StealthEX & CryptoDaily: Ethereum Bug, Nexo Lawsuit, and Tesla’s Bitcoin Stance

January 26, 2024

Crypto World

Maciej Zerelik

Check out our weekly crypto update from StealthEX and CryptoDaily! We aim to give you a quick, easy-to-understand rundown of the big crypto news and trends. Stay in the loop with the latest happenings in the crypto world. Want to know the top stories of the week? Let’s get started!

Ethereum’s Client Diversity Issue: Bug Impacts 8% of Validators

A critical bug in Ethereum’s Nethermind client software recently disrupted 8% of its validators, spotlighting the network’s client diversity problem. Most Ethereum validators use Geth software, dominating 78.78% of the network. This over-reliance poses a risk, as a major bug in Geth could have catastrophic effects.

In response, major operators like Coinbase are exploring alternative clients. This move is crucial for network security, aiming to reduce reliance on a single software client. The incident has sparked a broader discussion in the Ethereum community about the importance of software diversity to prevent similar vulnerabilities in the future.

Nexo Seeks $3 Billion in Damages from Bulgaria

Crypto lender Nexo AG is suing the Republic of Bulgaria for $3 billion, citing damages and lost opportunities due to Bulgaria’s wrongful investigations into the company and its executives. The lawsuit, filed by Nexo AG’s Swiss unit, claims that Bulgaria’s actions, including unjustified and oppressive criminal investigations, have significantly damaged Nexo’s reputation and shareholder value.

These investigations, which involved allegations of money laundering, computer fraud, and tax offenses, were later dismissed for lack of evidence. Despite being cleared of wrongdoing, Nexo argues that the investigation harmed its brand and investments in Bulgaria, leading to missed business opportunities and revenue losses. This includes disrupted plans for an IPO and a strategic alliance with a major European football club.

Nexo’s legal team expresses confidence in the strength of their case, emphasizing the unjust impact of the Bulgarian authorities’ actions on the company’s growth and opportunities.

Choose StealthEX for Exchange and Buy Crypto

• User-Friendly — Simple and minimalistic interface for everyone.
• Fast and Private — Instant non-custodial cryptocurrency exchanges.
• Buy crypto with Credit Card.
• 1400+ coins and tokens are available for limitless, quick and easy exchanges.
• NO-KYC crypto exchanges — Buy cryptocurrency up to $700 without KYC!
• StealthEX crypto exchange app — Process crypto swaps at the best rates wherever you are.
• 24/7 Customer Support.

Earn from Each Exchange by Joining StealthEX Affiliate Program.
Become a partner right now and use affiliate tools:

• Public API — Earn from your wallet, aggregator, or exchange terminal.
• Referral Links — Recommend StealthEX to your audience.
• Exchange Widget — Built crypto exchange widget on any page of your website.
• Button — A perfect choice for traffic monetization.
• Banner — Track conversion and stats right in the personal cabinet.

Canadian Judge Declares Trudeau’s Emergencies Act Use Unconstitutional

A Canadian judge has ruled that Prime Minister Justin Trudeau’s application of the Emergencies Act during the 2022 truckers’ protest was unconstitutional. The Federal Court of Canada, led by Justice Richard Mosley, found that the act’s use to freeze truck drivers’ Bitcoin crowdfunding efforts violated the country’s Charter of Rights and Freedoms.

The court’s decision comes after legal challenges from the Canadian Civil Liberties Association and the Canadian Constitution Foundation. They argued that the government’s freezing of funds, including cryptocurrencies, during the “Freedom Convoy 2022” protests was unnecessary and a breach of constitutional rights.

The protests, which occurred in February 2022, were against mandatory COVID-19 vaccinations and disrupted the US-Canada trade route. The government’s stance was that the Emergencies Act was necessary to manage the situation. However, the court deemed this reasoning unreasonable and unconstitutional.

Despite the ruling, Finance Minister Chrystia Freeland announced the government’s intention to appeal, maintaining their belief in the necessity of their actions during the protests.

Decline in Crypto Funds Stolen by North Korean Hackers

A report by Chainalysis indicates a significant drop in the amount of funds stolen by North Korean hackers, despite an increase in hacking incidents. In 2023, the total stolen funds fell by 50% to $1.7 billion, down from $3.7 billion in 2022. This decrease occurred even as the number of individual hacking incidents rose from 219 to 231.

The report attributes this decline to a reduction in DeFi hacking incidents, which were a major contributor to the surge in stolen crypto in previous years. In 2023, only $1.1 billion was stolen from DeFi protocols, marking a 63% decrease from the previous year.

North Korea-linked hacks have been a growing concern, with groups like Kimsuky and Lazarus Group using sophisticated tactics to acquire crypto assets. These hacks are part of a larger trend, with North Korea-affiliated hackers stealing millions in crypto to fund the country’s nuclear weapons program.

Tesla Maintains Its Bitcoin Holdings in Q4 2023

Tesla, a leader in automotive and clean energy, disclosed in its annual earnings report that it did not sell any of its Bitcoin holdings in the fourth quarter of 2023. The company also refrained from purchasing additional Bitcoin, marking a period of complete inactivity in its crypto investments.

As of the report, Tesla’s Bitcoin stash is valued at $184 million, making it the fourth-largest public company Bitcoin holder. This follows Tesla’s initial Bitcoin investment of $1.5 billion in February 2021, where it bought around 43,000 Bitcoins. Despite initially accepting Bitcoin as payment, Tesla later reversed this decision and reduced its holdings, selling 4,320 BTC in 2021 and 75% of its remaining stake at a loss in the following year.

In the third quarter of 2023, Tesla also showed no movement in its Bitcoin holdings, maintaining this stance for six consecutive quarters. The company’s last significant Bitcoin transaction was the sale of 30,000 BTC in Q2 2022, which generated $936 million but resulted in a loss from its initial investment.

Tesla’s fourth-quarter revenue was reported at $25.17 billion, a 3% increase year-over-year, though it fell short of the $25.62 billion target. The company’s automotive revenue reached $21.56 billion, a 1% increase from the previous year.

Meta Under Scrutiny: US Lawmakers Demand Crypto Clarity

Democratic Representative Maxine Waters, leading a group of US lawmakers, is turning up the heat on Meta’s top brass to disclose their cryptocurrency and blockchain strategies. In a bold move, Waters, a prominent figure on the House Financial Services Committee, has sent a letter to Meta’s executives, pressing for clear answers about their crypto-related plans. The lawmakers are particularly interested in whether Meta is considering a crypto exchange and how it might integrate with platforms like Facebook and Instagram.

Meta’s recent trademark applications in the digital assets domain have raised eyebrows, suggesting a deeper involvement in crypto than previously acknowledged. Waters pointed out this contradiction in her letter to Meta’s CEO Mark Zuckerberg and COO Javier Olivan. The applications cover a wide range of crypto services, including trading, payments, and wallets, and have already met initial registration requirements.

Waters is not just seeking answers; she’s demanding them. Her letter poses critical questions about Meta’s response to the trademark notices, their intentions with Web3 and digital wallets, and the possibility of launching a crypto payments platform. She’s also probing into Meta’s research on stablecoins and potential collaborations in the field. The overarching question is: How will Meta’s technology support crypto functions in its metaverse?

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.