Issue #71

Regulation

1. Latest updates in Sam Bankman Fried's trial

-- DOJ wants to prevent SBF from referencing Anthropic investment (which may allow him to make creditors whole) in court; judge has yet to make decision

-- Former CEO of Alameda Research Caroline Ellison testified that SBF: directed her to commit fraud, had ambitions to be US President, wanted to acquire Snapchat, and created multiple versions of the company's balance sheet

-- Ex-engineer: Alameda and FTX lost at least $200M and $400M (respectively) due to security lapses

-- Defense lawyers trying to frame Ellison as the instigator of the events that led to the collapse of FTX

2. SEC reportedly won't appeal court decision on Grayscale Bitcoin ETF

3. Brazilian regulators set to begin exploring use cases for blockchain technology

-- Launching a regulatory sandbox program in 2024 with central bank and Comissão de Valores Mobiliários to explore tokenization use cases

-- Rolling out a program to issue ID documents using a private blockchain

4. Hata receives approval from the Securities Commission Malaysia to become the 5th regulated crypto exchange in the country

Infrastructure

1. Ripple CTO seeks community consensus for release of AMM on XRP Ledger

2. Lido Finance discloses 20 slashing events due to validator config issues

-- Resulted in a loss of $31k and additional penalties

-- Lido DAO has an insurance fund to mitigate the slashing impact

3. Blocknative reduces headcount by 33%

-- Recently suspended MEV boost relay service

4. Ripple's CFO Kristina Campbell exits company to join Maven Clinic

Finance

1. JP Morgan, BlackRock, and Barclays successfully complete a blockchain-based collateral settlement transaction

-- Used JP Morgan's Onyx blockchain and Tokenized Collateral Network

-- Tokenization of money market fund shares as collateral in clearing and margining transactions could reduce operational friction in meeting margin calls

2. Tokenized real-world asset loan worth $20M sours on DeFi platform Goldfinch

-- Underwriter Warbler Labs will backstop all losses to investors in the pool

3. Real estate-backed stablecoin USDR de-pegs after treasury is drained of DAI

-- Other than DAI, treasury was backed by an insurance fund and a relatively illiquid token called TNGBL

4. Tether names CTO Paolo Ardoino as new CEO

5. Morpho Labs releases white paper for Morpho Blue, a non-custodial lending protocol

-- Supports permissionless market creation with oracle-agnostic pricing

-- Simplifies the user experience for passive lenders in DeFi by enabling the development of risk management vaults atop its lending protocol

6. Instadapp releases new lending protocol called Fluid

Consumer/Misc Apps

1. Uniswap launches Android wallet beta

2. Biotech investment DAO VitaDAO launches its first biotech firm Matrix Biosciences

-- Researching compounds found in cancer-resistant naked mole rats, with the aim of discovering a drug candidate for the treatment of cancer and aging-related diseases

Security

1. Hamas-linked crypto accounts frozen by Israeli police with help from Binance

2. Hacker behind Stars Arena hack (covered last week) cooperates in exchange for 10% of the stolen funds

-- Remaining 90% of stolen funds recovered

3. Crypto trading bot provider 3Commas on 'heightened alert' after several user accounts hacked

-- Reports of unauthorized trades on some user accounts

-- Urging users to enable 2FA

4. Astrology-themed NFT project Lucky Star Currency rugged for $1M

-- The project was heavily promoted in China

5. Galxe making users affected by a recent hack whole by 110%

6. HTX exchange hacker returns majority of stolen funds in exchange for bounty

Research

1. BitVM - a protocol to build Turing-complete smart contracts on Bitcoin (source)

-- Involves running computations off-chain and verifying them with fraud proofs, a challenge-response protocol, and Bitcoin's Taproot upgrade

-- Limitations: cost of off-chain data management, limited to 2-party contracts

2. Unclonable non-interactive zero-knowledge proofs (source)

3. Mixing solutions in the Bitcoin and Ethereum ecosystems (source)

-- Presents an evaluation framework for blockchain-based mixing services

-- Identifies an opportunity to build a cross-chain mixing service

-- Authors conducted real-world attacks to reveal the operational mechanisms behind existing black-box mixing services

4. Privacy-preserving financial anomaly detection via federated learning and multi-party computation (source)

5. An analysis of crimes in DeFi (source)

-- Collected data on 1155 crime events from 2017 to 2022

6. A study of governance in DAOs (source)

-- Compiled a dataset comprising 987k voters across 872 DAOs

-- Conclusions: project developers hold majority control in at least 7.54% of DAOs and have singularly decided at least one proposal in 20.41% of DAOs

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