.

Scher took to Twitter to share information about this venture, which has already made investments in seven projects, including Dapper Labs, that created gaming dApp Crypto Kitties, Flow Blockchain, and NBA Top Shot, startup Nori which is working on a carbon removal marketplace, and Axelar focused on scaling cross-chain communication.

“We believe that crypto offers solutions to some of the world’s most pressing problems,” said Scher. Through this fund, they are supporting those that are bringing these solutions to life.

“Year one has been a blast, and we’re just getting started,” tweeted Scher.

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Author: AnTy

Blockchain Payment Firm, Wyre, Gets A $5M Investment From Stellar Development Foundation

Blockchain Payment Firm, Wyre, Gets A $5M Investment From Stellar Development Foundation

In a press statement shared with BitcoinExchangeGuide, the foundation stated that it is investing $5 million worth of Enterprise Funds that will help introduce various payment application programming interfaces, commonly known as APIs, which can integrate with different apps within the Stellar ecosystem.

The foundation also explained that on/off ramps for Stellar USDC will also be rolled on for the existing fiat pairs consisting of USD, GBP, CAD, AUS, and EUR.

Founded in 2013, Wyre has executed transfers of more than $5 billion and provides advanced services to both businesses and individuals such as crypto to fiat ramps, crypto wallet infrastructure, savings account, and foreign exchange others.

The foundation stated that the addition of Wyre to the Stellar network would help create crucial payment infrastructure and allow for relationships that will connect to the international financial system.

“Growing the network of Stellar anchors— stablecoin issuers and on/off ramps — is fundamental to how Stellar connects global financial systems with blockchain technology. Bringing Wyre’s industry-leading payment APIs to the Stellar ecosystem will empower businesses, especially anchors, to expand existing payment corridors and develop new ones.”

Denelle Dixon Stellar Development Foundation CEO

Dixon is also set to become a member of Wyre’s board of directors to represent Stellar Foundation.

With Stellar USDC set to go live in Q1, Wyre will help in different ways. Wyre is set to offer a compliant and safe way for apps within the Stellar ecosystem to use the dollar-pegged stablecoin without the developers’ need to create additional tools, the statement elaborated.

Stellar’s Enterprise Fund was launched last year, and Wyre’s investment is the first one for this year. Cumulatively the fund has pumped more than $14 million in different companies and projects so far, including Abra, Settle Network, SatoshiPay, and DSTOQ.

Stellar Foundation’s chief operating officer, Jason Chilpala, explained that the Enterprise Fund was started to offer support to businesses with goals in tandem with Stellar’s, such as enabling cheap and reliable cross-border payments.

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Author: Joseph Kibe

Facebook Owned WhatsApp Changes Privacy Policy; Telegram and Signal Gets Promoted

Facebook Owned WhatsApp Changes Privacy Policy; Telegram and Signal Gets Promoted

Popular Messaging app WhatsApp has changed its terms on Thursday that will allow it to share more information about billions of its users with its parent company Facebook and to further roll out ads and e-commerce.

Users must accept the changes, or their access to the service will be cut off from Feb. 8.

The updated terms will allow additional sharing of information like contacts and profile data but not the contents of messages, between WhatsApp and Facebook and its other applications such as Messenger and Instagram.

“If the only way to refuse (the modification) is to stop using WhatsApp, then the consent is forced as the use of personal data is illegal,” said Arthur Messaud, a lawyer for La Quadrature du Net, an association that defends internet users.

The changes would not affect EU and UK-based users.

Facebook bought WhatsApp in 2014, and two years later, it gave users a one-time chance to opt-out of sharing app data with the social media giant.

Brian Acton and Jan Koum, the founders of WhatsApp, left the company in 2017 and 2018, both of whom vehemently opposed the decision to monetize the platform through ads. Koum even called for people to “delete Facebook.”

This move by WhatsApp prompted calls for users to delete their accounts and switch to encrypted messaging apps like Telegram and Signal.

Tesla CEO and un-official DOGE CEO, Elon Musk, who has become the richest person in the world, recommended users to switch services, tweeting “Use Signal,” hours after criticizing Facebook via a meme.

