Autor Cointelegraph By Jesse Coghlan

'Secretly circulating' draft crypto bill could be a ‘boon’ to DeFi

'Secretly circulating' draft crypto bill could be a ‘boon’ to DeFi

Uverejnil používateľ | okt 20, 2022 |

A new draft of the Digital Commodities Consumer Protection Act (DCCPA) bill has started to circulate online, with some commentary suggesting it could be positive for decentralized finance (DeFi) and crypto.A prior draft version of the bill drew heavy criticism from industry representative bodies for containing too broad a definition for a “digital commodity platform,” which “could be interpreted as a ban on decentralized finance (DeFi).”In a newly posted 31-page draft bill, shared by Delphi Labs general counsel Gabriel Shapiro, the lawyer said he made the draft bill publicly available as he believes in “transparency and open discussion.”Shapiro remarked on a section amending the meaning of a “digital commodity trading facility” which excluded persons who develop or publish software, commenting that it “could be a boon” to DeFi and crypto.Notably, this version contains a limited exception to the term “digital commodity trading facility” which would exclude persons who solely develop or publish software–this could be a boon to DeFi/crypto. pic.twitter.com/0pa843RJ9h— _gabrielShapir0 (@lex_node) October 19, 2022Dr. Martin Hiesboeck head of research at crypto exchange UpHold tweeted that the newly released draft seems to follow similar regulations in the European Union and the United Kingdom, suggesting that the United States is “finally getting their act together.”First impression: leaked #CFTC Bill seems to follow UK/EU reg in broad strokes even though it uses similar somewhat different terminology. Will prepare a detailed report by tomorrow. US finally getting their act together. All good.— Dr Martin Hiesboeck (@MHiesboeck) October 19, 2022

The comments are a change of tone from the previous version of the bill, which was described by Web3 incubator and advocacy group Alliance DAO as one that “kills DeFi.” The decentralized autonomous organization (DAO) wrote the bill “creates a compliance architecture that precludes the concept of a system of smart contracts operating decentralized infrastructure with little or no reliance on human activity,” as it required people to enforce compliance with the regulations.Related: ‘Time is not on our side’ to provide regulatory clarity on crypto — US lawmakerThere have long been calls for regulatory clarity regarding digital assets in the U.S. with some calling on the U.S. Congress to pass legislation defining commodities and give jurisdiction to the CFTC.First introduced in August the DCCPA extends the regulatory power of the Commodities Future Trading Commission (CFTC) on the cryptocurrency industry and attempts to define certain cryptos, such as Bitcoin (BTC) and Ether (ETH) as commodities rather than securities.

Čítaj viac
Prosecutors argue 'insider trading' claim in the OpenSea case is accurate

Prosecutors argue 'insider trading' claim in the OpenSea case is accurate

Uverejnil používateľ | okt 19, 2022 |

United States prosecutors have opposed a motion by a former employee of nonfungible token (NFT) marketplace OpenSea to remove “insider trading” references from his charges.Prosecutors said the phrase accurately describes the crimes the former OpenSea product manager Nathaniel Chastain is accused of in a memo filed on Oct. 14. It was responding to a motion by Chastain to stop referring to the phrase on Oct. 3, according to Law360.Chastain was charged in June for allegedly buying 45 NFTs from June to September 2021 through anonymous wallets and selling them for a profit. He allegedly used his position at OpenSea to either choose or know which collections were featured on the homepage, which often saw their values increase.Chastain argued the use of “insider trading” to describe his alleged actions is “inflammatory” and doesn’t have anything to do with the accusations he faces, adding a jury may be influenced by the term if his case is brought to trial.He also added that “insider trading” only applies to securities and not to NFTs, a claim similarly made in August by his legal team, and the phrase was used to spark attention in the media to skew the jury’s view of him.Prosecutors fired back, stating the phrase “accurately captures” the accusations made against him and the term isn’t “so inherently inflammatory” to warrant the “extreme measure” of having the term removed from his charges.They also rebuked his claim of insider trading only applying to securities calling it a “legal error” and an “unduly cramped understanding of the phrase” claiming it can be used to reference multiple types of fraud in which someone with non-public knowledge uses it to trade assets.Related: Brother of former Coinbase employee pleads guilty to charges related to insider trading: ReportThe term “insider trading” had previously not been used in reference to cryptocurrencies or NFTs before Chastain’s charges.In June, shortly after Chastain was charged, former U.S. Securities and Exchange Commission (SEC) lawyer Alma Angotti said the case might see NFTs labeled as securities as they could be considered one under the Howey Test.The Howey Test is used to determine if a transaction is an “investment contract” which exists when there is the “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others,” according to the SEC.

