• Platypus Finance, a DeFi protocol for stablecoins, announced that it will repay at least 63% of user funds after suffering a $9 million hack.
• The exploit was identified by the protocol working with crypto exchange Binance and law enforcement was contacted to file a complaint in France.
• A total of $2.4 million was recovered with the help of blockchain security firm BlockSec and Tether froze $1.5 million worth of stolen USDT.

Platypus Finance Suffers $9M Hack

Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, recently suffered a major hack where $9 million was drained from the protocol last week due to an exploit in the platform’s solvency check mechanism.

Platform Repays Users 63% Of Stolen Funds

The Avalanche-based protocol worked with crypto exchange Binance to identify the exploiter responsible for last week’s attack and has since announced that it will repay at least 63% of funds to users.

Recovery Efforts Lead To Partial Recovery Of Stolen Funds

In addition to filing a complaint in France and contacting law enforcement, Platypus Finance managed to recover some assets through various efforts. Blockchain security firm BlockSec helped recover $2.4 million worth of USDC stablecoins while Tether froze another $1.5 million worth of stolen USDT assets. Meanwhile, some $287,000 worth of assets were mistakenly transferred to lending protocol Aave and Platypus has submitted a proposal asking them for release those assets back into their control.

Crypto Industry Facing Rampant Problem With Hackers

The exploit of Platypus Finance is yet another example of crypto’s rampant problem with hackers as similar incidents have happened before on other protocols such as Yearn Finance and Harvest Finance not too long ago resulting in millions being lost from users‘ wallets without any sign or trace left behind from the attackers themselves. These events serve as harsh reminders that our industry still has much work to do when it comes to ensuring its protocols are secure enough against malicious actors who seek out potential vulnerabilities within smart contracts or liquidity pools in order to get their hands on withdrawals amounting up into millions quickly without much effort or risk involved on their part aside from what is needed initially for setup purposes prior executing any attack itself..

Conclusion: Protocols Must Remain Vigilant To Protect User Funds

It is clear that more must be done when it comes improving upon existing protocols’ security measures as well as introducing new ones altogether if we want these types incidents from occurring again in future times which could result potentially worse outcomes than what we have seen so far this time around where most user funds were fortunately able reclaim back due diligence taken place afterwards by affected parties such as exchanges and blockchain firms alike used track down offending individual(s).

• GBBC Digital Finance has become an affiliate member of the International Organization of Securities Commissions (IOSCO)
• GBBC Digital Finance’s goal is to engage regulators in order to inform policy development by major regulatory bodies
• IOSCO’s fintech task force is prioritizing work related to crypto assets and decentralized finance (DeFi)

GBBC Digital Finance Joins IOSCO as Affiliate Member

GBBC Digital Finance, a digital asset industry association, has become an affiliate member of the International Organization of Securities Commissions (IOSCO), an association of securities regulators from around the world. As an associate for the digital asset industry, GBBC Digital Finance’s goal is to engage regulators to inform how policy will be developed by the world’s major regulatory bodies.

Purpose for Joining IOSCO

Affiliate members of IOSCO share experiences with the aim of enhancing cooperation between members and thereby providing input into standard-setting for securities regulation globally. By joining this organization, GBBC hopes to provide input and shape global policy around digital assets.

IOSCO’s Focus on Cryptocurrency

IOSCO, regarded as the standard setter for securities regulation, has been increasing its focus on cryptocurrency in recent months. Its fintech task force has prioritized work related to crypto assets and decentralized finance (DeFi). Two working groups headed by U.S. SEC and U.K. FCA are set to publish reports with recommendations for crypto assets and DeFi by the end of 2021.

GBBC Merger

Prior to its merger with Global Blockchain Business Council (an industry association for blockchain technology), GBBC was known as Global Digital Finance.

Why This Matters

By becoming an affiliate member of IOSCO, GBBC Digital Finance will have more influence over how policy surrounding digital assets is shaped on a global scale. This could potentially result in more clarity regarding regulations surrounding cryptocurrency worldwide.

• Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter.
• The company also said its board had authorized the company to pursue purchasing all or most of the 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022, and canceled nearly $500 million of its share-based compensation.
• Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share.

Robinhood’s Crypto Revenue Declined 24%

Online trading brokerage Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter. This was part of overall earnings and revenues estimates for the quarter that were missed by Robinhood.

The Company Authorized Purchase Of Shares

The company also said its board had authorized it to purchase all or most of 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022. Additionally, nearly $500 million worth of share-based compensation was canceled by Robinhood.

Rollout Of Polygon-Based Web3 Wallet

Robinhood noted that its Robinhood crypto wallet was rolled out to more than one million waitlisted users after a beta version of its Polygon-based Web3 wallet was released in September. This rollout allowed users to access Ethereum DeFi protocols without having to leave their app interface.