“We need Web 3.0 now more than ever. We’re losing control of our own information, identity & destiny every day. A decentralized & fair internet made of distributed ledger technologies allows us to dismantle centralized tech giants & rightfully own our data,” said Jay Hao, CEO of cryptocurrency exchange OKEx.

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Author: AnTy

Tron Network Suffers A ‘Large Scale Attack’ Now Back Online After Two Hours Of No Blocks

“TRON network gets back to normal. Enjoy sending money on TRON!” said Justin Sun, founder of Tron and CEO of BitTorrent.

The tweet has been regarding the Tron blockchain halting block generation early on November 2nd at block height 24653194. It hasn’t been until just over two hours later that it resumed.

Due to maintenance, several cryptocurrency exchanges Huobi, BitMAX, and Hufu then announced the suspension of deposit and withdrawal of Tron and TRC20 tokens, as per a Chinese media outlet.

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After the network was back online again, Sun took to Twitter to share the reason behind the downtime.

“During the 4.1 version upgrade period, the TRON Mainnet was attacked by a malicious contract on 2020.11.02 at 06:14 (HKT),” said Sun.

The attacker was able to initiate malicious transactions and cause Super representatives to suspend block production by using the authority granted to the contract developer.

“As the busiest blockchain network in the industry, the attacker hopes to get profit from the suspension of block production.”

But the Tron community acted immediately and fixed the problem. At 08:29, the main Tron network gradually resumed block production, and at 9:40, it returned to normal.

Sun further ensured that the data on the 15th largest blockchain remains intact, and the assets of the users are also “absolutely safe.”

“Withstand this large-scale attack, once again proving that the TRON network is the decentralized network with the most resilience and attack defense capabilities in the industry,” said Sun.

The price of the token TRX remained unaffected by the reports of an attempted malicious attack. At the time of writing, TRX was trading at $0.0248, down 4% along with the rest of the crypto market, which is recording losses across the board in tandem with the fall in BTC price to under $13,350.

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Author: AnTy

JPMorgan: Corporate Demand for Bitcoin Is A Strong Vote of Confidence for its Future

The tables have turned.

As Bitcoin gets special attention from the publicly traded companies, the banking giant’s views are also changing about the leading digital asset.

According to JPMorgan, Jack Dorsey’s Payment company Square investing $50 million investment in Bitcoin is a “strong vote of confidence for the future of bitcoin.”

What started with MicroStrategy, the first publicly-traded company to put $475 million worth of Bitcoin in its Treasury, has gained strength with Square’s 1% bitcoin allocation. Yesterday, $10 billion asset manager Stone Ridge also announced that it had made BTC its primary treasury reserve asset.

According to the bank’s strategists, including Nikolaos Panigirtzoglou, this signals that Square sees a “lot of potential” for the cryptocurrency as an asset.

Not only it expects Square to make more BTC purchases in the future, but it also expects other payments companies to follow in its footsteps or risk being left out of a growing segment.

Square already has a deeper connection with Bitcoin; it allows people to buy the digital asset and even actively participates in its development through a special division of Square Crypto. Not to mention, its CEO is a vocal Bitcoin proponent who sees BTC becoming a currency of the internet.

JPMorgan also noted that millennials have been using Cash App to buy BTC; this demand, along with the purchases made by companies like MicroStrategy, indicates the demand for Bitcoin surpassed its supply at a greater level in Q3 than in Q2.

Amidst this source of corporate demand, Bitcoin’s price is trading around $11,400, down from above $11,700 it reached yesterday.

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While BTC has made a good head start this month, JPMorgan only sees a “modest headwind” for Bitcoin in the short term based on its intrinsic value. Although a drop in September eliminated much of the “froth,” it remains 13% higher than the intrinsic value estimate.

Futures show that “there still appears to be an overhang of net long positions.” Meanwhile, options contracts volume is rising, which strategists said is likely that retail traffic is driving this surge.

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Author: AnTy

Tron (TRX) Defies Market Trend & Gravity to Climb the Ranks Thanks to DeFi Hype

You can hate him, you can love him, but you can’t ignore him because this marketer gets it done.