Čítaj viac
Moola Market attacker returns most of $9M looted for $500K bounty

Moola Market attacker returns most of $9M looted for $500K bounty

Uverejnil používateľ | okt 19, 2022 |

An attacker has returned just over 93% of the more than $9 million worth of cryptocurrencies they exploited from the Celo (CELO) blockchain-based decentralized finance (DeFi) lending protocol Moola Market.At around 6PM UTC on Oct. 18 the Moola Market team tweeted it was investigating an incident and had paused all activity, adding it had contacted authorities and offered a bug bounty to the exploiter if funds were returned within 24 hours.Analysis of the exploit by Web3 security company Hacken shows the attacker manipulated the price of the protocols’ low-liquidity native MOO token by initially purchasing around $45,000 worth and depositing it as collateral to borrow CELO.The borrowed CELO, along with further CELO provided by the attacker, was then used as collateral to borrow more MOO, driving up the token’s price. The attacker continued repeating this until the MOO token price had increased by 6,400%.With the inflated token price, the attacker was able to borrow $6.6 million worth of CELO, $1.2 million of MOO, along with $740,000 of Cello Euros (cEUR) and $644,000 Celo Dollars (cUSD) all worth multiples more than their initial posted collateral resulting in the protocol’s loss of around $9.1 million.Five hours after the initial confirmation of the exploit, Moola Market tweeted it had received just over 93% of the funds exploited, with the attacker seemingly keeping the rest making around $500,000 as a bug bounty.Following today’s incident, 93.1% of funds have been returned to the Moola governance multi-sig. We have continued to pause all activity on Moola, and will follow up with the community about next steps, and to safely restart operations of the Moola protocol. (1/2) https://t.co/UsdN44X70X— Moola Market (@Moola_Market) October 18, 2022Moola Market did not immediately respond to Cointelegraph’s request for comment.The attack draws similarities to the $117 million exploit suffered by Mango Markets on Oct. 11 in which Avraham Eisenberg and his team manipulated the price of the Solana (SOL)-based DeFi protocols’ native token to borrow cryptocurrencies with an undercollateralized backing. Eisenberg negotiated to keep $47 million as a “bounty.”Related: BNB Chain responds with next steps for cross-chain security after network exploitMulti-chain cryptocurrency wallet BitKeep also suffered an exploit late on Oct. 17 with an attacker making off with $1 million worth of Binance Coin (BNB) through a service used to swap tokens, BitKeep says it will fully reimburse any affected users.The attacks are the latest in a series of exploits to have taken place in October which has also shaped up to be the biggest month ever for hacking activity with the total hacked value reaching around $718 million up until Oct. 12 according to analytics firm Chanalysis.

