Issue #93

Regulation

1. US judge rules that UST, LUNA, wLUNA, and MIR are securities

2. Barnbridge DAO agrees to pay $1.7M fine to settle with SEC

-- Allegedly offered illegal crypto securities to US investors

-- One of the first crypto startups structured as a DAO to face legal action from the SEC

3. Hong Kong now open to considering spot crypto ETF applications

4. Nigeria reverses its prohibition on financial institutions serving crypto firms

-- The decision follows the recommendation of international standard setters like IMF to regulate the industry rather than ban it

5. Hong Kong proposing mandatory licensing regime for fiat-backed stablecoin issuers

-- Collecting public feedback until Feb '24

6. India issues compliance show cause notices to 9 offshore crypto exchanges

-- Affected exchanges: Binance, KuCoin, Huobi, Kraken, Gate(.io), Bittrex, Bitstamp, MEXC Global, and Bitfinex

-- Aforementioned exchanges must register with India's Financial Intelligence Unit and comply with AML framework

7. CZ denied permission to travel by judge (again)

Infrastructure

1. Vitalik Buterin proposes 3 ways to reduce the # of signatures required for Ethereum's PoS consensus mechanism (source)

-- (1) Decentralized staking pools, (2) two-tiered staking, (3) rotating participation

Finance

1. Barry Silbert resigns as Grayscale chairman

-- New York Attorney General Letitia James has sued Silbert for allegedly defrauding investors

-- DCG SFO Mark Shifke to replace Barry

2. Binance's user base grew 30% in 2023, despite regulatory headwinds

3. Stablecoin issuer TrueUSD partners with accounting firm MooreHK to provide daily attestation services and reserve attestation reports

Security

1. Telcoin suffers $1.2M exploit

2. De(.Fi) releases 2023 security report

-- Users lost nearly $2B to scams, rug pulls, and hacks (roughly half the amount of 2022)

-- Access control exploits, flash-loan attacks, and exit scams account for the majority of the losses

3. ImmuneFi releases 2023 security report

-- Users lost $1.8B in 2023 (54% decrease YoY)

-- Number of incidents increased 90% YoY

-- Lazarus Group responsible for 17.4% of the total losses

4. Crypto exchange Catalyx faces security breach

-- Canadian regulators issued a 15-day freeze order

-- Breach may have involved an employee

5. On-chain trading platform Thunder Terminal loses 86.5 ETH and 439 SOL in exploit

-- Promised to refund all lost funds to users

6. Perpetual swap protocol Levana falls victim to exploit, resulting in loss of $1.1M from its liquidity pools

Research

1. Evaluating the performance of smart contract vulnerability scanners (source)

2. A language and compiler for FHE with support for proxy re-encryption (source)

-- Enables the application of FHE to multi-party scenarios

3. A game-theoretic model for MEV-Boost auctions (source)

4. Developing liquidity pools for unsettled ERC-20R tokens (source)

-- ERC-20R is a wrapper around ERC-20 tokens that supports asset recovery within a limited time window after an asset is transferred

-- The paper proposes an AMM and orderbook design for the exchange of an unsettled ERC-20R and the base asset

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