That’s right, Justin Sun, known for making announcements of announcements of announcements and who once called his own token “shitcoin,” does everything to keep his crypto afloat.

On Thursday, there has been a bloodbath in the majority of the markets with crypto markets experiencing a deep correction.

Following Bitcoin, which went down to almost $10,000 level, altcoins shed 20% to 30% of their values.

But one coin that was decoupled from the king and the general trend in the markets was Tron.

The token started surging right from the beginning of this week but gained momentum yesterday when it spiked 60%.

Although TRX did crash, 32%, as well, along with the rest of the market, it started the day strong and in the green. Still, the digital asset is currently in the green, though barely, while trading around $0.0390.

“TRX defying gravity while everything else including traditional markets are crashing,” applauded trader CryptoSqueeze.

These gains had TRX going to the level last seen in mid-June 2018, and making its way back into the top 10 cryptocurrencies. However, this digital asset that has a market cap of $2.67 billion is still 86% down from its all-time high of $0.30 made in July 2018.

Tron-based decentralized lending platform JUST, Sun’s foray into the DeFi world, was also on the up and up at $0.068 yesterday before finally feeling the heat and falling 22% today.

JUST then ventured into DEX as well as its liquidity pool, JustSwap, which surpassed 80 million worth of USDT within 10 minutes of its launch. This AMM reached $600 million in trading volume today, in just 17 days of its launch and also records transactions “two times higher than Uniswap,” shared Justin.

Justin is wasting no opportunity, and with that earlier this week, he also announced the launch of SUN Genesis Mining. This new venture comes with features like venture capital investments, private equity investments, no pre-mining or reserves for the team, and wholly operated by the community through its open-source smart contracts. He tweeted,

“We hope to use SUN to promote the development and possibilities of TRON’s DeFi self-governance community. I hope the entire crypto community may judge its success, not by its price, but instead by the indomitable spirit that underpins the SUN: its community!”

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Author: AnTy

South Korean National Assembly Passing Of Two Amendments, Making Crypto Legal

  • Crypto trading and holding gets an official entry in the legal system of the South Korea
  • President Jae-in Moon to sign it into law that will take about 18 months
  • The law requires exchanges to be in full compliance, verify their customers with an approved Korean bank & obtain ISMS certification

First, it was India, now South Korea has taken a positive step towards cryptocurrencies. The recent amendment of the Act on Reporting and Use of Specific Financial Information passed today during a session of the National Assembly, which officially allows crypto trading and holding.

After 2-years of deliberations, trial and error, South Korean lawmakers officially passed this amendment, which provides crypto traders official entry into the legal system of the country, according to The News Asia. However, this new amendment requires crypto exchanges to comply with the legal requirements.

For the amendment to be enacted, it still needs an official sign-off by President Jae-in Moon. Once he signs the amendment, the enactment process will begin one year from then, including a 6 months grace period. It also means the crypto exchanges have to be in full compliance by Sept. 2021.

New AML Laws to Combat Financing of Terrorism

Up until now, crypto exchanges in South Korea have been self-governing. But now, exchanges, wallets, trusts, along with ICOs will be required by law to verify their customers with a Korean bank that has been endorsed to prevent money laundering. The verification system of real names went into effect in early 2018, by South Korea’s top financial regulator Financial Services Commission (FSC).

Information security management system (ISMS) certification will need to be acquired from the Korea Internet Security Agency (KISA) by all Crypto-related companies. Once crypto companies obtain these credentials, they will be legally allowed to operate within S.Korea. It’s a costly certification to obtain, however, with all exchanges now need to require one, or they will run the risk of shutting down.

While individuals like Hanbitco’s CEO, Sunga Kim, have applauded this new development, adding that,

“a foundation has been created to wash away the stigma of cryptocurrency exchanges, fraud, and debauchery and establish itself as a transparent and reliable industry. It will lead the development of the industry with the inflow of new capital.”

Others haven’t been so optimistic with the scrutiny and tighter regulations.

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Author: AnTy