Q4 Adjusted Loss Ahead Of Estimate

Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share according to FactSet, on revenue below analyst expectations at $380 million versus an estimated $396 million.

Shares Up 30% Year To Date

Shares were up about 3% to $10.80 after hours Wednesday and are up about 30% year to date but down 21% over last year despite missing both earnings and revenues estimates for Q4

Crypto Markets Today

• Bitcoin dips below $23K ahead of the Fed’s meeting.
• Equities close lower as traders await the Federal Reserve’s decision on interest rates Wednesday.
• LayerZero co-founder denies accusations from a competitor that it covered up a critical „backdoor“ vulnerability in its code.

Bitcoin Price Analysis

The largest cryptocurrency by market value, Bitcoin (BTC), was recently trading at about $22,700, down more than 4% over the past 24 hours and well off its high Sunday near $24,000. Bitcoin-related funds dominated last week’s digital-asset investment products inflows, accounting for almost all of the $117 million coming in.

Equities Market Performance

Equities closed lower as traders awaited the Federal Reserve’s decision on interest rates Wednesday and studied a flurry of fourth-quarter earnings reports from big techs including Apple and Meta. The tech-heavy Nasdaq Composite closed down 1.9%, while the S&P 500 and Dow Jones Industrial Average (DJIA) fell 1.3% and 0.7%, respectively.

Critical „Backdoor“ Vulnerability

A co-founder of LayerZero, which provides services to help blockchains bridge digital assets between each other, is denying accusations from a competitor that it covered up the existence of a critical „backdoor“ vulnerability in its code. James Prestwich, founder of the cross-chain bridging service Nomad, alleged in a blog post that LayerZero can bypass security controls to pass data between blockchains without anyone’s permission.

Conclusion

As traders wait for direction on interest rates from Wednesday’s Federal Reserve meeting and scrutinize major tech companies‘ fourth quarter earnings reports, crypto markets remain volatile with BTC dipping below $23K ahead of the announcement while equities markets close lower overall. Furthermore, LayerZero faces allegations that it has been concealing an undisclosed capability which can compromise system function without users‘ knowledge or consent—accusations which have been denied by one of its founders thus far.

• LayerZero, a blockchain bridge services provider, has been accused of having a backdoor vulnerability in its code.
• The allegations come from James Prestwich, the founder of Nomad, a competitor to LayerZero.
• Bryan Pellegrino, co-founder of LayerZero denies the accusations and suggests that they may be motivated by an upcoming Uniswap governance vote to pick a bridge provider.

Allegations on LayerZero’s Code

The head of Nomad, a LayerZero competitor, recently made allegations that the platform kept „backdoor“ secret which would enable it to bypass security controls in order to pass data between blockchains without anyone’s permission. According to the accuser James Prestwich, this vulnerability could potentially compromise the function of the system.

LayerZero Denies Allegations

Bryan Pellegrino, co-founder of LayerZero denied these accusations and suggested that Prestwich’s motives might be tied to an upcoming Uniswap governance vote to pick a bridge provider. Pellegrino stated that all applications have the ability to set their own security properties which will prevent any kind of unauthorized access or privilege for LayerZero. He also added that describing anything as a critical security vulnerability is insane.

Uniswap Governance Vote

The allegations against LayerZero come just before Uniswap votes on whether to partner with them or not. This vote will decide which bridging service provider will be used by Uniswap and both Nomad and Wormhole are competitors for this position as well.

Security Practices Openly Discussed

Pellegrino further explained that they have openly discussed their security practices with developers who can set parameters barring LayerZero from special access privileges if they choose too.

Conclusion

At this time there is no clear indication whether or not Uniswap will partner with Layer Zero but both sides are asserting their stance on this matter clearly and it is up to Uniswap now to make their decision keeping in mind all possible factors involved in this situation.

• Bitcoin (BTC) held above $23,000 on Friday as traders awaited the Federal Open Market Committee decision on interest rates.
• BTC surpassed $23,000 for the first time since mid-2022 about a week ago and has managed to stay in that territory.
• Traditional markets were also slightly up, with the S&P 500 Index up about 0.3%.

Cryptocurrency traders around the world were on high alert on Friday as they eyed the Federal Open Market Committee’s (FOMC) decision on interest rates, which could have a major impact on the markets. The largest cryptocurrency by market capitalization, Bitcoin (BTC), held steady above $23,000 as investors waited for the FOMC’s decision.

BTC had a roaring start to the year, with its price increasing by more than 40% since New Year’s Eve. It surpassed $23,000 for the first time since mid-2022 about a week ago and has managed to stay in that territory. Meanwhile, traditional markets were also slightly up, with the S&P 500 Index up about 0.3%.

