Crypto News Roundup: $55M Phishing Heist, Kamala Harris Crypto Stance, Aave V3 Launch

August 23, 2024

Crypto World

Maciej Zerelik

Stay updated with StealthEX and CryptoDaily! This week, we’re presenting the most significant happenings in the cryptocurrency world. Curious about the current trends? Our digest offers clear insights, fresh perspectives, and the newest developments in the crypto space. Keep yourself informed with our concise coverage, ensuring you’re always in the loop on what’s going on in the crypto scene.

Phishing Attack Targets Crypto Whale, Steals $55 Million in Dai Tokens

A recent phishing attack has led to the theft of $55 million worth of Dai tokens from a prominent crypto whale.

The attack was reported by blockchain analytics firm Lookonchain and cybersecurity experts at CertiK. The attacker, known as “Fake_Phishing187019,” exploited weaknesses in the victim’s digital wallet. This wallet, similar to a traditional bank account, was compromised due to insufficient security.

The breach occurred on August 20, 2024. The attacker tricked the victim into signing a deceptive transaction. This transaction transferred ownership of a digital asset, DSProxy #166,776, to a phishing address. Once the attacker had control, they swiftly stole the Dai tokens.

The stolen funds were laundered through complex transactions. The hacker first transferred $36 million to an unknown address. Then, $17.5 million was moved through the CoW protocol. To further hide their tracks, the hacker exchanged the Dai tokens for Ethereum and Bitcoin via Uniswap V3.

CertiK identified the phishing technique as an “Inferno Drainer” exploit. This method involves malicious smart contracts that appear legitimate but trick users into granting access to their assets.

Kamala Harris May Support Pro-Crypto Policies, Adviser Hints

A senior adviser to Kamala Harris’ campaign has suggested that the Vice President might support policies that encourage growth in the cryptocurrency industry. However, the specifics of these policies are not yet clear.

The adviser, Brian Nelson, emphasized Harris’ potential backing for policies that help emerging technologies like cryptocurrencies thrive. He pointed out the need for clear “rules of the road” to guide the industry. This comes in the wake of high-profile incidents, such as the collapse of FTX, highlighting the importance of a regulated environment that still allows innovation.

Though Harris has not publicly shared her views on cryptocurrency, her campaign team has been in discussions with key industry leaders. Companies like Coinbase, Circle, and Ripple Labs have been part of these talks, signaling a possible shift in her approach toward the sector.

Support for Harris within the crypto community is growing. Notable figures, including J.P. Thieriot, former CEO of Uphold, have shown their backing. A virtual town hall on August 14 saw active participation from crypto advocates, where discussions touched on how Harris might support the industry if she becomes president. Senate Majority Leader Chuck Schumer also hinted at potential pro-crypto legislation by 2025.

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Aave Launches V3 on Era Mainnet Powered by ZKsync

Aave, a leading DeFi protocol, has launched its V3 version on the Era Mainnet, utilizing ZKsync technology. This move is expected to bring enhanced liquidity and yield generation to the Elastic Chain ecosystem.

ZKsync technology offers efficient and secure transactions. Aave V3 users will benefit from low-cost transactions that maintain security through Ethereum’s cryptographic validity proofs. The integration also includes Chainlink’s reliable price feeds, ensuring accurate market data.

Stani Kulechov, Founder and CEO of Aave Labs, highlighted the significance of this launch. He stated that the combination of ZK-proofs and the Elastic Chain ecosystem will provide unprecedented scalability, privacy, and security. This could potentially expand the DeFi user base and attract new institutional use cases.

Alex Gluchowski, Co-Inventor of ZKsync, emphasized Aave’s role in the crypto industry. He noted that ZKsync’s Elastic Chain aims to become a secure access point for both retail and institutional users. The deployment of Aave on Era will allow a broader audience to fully utilize ZKsync’s advanced scaling capabilities.

Johann Eid, Chief Business Officer at Chainlink Labs, expressed enthusiasm for the collaboration. He praised the impact both Aave and ZKsync have had on the DeFi and blockchain sectors. Eid emphasized that the deployment of Aave V3 on Era Mainnet marks a significant step forward in DeFi scalability and could increase institutional interest in on-chain finance.

