A joint research effort by Korean regulators — the Financial Supervisory Service (FSS) and Korea Financial Intelligence Unit (FIU) — has revealed that seven out of 10 cryptocurrency exchanges in South Korea failed to fully return investors’ money after ceasing operations. “And even if they did, just one or two employees were tasked with giving […]
Bitcoin News
Hacked Japanese Crypto Exchange to Raise 50 Billion Yen to Repay Customers
DMM Bitcoin, a major cryptocurrency exchange based in Japan, has revealed its plan to secure 50 billion yen (0 million) to repay customers after a significant security breach resulted in the loss of 4,503 bitcoins. The BTC leaked from the platform’s wallet on May 31. To ensure full reimbursement for affected customers, DMM Bitcoin plans […]
Bitcoin News
Curve Impressively Adds 22% As Founder Sells CRV To Repay Aave Loan
CRV, the governance token of Curve, a decentralized exchange for stablecoins and a key player in the decentralized finance (DeFi) landscape, has impressively recovered, adding 22% after sinking to its August 2023 lows this week.
When writing on August 3, CRV is trading at .59, rising double digits after dropping to .48 on August 1 following a damaging hack that saw liquidity providers in several pools lose funds.
Whales Stepping In To Buy CRV
This recovery is attributed primarily to strategic actions by notable crypto whales who have stepped in to mitigate risks on DeFi should CRV prices continue to tank. Meanwhile, Michael Egorov, the founder of Curve and one of the largest CRV holders, has been actively unloading tokens in the secondary market.
Egorov is selling to whales like Justin Sun, the founder of Tron, and other venture capitals and decentralized autonomous organizations (DAOs). The founder held around 292 million CRV and used a big percentage to back his loans.
On-chain data indicates that on August 2, Egorov sold 3.75 million CRV tokens to Yearn Treasury and another 1.25 million CRV tokens to Stake DAO Governance via the over-the-counter (OTC) market.
Egorov has, overall, sold 59.5 million CRV to various institutions and investors, yielding approximately .8 million. These OTC sales are at significant discounts, reflecting the founder’s efforts to stabilize CRV prices and prevent further contagion.
The July 30 hack saw attackers steal funds from several liquidity pools after exploiting a re-entrancy flaw. JPEG’d, Alchemix, Pendle, and Metronome pools suffered losses initially estimated at around million. However, other reports suggest that white hat hackers intervened, reducing the total impact to approximately million.
Following this news, CRV prices dropped by over 12%. Considering Curve’s prominence in DeFi, the hack and price crash caused reverberation throughout Curve and DeFi, especially in decentralized money markets.
Curve Is A Big Player In DeFi, Egorov Paying Off Debt
Curve manages over billion as total value locked (TVL), according to DeFiLlama. While there are no confirmed repercussions on other protocols, attention swung to Egorov’s million Aave v2 loan, which was primarily backed by CRV. Should this loan be liquidated, it would likely mean more selling pressure on CRV, leading to another possible contagion, especially for other CRV holders with loans across different protocols.
Looking at on-chain data, Egorov is taking active steps to reduce the risks brought about by his huge Aave loan that’s overly collateralized by CRV. Egorov aims to minimize the potential consequences of forced liquidation through off-market transactions, where he is selling his CRV at a discount and simultaneously repaying his loan. This, in turn, appears to be supporting prices.
Cream Finance Plans To Repay The Stolen Funds To Its Users
Cream Finance is a decentralized finance protocol to repay users for the flash loan hack on its platform. The hack of nearly million occurred on Aug 30, 2021.
Cream Finance puts news of a post-mortem to the massive exploitation of the AMP flash loan. The protocol promises to repay the stolen Amp (AMP) and Ether (ETH) coins.
It plans on footing its promise by allocating 20% of all the protocol fees until the debt is fully paid. Furthermore, the protocol will post collateral with the pertinent parties at AMP. It will also involve the Flexa digital payments network, the creators, for the security of the debt.
From the post-mortem report, this recent flash loan hack stands for Crean Finance’s first time to face direct hacking.
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This mishap caused the loss of about 2,800 ETH and 462 million AMP coins. Through the assistance of PeckShield, a blockchain security company, Cream Finance discovered the major cause of the hack.
The protocol uncovered that there’s an error in its means of AMP integration. Cream confirmed that though the situation is disappointing and unfortunate, it will solely bear the responsibility for its error.
Cream Finance Is Inspecting The Hack
Besides the massive exploit on its platform, Cream Finance has found a similar attack. However, this smaller move comes from an address with a history of transactions on the Binance crypto exchange. Binance is currently working together with Cream Finance to fish out this second attacker.
Cream revealed that it would cooperate with the necessary authorities to track the perpetrator. Furthermore, it will work with law enforcement bodies to prosecute the attacker using the full weight of the law.
Also, the hacked protocol will part with a 10% bug bounty to the attacker where they are ready to return the stolen assets.
Additionally, Cream appealed for public assistance in identifying the perpetrator or providing relevant information for his arrest and prosecution. The protocol pledged a ransom of 50% of returned funds for such assistance.
As recently notified, on August 30, Cream stopped supply and borrow contracts on AMP. This move closes the exploit that gave the attacker access to about million worth of ETH and AMP from assets reborrowing within 17 different transactions.
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Following this recent huge exploitation, the prices of AMP and CREAM, the Cream’s native coin, have plummeted. The AMP value has suffered almost a 13% dip.
At the time of writing, CREAM is trading sideways | Source: CREAMUSD on TradingView.com
Furthermore, these affected coins now have continuous price dipping preceding the attack. For example, cream token CREAM has plummeted by 11% within the last seven days. The token now sells at 3.08 at the time of writing. AMP, being down also, is at .05275.
Featured image from Pixabay, chart from TradingView.com
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QuadrigaCX Founders Widow Will Cough Up $9 Million to Repay Users
Bankruptcy trustee EY and the widow of QuadrigaCX founder Gerald Cotten have come to a settlement with affected users of the defunct exchange getting a million payout.n
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