Analysts have been cautiously optimistic about the prospects of Bitcoin, with Edward Moya, senior market analyst at foreign exchange Oanda, noting that “Bitcoin should still consolidate leading up to the Federal Open Market Committee (FOMC) decision, with risks to the downside if the Fed sticks to its hawkish mantra.”

The decision by the FOMC could have a major impact on the markets, as it will influence the direction of global interest rates. If the central bank decides to keep interest rates low, it could result in more investors looking to Bitcoin and other cryptocurrencies as a hedge against inflation.

The crypto rally has been fueled by a variety of factors, including an influx of institutional investors, an increase in mainstream adoption and a growing demand for digital assets. Some experts believe that the crypto market is in a bull market and that further gains are likely in the near term.

The FOMC’s decision will be closely watched by traders and investors around the world, as it could have a major impact on the markets. Regardless of the outcome, it is clear that Bitcoin is here to stay and that it is likely to remain a major player in the world of finance for the foreseeable future.

• Timothy Stranex, co-founder and chief technology officer (CTO) of cryptocurrency exchange Luno, departed in December to pursue personal projects.
• He was replaced as CTO by Simon Ince, who joined Luno just under two years ago as its vice president of engineering.
• Luno, which is a subsidiary of Digital Currency Group (also the parent company of CoinDesk), has over 10 million customers worldwide and offices in London, Singapore, Cape Town, Johannesburg, Lagos and Sydney.

Cryptocurrency exchange platform Luno has seen some changes at the top recently, with the departure of co-founder and chief technology officer (CTO) Timothy Stranex in December. Stranex had founded the company nearly 10 years ago alongside Carel van Wyk, Pieter Heyns and current CEO Marcus Swanepoel, and his departure has seen him replaced as CTO by Simon Ince, who joined the company just under two years ago as its vice president of engineering.

Luno, which is owned by Digital Currency Group (also the parent company of CoinDesk), has been operating for over 10 years, and has grown to become a global company, with over 10 million customers worldwide and offices in London, Singapore, Cape Town, Johannesburg, Lagos and Sydney. The company offers a secure platform for users to buy, sell, store and trade cryptocurrencies, as well as providing access to a range of educational resources and tools to assist users in understanding the cryptocurrency markets.

In addition to its exchange platform, Luno has also launched a range of initiatives to support the growth of the cryptocurrency sector, including the recently launched ‚Luno Ventures‘, which is an initiative to provide financial and technical assistance to startups in the space, as well as its ‚Luno Academy‘ program, which provides educational resources and support to those interested in learning more about blockchain technology, cryptocurrencies and trading.

The company also recently announced a new partnership with Visa, which will enable its users to buy, sell, store and spend cryptocurrencies directly from their Luno wallets. This new partnership marks a major milestone for the company, as it demonstrates its commitment to bring the benefits of cryptocurrencies to more people around the world.

All in all, Luno has established itself as one of the leading cryptocurrency exchanges, with its strong commitment to innovation, safety and security, and customer service. With the departure of Timothy Stranex and the appointment of Simon Ince as CTO, the company looks set to continue to grow and expand its services and offerings in the months and years ahead.

• Gemini, the crypto exchange owned by the Winklevoss twins, has terminated its crypto yield product, Gemini Earn, which had been in operation for nearly two years.
• This move requires Genesis Global Trading, Gemini’s partner in the program, to return all assets locked up in the program.
• The termination of the master loan agreement between Gemini’s customers and Genesis has escalated the dispute between the two companies.

Gemini, the crypto exchange founded by the Winklevoss twins, has recently ramped up its battle with Genesis Global Trading, a subsidiary of Digital Currency Group, with the termination of its crypto yield product, Gemini Earn. The move, which is set to take effect immediately, requires Genesis to return all assets that are currently locked up in the program.

Gemini informed its customers of the termination through an email sent out on Tuesday. Within the email, the company stated that this would officially terminate the Earn Program, and that any existing redemption requests would not be impacted. The email also stipulated that Genesis should fulfill any remaining requests as soon as possible.

In response to Gemini’s decision, Genesis released a statement expressing its disappointment. The statement noted that the whole process is complex and would take a bit of time to fully execute. However, the company did reiterate its commitment to ensuring a smooth transition for all of its customers and partners.

The termination of the master loan agreement between Gemini’s customers and Genesis marks a new chapter in the dispute between the two companies, which had been working together on the crypto lending product since 2019. The program had been advertised as a way for smaller investors to earn yield on their crypto assets, and had been operating successfully for nearly two years.