With the integration of Aave, ZKsync is expected to attract more users, enhance the DeFi experience, and solidify Aave’s position as a leading protocol within the growing Elastic Chain ecosystem.

SEC Rejects Cboe’s Solana ETF Filings Amid Security Concerns

The U.S. Securities and Exchange Commission (SEC) has rejected Cboe BZX’s filings for two proposed Solana Exchange-Traded Funds (ETFs). These 19b-4 filings, submitted on July 8, have been withdrawn from Cboe’s website following the SEC’s decision.

The SEC’s rejection stems from its ongoing concerns about Solana’s classification as a security. This viewpoint has consistently been a part of the Commission’s legal stance in various court cases. As a result, the Solana ETF proposals have been stalled, highlighting the challenges cryptocurrency-based financial products face in gaining approval in the U.S.

The 19b-4 filings are essential for advancing ETF proposals. These documents trigger the SEC’s formal review process once posted in the Federal Register. However, the SEC’s rejection in this case meant that the Solana ETF proposals did not progress to this stage.

ETF journalist Eric Balchunas noted that the Solana ETF filings did not move beyond the preliminary phases. The SEC’s lack of acknowledgment led to the withdrawal of the filings by the exchanges. Despite this setback, the S-1 registration statements from the issuers remain active, though they do not carry the same regulatory deadlines as the 19b-4 filings.

Marathon Digital Acquires 4,144 BTC, Increasing Reserves to 25,000 BTC

Marathon Digital Holdings has completed the purchase of 4,144 Bitcoin (BTC) for $249 million. The acquisition was funded through the recent sale of 2.125% convertible senior notes, due in 2031.

The company secured approximately $292.5 million from the sale of these notes. With the proceeds, Marathon Digital purchased Bitcoin at an average price of $59,000 per BTC, boosting its total BTC reserves to 25,000 BTC.

Marathon Digital’s CEO, Fred Thiel, has emphasized the company’s commitment to a HODL strategy. This latest purchase aligns with their ongoing plan to accumulate and hold Bitcoin as a strategic asset.

The senior notes offer an annual interest rate of 2.125% and can be converted into cash or Marathon Digital (MARA) stock. The company also retains the option to redeem the notes for cash under specific conditions.

Marathon Digital intends to use the remaining funds from the sale of the notes to acquire more Bitcoin and for general corporate purposes. These may include strategic acquisitions, expansion of assets, and debt repayment.

A spokesperson from Marathon Digital stated that Bitcoin is regarded as a premier strategic treasury asset. The company continues to implement a multifaceted strategy for acquiring BTC, with the latest purchase adding to their growing reserves.

MetaMask Launches Pilot Debit Card for Direct Crypto Payments

MetaMask has introduced a pilot for its new debit card, allowing users to make direct cryptocurrency payments from their MetaMask wallets wherever Mastercard is accepted. This innovative card marks a significant step in making crypto more accessible for everyday spending.

The MetaMask Card, developed in partnership with Mastercard and Baanx, enables users to bypass traditional banking steps. Instead of converting crypto to fiat currency, users can now spend their digital assets directly. This development simplifies the process of using cryptocurrency for real-world transactions, making it easier for crypto holders to use their assets for purchases.

Lorenzo Santos, Senior Product Manager at Consensys, highlighted the importance of this launch. He noted that the MetaMask Card reduces the friction between blockchain technology and real-world commerce, offering a seamless experience for users.

The card is supported by Mastercard’s global merchant network, ensuring secure and efficient transactions. It operates on the Linea network, secured by Ethereum, and integrates with MetaMask’s robust security features. Simon Jones, Baanx’s Chief Commercial Officer, expressed excitement about the collaboration, emphasizing the card’s role in empowering users to take control of their finances.

Currently, the MetaMask Card is available to a select group of users in the European Union and the United Kingdom. These users can set up their accounts through the Crypto Life platform, which supports multiple cryptocurrencies like USDC, USDT, and WETH. The card also integrates with Apple Pay and Google Pay, offering added convenience for digital payments.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.