Čítaj viac
'Performing as expected' — Aptos Labs defends day 1 criticism

'Performing as expected' — Aptos Labs defends day 1 criticism

Uverejnil používateľ | okt 18, 2022 |

After four years of development and millions in funding, the layer-1 blockchain Aptos (APT) finally launched its mainnet on Oct. 17, albeit to somewhat mixed reception.The proof-of-stake blockchain has seen millions invested in it from venture capital firms and has previously claimed the ability to process 160,000 transactions per second (TPS).However, some members of the community have pointed out that the claimed TPS is falling far short of expectations on the mainnet.According to Aptos’ blockchain explorer the network is seeing around 4 TPS at the time of writing, while some users on Twitter have reported not being able to send transactions.Others on Twitter noticed the Aptos Discord was closed for a few hours after the launch of the mainnet, accusing the team was attempting to stop discussion around potential launch issues.Cointelegraph reached out to Aptos for comment and was directed to a “Day one update” tweet by Aptos on Oct. 18. In the tweet, Aptos said the network is “performing as expected” with activity increasing as more ecosystem participants join. Cointelegraph was able to view a variety of transactions from users using its blockchain explorer.Day one update: Today has been exciting. Thank you for all the support! The Aptos network has been performing as expected and will see increased activity as ecosystem projects onboard and get going.— Aptos (@AptosLabs) October 18, 2022Aptos also said it closed comments on its Discord and Telegram channels to “protect the community from scams” and they will “return to normal when appropriate.”The tokenomics of Aptos is not yet publicly available, leading some to cite concerns that cryptocurrency exchanges such as Binance and FTX are listing its token without such information available to their customers.Related: Court partially denies Aptos Labs’ motion to dismiss Glazer’s $1 billion lawsuitAptos has seen millions invested from venture capital firms with the most recent round of funding in July netting Aptos Labs $150 million, a prior round in March raised $200 million with participants including Andreessen Horowitz (a16z), FTX Ventures, and Coinbase Ventures.Aptos Labs was created by former Meta employees Mo Shaikh and Avery Ching who were involved in the failed Diem blockchain project which wound down ​​in February of this year and sold its intellectual property and other assets.The blockchain is built on a programming language originally developed for the defunct Meta-built Diem blockchain.

Čítaj viac
Mango Markets exploiter said actions were ‘legal,’ but was it?

Mango Markets exploiter said actions were ‘legal,’ but was it?

Uverejnil používateľ | okt 18, 2022 |

The $117 million Mango Markets exploiter has defended that their actions were ‘legal,’ but a lawyer suggests that they could still face consequences. Self-described digital art dealer Avraham Eisenberg, outed himself as the exploiter in a series of tweets on Oct. 15 claiming he and a team undertook a “highly profitable trading strategy” and that it was “legal open market actions, using the protocol as designed.”I believe all of our actions were legal open market actions, using the protocol as designed, even if the development team did not fully anticipate all the consequences of setting parameters the way they are.— Avraham Eisenberg (@avi_eisen) October 15, 2022The Oct. 11 exploit worked through Eisenberg and his team manipulating the value of their posted collateral — the platforms’ native token MNGO — to higher prices, then taking out significant loans against their inflated collateral which drained Mango’s treasury.Michael Bacina, partner at Australian law firm PiperAlderman told Cointelegraph “if this had occurred in a regulated financial market it would be likely seen as market manipulation.”“Price manipulation is a cousin of misrepresentation, and in many jurisdictions engaging in misleading and deceptive conduct is unlawful and grounds for legal claims.”Eisenberg has committed to “making all users whole” and negotiations between him and the Mango Decentralized Autonomous Organization (DAO) have resulted in the DAO voting that Eisenberg be allowed to keep $47 million as a “bug bounty,” while the rest will be sent back to the treasury.A stipulation as part of the proposal states MNGO token holders “will not pursue any criminal investigations or freezing of funds” as Eisenburg has sent back the agreed portion of the exploited cryptocurrency.However, Bacina said it’s “unlikely” that Eisenburg would be released from all liability, even from those that voted for the proposal, given the wording of the proposal are “weak,” commenting: “The wording of the proposal is weak and the circumstances are such that the offer of a release are questionable.”That being said, Bacina said there might be a “limited commercial incentive” to sue Eisenburg as any legal claims would be reduced by the amount a member received due to the proposal. “Assuming claims survive the proposal, any claims would still need to be reduced by any amounts which had been received by a member as a result of the proposal, which may mean many members have limited commercial incentive to sue Mr Eisenberg,” he explained. Related Wintermute repays $92M TrueFi loan on time despite suffering $160M hackPart of the $67 million worth of crypto returned to the platform will now be used to reimburse affected users under the reimbursement plan approved by the DAO.Eisenberg maintains the exploited crypto he returned is similar to automatic deleveraging on cryptocurrency exchanges where a portion of profits from profitable traders is recovered to cover losses by the exchange.

Čítaj viac

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy