Weekly Crypto Roundup: MetaMask, Rain Hack, Tether, Uniswap & More

May 16, 2024

Crypto World

Maciej Zerelik

Welcome to our latest weekly crypto roundup, brought to you by StealthEX and CryptoDaily! In this edition, we’re spotlighting the biggest and most exciting news in the crypto world. Eager to learn about the news that’s making waves in the digital assets sector? Join our new digest!

MetaMask Deploys Smart Transactions to Reduce Fees and Improve Privacy

ConsenSys has announced a new feature called Smart Transactions for MetaMask users. This feature aims to improve transaction success rates, lower gas costs, and protect users from harmful attacks like frontrunning. MetaMask users have often complained about high fees and transaction failures.

Smart Transactions keep transactions private until they are confirmed on-chain, preventing bots from front-running them. The success rate of these transactions is high because they undergo a pre-simulation using MetaMask’s just-in-time simulation service. During beta testing, the system achieved a 99.5% success rate, which is higher than the industry standard. This improvement is due to a new mempool virtualization technology developed by ConsenSys.

Users can also track the status of pending transactions in real-time on a new dashboard within the wallet, eliminating the need to use third-party block explorers. Jason Linehan from ConsenSys stated that Smart Transactions help users manage their transactions better when they are sent to the blockchain network.

Crypto Exchange Rain Hacked for $15M$

Rain, a Bahrain-based crypto exchange, has suffered a major security breach. On April 29, 2024, hackers stole about $14.8 million from Rain. The theft involved suspicious outflows from Rain’s BTC, ETH, SOL, and XRP wallets. The stolen funds were quickly moved to instant exchanges and swapped for BTC and ETH. The funds ended up in wallets holding 137.9 BTC and 1,881 ETH, which have not been used since.

The investigation revealed an Ethereum wallet ending in d609 received multiple transactions from Bitgo multisignature wallets. These 26 transactions involved ETH and various tokens like Shiba Inu, Chainlink, Tether, and USD Coin, which were then swapped for ETH on Uniswap. The d609 wallet later accumulated different tokens, including Aave, Yearn Finance, and MakerDAO, which were also exchanged for ETH. This shows the sophisticated methods hackers used to hide their activities.

Since May 5, Rain’s advanced trading platform has faced intermittent outages. In 2023, Rain got a license to operate a virtual asset brokerage and custody service in the UAE. This breach adds to the increasing number of crypto-related security incidents. Last year, hackers stole $2 billion from crypto investors, with another $333 million stolen in the first quarter of this year.

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Tether CEO Dismisses SEC Probe Rumors, Calls Them Malicious FUD

Tether CEO Paulo Ardoino criticised Ripple chief Brad Garlinghouse for his remarks on enforcement actions against Tether. Ardoino accused Garlinghouse of spreading fear, uncertainty, and doubt (FUD) about USDT. Ripple plans to launch its own stablecoin soon.

Garlinghouse claimed that authorities are targeting Tether. He mentioned this during an episode of the World Class Podcast. Garlinghouse believes the US government is going after Tether, which could lead to another major crypto market disruption. He likened it to the collapse of FTX.

Ardoino responded strongly, calling Garlinghouse’s comments baseless. He described Garlinghouse as an “uninformed CEO” whose company is also in legal trouble with the US Securities and Exchange Commission. Ardoino defended Tether, highlighting its leading position due to a strong track record, trusted custodians, and strict compliance measures.

Ardoino emphasized Tether’s compliance efforts, stating that USDT adheres to US sanctions lists and collaborates with law enforcement. This cooperation has blocked $1.3 billion in illicit crypto and shut down 339 illegal wallets. He contrasted Tether’s approach with other stablecoin issuers, pointing out their direct cooperation with regulators.

Tether’s mission, according to Ardoino, is to ensure a safe global financial ecosystem. He stressed that USDT has proven price stability, highly liquid reserves, top-tier custodians, and deep compliance.

Uniswap Founder Urges Biden to Change His Anti-Crypto Stance

Uniswap founder Hayden Adams has called on President Joe Biden to rethink his stance on cryptocurrency. Adams warned that the Democrats’ anti-crypto position could damage the industry. He emphasized that this view could also impact the upcoming elections.

Adams voiced his concerns on social media, criticizing President Biden’s approach to cryptocurrencies. He warned that this stance could harm the growing crypto sector. Adams criticized Biden’s campaign strategy, especially amidst rising tensions between regulatory bodies like the SEC, Senator Elizabeth Warren, and crypto supporters. He described the Biden administration’s approach as a significant oversight and urged for immediate corrective action.

With the increasing popularity of cryptocurrencies, traditional financial institutions need to adapt. Adams stressed the importance of the crypto industry, noting that 40% of US adults are already involved in digital currencies.

He also criticized the Biden campaign’s focus on red states instead of swing states during previous elections. Adams called this a strategic mistake, believing the Biden administration underestimated the impact of cryptocurrencies on the 2024 elections. He urged those close to Biden to push for a change in his crypto approach, highlighting the need for public support and better regulation.

Ripple Joins Hedera and Algorand Ecosystems for DeRec Alliance

Ripple and XRPL Labs have teamed up with Hedera and Algorand to create the DeRec Alliance. This new alliance aims to set a standard for digital asset recovery. By uniting industry leaders, they hope to improve interoperability and accessibility in the crypto space.

Ripple and XRPL Labs are key players in blockchain technology. They have joined the Algorand Foundation and Swirlds Labs, which developed Hedera. These four organizations are the founding members of the DeRec Alliance. They hold two-year seats on the Technical Oversight Committee.

Wietse Wind, CEO of XRPL Labs, supports the initiative. He emphasizes the need for advanced and user-friendly key recovery solutions. Wind believes that the DeRec Alliance will simplify user experience while maintaining security.

The DeRec Alliance includes many diverse members. These members range from Acoer and BankSocial to The HBAR Foundation and Revive Labs. Their common goal is to develop a new interoperability recovery standard. This standard will make crypto and asset recovery easier and more accessible.

Markus Infranger also supports the alliance’s efforts. He believes that clear standards for key recovery will empower individuals. Infranger says Ripple is committed to creating a more accessible and secure ecosystem.

The DeRec Alliance was founded by Hedera’s co-founder, Leemon Baird. Initially launched in January 2024, the alliance aims to provide an open-source process for digital asset recovery. Ripple and XRPL Labs are working on this new standard to benefit a wide range of users. Baird highlights the importance of a safety net for digital assets, especially for non-experts.

Robinhood Markets Receives Wells Enforcement Notice from SEC

Robinhood Markets announced it received a Wells notice from the SEC. The SEC sends a Wells notice when it plans to take enforcement action. This does not mean the company has done anything wrong. The SEC staff recommended action against Robinhood, as per an 8-K filing.

Dan Gallagher, Robinhood’s chief legal officer, responded. He stated that they believe the assets on their platform are not securities. Gallagher expressed readiness to engage with the SEC. He emphasized that any case against Robinhood Crypto is weak on both facts and the law.

Robinhood has cooperated with the SEC on various inquiries. These include questions about their cryptocurrency listings, custody of digital assets, and operations of Robinhood Crypto. The Wells notice follows Robinhood’s decision to delist certain tokens like Solana, Cardano, and Polygon in 2023.

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.