Issue #133

Regulation

1. Tornado Cash developer Alexey Pertsev sentenced to 5 years and 4 months in prison by Dutch court

-- Found guilty of laundering $1.2B in crypto

-- Co-Founder Roman Storm facing similar charges in the US

2. DOJ arrests 2 individuals for raking in $25M in 12 seconds by manipulating MEV bots and validators through false signatures

3. US Senate votes to overturn SEC's accounting bulletin, which requires firms to account for customer crypto holdings as liabilities

-- President Biden is likely to veto the measure, with insufficient votes for a veto override

4. Kraken is contemplating removing support for Tether on its European platform following the approval of MiCA regulations

5. Crypto broker FalconX pays $1.8M in fines to the CFTC, agrees to cease offering services to US residents

-- Allegedly failed to register as a futures commission merchant and facilitated access to crypto exchanges

6. French regulators warn investors that Bybit is operating illegally in the country by offering digital asset services without registration

Infrastructure

1. Restaking market positioned to become more competitive

-- Lido's co-founders and Paradigm are backing Symbiotic, a new restaking protocol set to compete with EigenLayer

1. Vitalik Buterin drafts EIP-7706 to reduce fees for data-heavy transactions

-- Introduces (i) a 3rd gas fee type exclusively for call data in Ethereum transactions and (ii) a new transaction type to to handle all 3 types of gas

2. Eclipse CEO Neel Somani departs after facing sexual assault allegations

-- Former Chief Growth Officer Vijay Chetty named as new CEO

3. L3 network Degen Chain faces critical downtime

-- Background: Degen Chain is built by the developers of Degen, a popular memecoin on Base

-- Problem: unable to validate transactions or produce new blocks

-- Worked with RaaS provider Conduit to resolve the issue caused by a custom config change

Finance

1. JP Morgan partners with Broadridge with JPM Coin

-- JPM Coin to be supported for on-chain settlement on Broadridge's Distributed Ledger Repo (DLR) platform

2. More institutions disclose holdings in spot Bitcoin ETFs including:

-- Bracebridge Capital: a hedge fund that manages funds from the endowments of Yale and Princeton

-- Millenium Management: investment management firm with $62B AUM

-- State of Wisconsin Investment Board

-- Morgan Stanley

3. Former CFTC Chair Chris Giancarlo joins crypto broker Paxos' board

-- Will help the company expand in regulated crypto markets and with stablecoin innovation

4. Deutsche Bank and Singapore partnering to explore asset tokenization

5. CME Group plans to introduce bitcoin spot trading alongside its existing futures product

-- Will compete with Coinbase and Binance for institutional liquidity

6. Crypto exchange OKX expands to Australia

7. Goldman Sachs alumni launch new crypto VC Neoclassic Capital

-- Focus is on SocialFi and GameFi and bridging East-West ecosystems

8. Franklin Templeton CEO says all ETFs and mutual funds will be on blockchain

9. Antonio Juliano steps down as dYdX CEO (source)

-- Former Chief Strategy Officer Ivo Crnkovic-Rubsamen taking over

10. DTCC, Chainlink complete fund data tokenization pilot with US banks

-- Established a standardized process for bringing and disseminating net asset value (NAV) data of funds across various blockchains

-- Participating banks included JP Morgan, Franklin Templeton, and BNY Mellon

11. Indian crypto exchange CoinDCX’s DeFi arm Okto to launch blockchain and OKTO token

12. Philippines' central bank grants approval to crypto exchange Coins(.ph) to pilot a stablecoin under a regulatory sandbox framework

13. Re launches an open-ended reinsurance fund using the Avalanche network, attracting investors like Nexus Mutual and Ava Labs

-- The fund focuses on tokenized reinsurance for properties, trucking, aviation, and workers compensation

-- Offering up to 23% annualized yield with a minimum lock-up period of one year

Consumer

1. NFT collection Pudgy Penguins sells 1M plush toys within a year

-- NFT holders can earn royalties on physical product sales

2. Legendary meme stock trader "Roaring Kitty" returns

-- Background: Roaring Kitty led the infamous short squeeze of Gamestop stock in 2021, bankrupting several hedge funds

-- His return is expected to add fuel to the memecoin mania in crypto

3. Immutable Games releases 'Guild of Guardians' on mobile

-- Offering $1M in prizes in GOG tokens

-- Had 1M pre-registered users

4. Solana DEX Drift airdrops tokens

-- Deterred immediate selling by offering a 2% bonus to users who didn't sell (the bonus unlocked gradually over 6 hours)

5. Web3 game Pixels hits 1M DAUs and $1.6M worth of transactions in the last month

6. Ripple CEO claiming that Tether will face action from US govt

-- No evidence provided

Security

1. Solana-based memecoin launch platform pump(.fun) exploited

-- Former employee conducted a bonding curve attack

-- The platform is now back up and running, assuring users that their smart contracts are safe and impacted users will receive 100% of their liquidity within 24 hours

2. Coinbase suffers from 3-hour system-wide outage

-- User funds were safe

3. North Korean hackers deploy ‘Durian’ malware

-- Launching targeted attacks on South Korean crypto firms

-- The malware includes a backdoor tool and a custom proxy tool, enabling the execution of commands and exfiltration of files

4. Rain Exchange possibly loses $14M to exploit

5. Alex bridge on BNB Smart Chain drained of $4.3M after suspicious upgrade

-- Potentially due to a private key compromise

6. Binance's security team created an algorithm to detect and flag millions of spoofed crypto addresses

-- Millions of dollars have been lost to address poisoning attacks as of late

Research

1. Authentication in TLS with DIDs (source)

-- Use of self-issued X.509 certificates equipped with ledger-anchored DIDs instead of CA-issued identifiers

2. A virtual CPU to optimistically execute arbitrary programs on Bitcoin (source)

3. Description of methods to restrict functions from being called twice in the same transaction, block, or time period (source)

-- These methods could have been used to prevent $136M worth of DeFi losses in the last year alone

4. Device integrity monitoring through iSIM applets and DLT (source)

5. Merkle tree inclusion proofs via OR aggregation (source)

-- By aggregating proofs using OR logic, the proof size is independent of the number of leaves in the tree, and verification can be performed using any single valid leaf hash

-- This represents an improvement over AND aggregation, which requires the verifier to process all leaf hashes

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