Solana Liquid Staking Grows, UK Crypto Bill, IndoDax Hack

September 13, 2024

Crypto World

Maciej Zerelik

Get the latest news from StealthEX and CryptoDaily! This week, we’re sharing the top cryptocurrency stories. Want to know what’s trending? Our roundup gives simple insights, new ideas, and all the recent updates in the crypto world. Stay informed with our quick and clear coverage, so you never miss out on what’s happening in crypto!

Solana’s Liquid Staking Gains Momentum, Bybit Report Reveals

A new report from Bybit, the second-largest cryptocurrency exchange by trading volume, highlights significant developments within the Solana blockchain. Solana is gaining attention due to its innovative liquid staking model, which could play a major role in expanding its ecosystem. The report focuses on the rise of liquid staking, especially on Solana’s exchange-based tokens, like Bybit’s bbSOL.

In 2024, Solana has become a hotspot for memecoins and grassroots projects in the DeFi world. Although the platform has seen growth, its market cap and overall reach are still developing. Bybit’s analysis suggests that liquid staking will be key in helping Solana attract more users. The introduction of exchange-backed Liquid Sstaking Tokens (LST) could serve as a crucial link between new users and the blockchain’s decentralized finance opportunities.

Solana’s liquid staking model offers users better flexibility and access compared to traditional staking methods. Currently, the liquid staking ratio on Solana stands at 6.5%, leaving plenty of room for growth. Projections estimate the market could reach between $6 billion and $10 billion in the near future. The report also points out that memecoins may drive further interest in liquid staking, offering new opportunities for investors.

UK Introduces Bill to Classify Digital Assets as Personal Property

On September 11, 2024, the UK government presented the Property (Digital Assets etc) Bill to Parliament, marking a major step in how digital assets will be treated legally. The bill aims to categorise digital holdings like cryptocurrencies, NFTs, and carbon credits as personal property. This new classification will offer legal protections and guidelines for resolving disputes over ownership.

The bill seeks to safeguard both individual and corporate holders of digital assets from scams and fraud. It also provides clear legal recourse for asset owners in case of interference with their holdings. This move is part of a broader strategy to keep the UK at the forefront of the global crypto market, ensuring it stays competitive.

Previously, digital assets were in a legal grey area under British law, with little protection for owners if their assets were misappropriated. The new bill fills that gap, offering much-needed clarity and security for digital asset ownership in England and Wales.

Justice Minister Heidi Alexander emphasized the importance of updating the law to match technological advances, ensuring that the UK remains a leader in the crypto space while bringing resolution to complex property cases involving digital assets.

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IndoDax Hacked: $20.5 Million in Digital Assets Stolen

IndoDax, one of Indonesia’s largest cryptocurrency exchanges, has been hacked, leading to the loss of over $20.5 million in digital assets across several blockchain networks. The breach was first identified by Cyvers, a security firm, which detected unusual activity on the platform.

Yosi Hammer from Cyvers confirmed that the attack targeted IndoDax’s hot wallets. The firm’s monitoring systems flagged 160 critical alerts, starting with a transfer of 660 ETH. The total stolen amount spans multiple blockchain networks, causing significant financial damage.

Security firms PeckShield and CertiK also confirmed the hack. PeckShield reported an outflow of $16 million worth of assets, spread across Ethereum, Polygon, and Optimism networks. The stolen funds included 5204 ETH, 6.8 million POL on Polygon, and 380 ETH on Optimism. CertiK explained that hackers accessed IndoDax’s hot wallets, which are more vulnerable than cold wallets due to their online connection.

IndoDax acknowledged the breach in a statement on X.com, reassuring users that their balances remain safe. Although the stolen amount is significant, IndoDax’s treasury still holds over $408 million in crypto, making the theft a small portion of their overall assets. The exchange has temporarily suspended its platform for maintenance to address the breach.

Ethereum Name Service (ENS) Integrates with PayPal and Venmo for Crypto Transfers

Ethereum Name Service (ENS) has partnered with PayPal and Venmo, allowing users to transfer cryptocurrency using ENS names. Announced on September 10, this integration by ENS Labs simplifies the process for over 270 million U.S. users, making it easier to send digital assets without dealing with complicated blockchain addresses.

This collaboration marks a significant step toward mainstream crypto adoption. ENS allows users to replace lengthy wallet addresses with simple, user-friendly names like “xyz.eth,” reducing the risk of errors during transactions. With the integration, Venmo and PayPal users can enter a recipient’s ENS name, and the platforms will automatically identify the correct wallet address for the transaction.

Khori Whittaker, executive director of ENS Labs, highlighted the importance of this development, stating it brings ENS technology to millions of people. The aim is to make managing digital assets as easy and intuitive as possible. 

This partnership also aligns with PayPal’s growing presence in the blockchain space. PayPal’s stablecoin, PayPal USD (PYUSD), recently hit a market cap of $1 billion, and the company continues expanding its blockchain initiatives, including recent collaborations to integrate PYUSD on the Solana network.

FTX Settles $600 Million Robinhood Shares Dispute with Emergent Technologies

Bankrupt crypto exchange FTX has reached a $14 million settlement with Emergent Technologies, resolving a key dispute over $600 million in Robinhood shares. The settlement was detailed in a motion filed by FTX CEO John Ray III in Delaware Bankruptcy Court on September 6, marking significant progress in FTX’s ongoing bankruptcy proceedings.

Emergent Technologies, co-founded by FTX’s former CEO Sam Bankman-Fried, had claimed ownership of 55 million Robinhood shares along with associated cash. As part of the settlement, FTX will pay Emergent $14 million for administrative expenses, while Emergent will give up its claims to the shares and cash.

The Robinhood shares have been a focal point since FTX’s collapse in November 2022. Emergent originally acquired them in May 2022 through a deal with Bankman-Fried and Alameda Research. After FTX filed for bankruptcy, multiple parties, including FTX, Emergent, and BlockFi, contested ownership. In January 2023, the U.S. Department of Justice seized the shares. Robinhood later repurchased them for $606 million, settling the ownership issue.

This settlement helps FTX simplify its bankruptcy process and work toward repaying creditors. It also resolves Emergent’s bankruptcy case in Antigua and reduces ongoing legal battles, ensuring smoother proceedings for both companies.

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.