The exact reason for the sudden termination of the program remains unclear. However, it is likely that the move was spurred by the increasing competition in the industry, as more and more exchanges attempt to offer similar services. With the termination of Gemini Earn, the Winklevoss twins are now focusing their efforts on other areas of their business, such as custody and trading, in order to remain competitive in the space.

It remains to be seen how this decision will impact the ongoing relationship between Gemini and Genesis. Nevertheless, both companies are committed to ensuring a smooth transition and protecting the interests of their customers.

• Cryptocurrency exchange Kraken announced that it will deregister from the Financial Services Agency and exit Japan as of January 31.
• Bitcoin miner Argo Blockchain agreed to sell its Helios mining facility in Texas to Galaxy Digital for $65 million and will receive a $35 million loan from Mike Novogratz’s crypto-focused financial-services firm.
• Former FTX CEO Sam Bankman-Fried borrowed hundreds of millions of dollars from Alameda Research, the trading firm he owned, to purchase his stake in trading app Robinhood Markets.

Cryptocurrency exchanges have been experiencing a lot of changes and adaptations in recent months, with Kraken being the latest one to make major adjustments. Kraken, a large global cryptocurrency exchange, recently announced plans to deregister from the Financial Services Agency (FSA) and exit Japan as of January 31. The decision was made due to a combination of “current market conditions in Japan in combination with a weak crypto market globally” according to a blog post from the exchange. All Kraken users in Japan have until the end of the month to withdraw their fiat and crypto holdings, either transferring their crypto to another wallet or wiring Japanese yen to a local bank.

Another major player in the cryptocurrency industry, bitcoin miner Argo Blockchain, also made some important changes recently. In order to avoid filing for bankruptcy protection, Argo Blockchain agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million. Argo will also receive a new $35 million loan from financier Mike Novogratz’s crypto-focused financial-services firm. This loan will be secured by Argo’s mining equipment. The transaction will help Argo bolster its balance sheet and avoid bankruptcy after a deal for $27 million in funding fell through in October.

Finally, former FTX CEO Sam Bankman-Fried recently made headlines for his decision to borrow hundreds of millions of dollars from Alameda Research, the trading firm he owned, to purchase his stake in trading app Robinhood Markets. In an affidavit provided to a Caribbean court before his arrest, Bankman-Fried said he and FTX co-founder Gary Wang had used the borrowed funds to purchase equity in Robinhood and that he had personally borrowed $200 million from Alameda for the purchase.

These three major moves in the cryptocurrency industry highlight the ever-changing and unpredictable nature of the market. As more and more companies enter the space and more investors look to capitalize on the potential of digital assets, it’s clear that the industry is in a state of constant flux. It remains to be seen what other changes and developments will arise in the coming months.

• Ethereum completed its radical shift to a more energy-friendly system for powering its network in 2022.
• The Merge, the blockchain’s massive upgrade to a more energy-efficient system, cut the network’s energy consumption by around 99%.
• Concerns around censorship, record-shattering hacks, and the chain’s high transaction costs and slow network speeds were also prominent themes in Ethereum’s year.

In 2022, Ethereum made a radical shift to a new, vastly more energy-friendly system for powering its network. This monumental upgrade, known as the Merge, promised to reduce the network’s energy consumption by around 99% and marked the start of a new era for the blockchain.

However, despite the Merge’s successes, Ethereum’s year was also marked with problems. Censorship, record-shattering hacks, and the chain’s high transaction costs and slow network speeds were all prominent themes in Ethereum’s year, raising questions about whether the blockchain can ever truly become a global computer and decentralized financial system.

The Merge was Ethereum’s massive, years-in-the-making upgrade to a more energy-efficient system for processing transactions. The switch to proof-of-stake from proof-of-work was expected to drastically reduce the network’s energy footprint and put Ethereum on a path to becoming a deflationary asset.

However, the Merge also raised concerns about the blockchain becoming too centralized. Additionally, the event never spurred a long-hoped-for bump to the price of ether (ETH), the chain’s native currency, and the price of ETH has sunk more than 20% since the Merge.

Ethereum’s year was further marred by several other issues. Censorship concerns, record-shattering hacks, and the chain’s high transaction costs and slow network speeds all posed major challenges to the blockchain’s ambitions.

The censorship concerns stemmed from the blockchain’s new power structure, where validators „stake“ ether (ETH) with the chain for the chance to write transactions to its ledger. Meanwhile, the record-shattering hacks on Ethereum-linked infrastructure highlighted the blockchain’s susceptibility to malicious actors. In terms of transaction costs and network speeds, the Merge was unable to address these problems, leaving Ethereum still searching for solutions.

Overall, Ethereum’s 2022 was a rollercoaster of successes and challenges. Despite its progress toward becoming a global computer and decentralized financial system, the blockchain still faces significant issues that need to be addressed before it can reach its full potential.