Daily Crypto News | August 3rd, 2022

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Welcome to Barmy’s Daily Crypto News – August 3rd, 2022

1. Solana, USDC Stolen From Crypto Wallets In A Recent Attack

Late Tuesday night, an unidentified assailant stole Solana and USDC valued at at least $4 million from hundreds of wallets. The breach, which was still active at 8:00 PM PST, appeared to come from the Phantom wallet on the Solana browser and was thought to have compromised user keys. It may have involved seedphrases that were reused by several wallets on various chains.

“Over 5,000 Solana wallets have been drained in the past few hours,” blockchain audit OtterSec reported earlier. “These transactions are being signed by the actual owners, suggesting some sort of private key compromise.” Watcher Guru updated the count to 8,000 after a short while.

Together, engineers from around the Internet—including from blockchains other than Solana—were attempting to identify the root source of the vulnerability and its scope. A representative for the Ethereum wallet MetaMask said, “We are actively communicating  with the affected wallet teams to offer our help and monitor if there is anything we can do to keep our users safer.”

2. Crypto Lender Vauld Is Given Temporary Protection By Singapore High Court

According to Bloomberg, the Singapore High Court has granted Defi Payments Ltd., the parent company of cryptocurrency lender Vauld, a three-month protection from creditors. This will enable Vauld to restructure and get ready for a potential acquisition by rival Nexo, a significant player in the crypto lending market.

An injunction was authorized by Justice Aedit Abdullah on Monday during a court proceeding until November 7. Vauld’s 147,000 creditors will not be permitted to file lawsuits against it at that time. The judge expressed concern that a six-month protection would not ensure “adequate supervision and monitoring,” despite the fact that it had requested three further months.

Nevertheless, he noted, the moratorium can be extended depending on an evaluation of the firm’s interaction with the creditors. During the following hearing, its advancement in that area will be taken into consideration. Abdullah requested that a creditors committee be established by the company to handle the unresolved problems in the interim.

3. Robinhood Crypto Faced $30M Fine From New York Regulators

For many regulatory infractions, the New York Department of Financial Services has fined Robinhood Crypto $30 million.

After conducting an examination, the department came to the conclusion that the corporation had not adhered to its requirements regarding anti-money laundering and sufficient cybersecurity measures. The department’s rules for virtual currency, money transmitters, transaction monitoring, and cybersecurity were determined to be broken by Robinhood Crypto.

In addition to paying the penalties, Robinhood Crypto will also be compelled to employ a third party consultant to assess its compliance with state laws, the regulator said in a statement. The business was also criticized for not listing a specific phone number on its website that allowed users to file complaints.

4. Kim Kardashian Attempts To Evade EthereumMax Lawsuit

EthereumMax is the cryptocurrency recently promoted by a few wealthy athletes and celebrities. In a class-action complaint, at least nine investors, including Kim Kardashian, are demanding restitution from the celebrities in question.

The claim that billionaire socialite Kim Kardashian supported the “pump and dump” token is still being fought by her. Her attorneys attempted to have the case against her dropped on Friday by filing a motion in a U.S. District Court in California.

According to the lawsuit, the plaintiffs experienced “investment losses” and blame social media posts on EthereumMax made by celebrities.

5. OpenSea NFT Gifting Feature Might Be Troubled From Miscategorized Transactions

Predatory NFT traders may take advantage of the uncertainty over mislabeled transactions that a new “gifting” feature on the top NFT marketplace OpenSea is causing.

Now, while making a purchase on OpenSea, NFTs—individual blockchain tokens that represent ownership of digital goods—can be transmitted immediately to any wallet. As a result, traders are able to use Ethereum to purchase NFTs from one wallet while simultaneously delivering them to another.

The new functionality introduced on Friday creates the impression that the gift receiver bought the NFT for themselves on some third-party wallet trackers—trading programs that monitor NFT purchases made by influencers and celebrities.

According to a tweet from the fictitious founder of Metaverse HQ, “JakeandBake,” the feature is apparently already being “exploited” to make it appear as though influential people and public figures like Gary Vaynerchuk are purchasing NFTs from various collections.

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