FBI TO HELP DEFI VULNERABILITY
Kyle Roshe defends himself. More to Ethereum Merge. Snoop Dogg and Eminem’s failure(?) on VMAs. News on Grayscale Bitcoin Trust. Crypto Owl’s Newsletter to the next step.
Coo! It’s me, Crypto Owl, and since today is National Toasted Marshmallow Day, I’m bringing you the most delicious crypto news this morning. Without further ado, let’s get started!
On Today’s Menu:
🥚EGGS BENEDICT: FBI Is Concerned About DeFi Vulnerability
🌯THE BREAKFAST BURRITO: Kyle Roche’s Videos - Set Up?
🍞FRENCH TOAST: Ethereum Merge Update
🌶MEXICAN OMELETTE: Tuesday Facts
🥮PIECE OF APPLE PIE WITH ICE CREAM: More Crypto News Around The Web
FBI IS CONCERNED ABOUT DEFI VULNERABILITY
It appears that cybercriminals just looove to attack various DeFi protocols via smart contracts as they are the most vulnerable piece of the chain. That’s why it got the FBI’s attention.
Data shows that in Q1 of this year, attackers stole around $1.3 billion worth of digital assets from DeFi protocols.
The Federal Bureau of Investigation issued a new warning focused exactly on cyber attacks on DeFi platforms.
FBI points out three cyberattackers’ ways to attack DeFi and smart contracts:
Token bridges - they are known for being one of the most vulnerable parts of DeFi platforms; lots of developers creating blockchains work specifically on bridges and their security to avoid attacks; however, it’s still an endangered spot;
Cryptocurrencies’ price manipulations exploit various vulnerabilities such as single price oracle (meaning you can see only one price using a single source of information, which leads to possible failure and losing trust);
Proposing flash loans - easy money fast is a very tempting offer, right? Yet, it usually leads to fraud.
It’s no secret that smart contracts built on DeFi protocols and platforms are vulnerable. Numbers of blockchain security firms work on this problem. And now the FBI joins, suggesting help for those who got hurt financially from such attacks.
You can read the full Federal Bureau of Investigation Public Service Announcement here; the FBI recommends carefully and precisely looking for information about DeFi platforms, smart contracts, and protocols before investing. For instance, check if a platform had at least one audit done; if it has one, or better - more, it is presumably safer.
The document also noticed investors be “aware of the potential risk posed by crowdsourced solutions to vulnerability identification and patching. Open source code repositories allow unfettered access to all individuals, including those with nefarious intentions.”
As you can see, it’s a severe problem. There is a reason why even the FBI got involved in it. So, if you’re an investor targeted by cyber attackers, you can contact the FBI via the Internet Crime Complaint Center or the local FBI field office.
KYLE ROCHE DEFENDS HIMSELF SAYING LEAKED VIDEOS ARE SET-UP
Yesterday, I wrote about a possibly shady agreement between Ava Labs (Avalanche blockchain) and law firm Roche Freedman. All that information reached us through leaked videos.
Long story short, Roche Freedman’s co-founder and lawyer Kyle Roche was being paid for “helping” Ava Labs to get rid of competitors and, in general, to keep Ava Labs safe from any regulations or other problems. As Kyle said in one of the videos, “I deal with making sure that the SEC and the CFTC have other magnets to go after”. This partnership goes hand in hand, obviously.
Yesterday, Ava Labs CEO Emin Gün Sirer reacted fastly. He said there are no illegal agreements between Avalanche and Roche Freedman and these leaked videos are not real. “How could anyone believe something so ridiculous as the conspiracy theory nonsense?” he wrote on Twitter.
Response to that was:
Now, Kyle Roche brought up his comment about this whole incident.
Surprise or not, he also says that these videos are set up and false. I mean… what else would he say, right?
Roche claimed that these videos were made up by ICP token creator Dominic Williams. For context - in 2021, Roche Freedman filed a class-action suit against Dominic Williams’ created Dfinity Foundation (the company behind the ICP) for allegedly selling ICP tokens illegally. So, now Kyle brings this whole video situation as a matter of revenge.
Kyle Roche wrote in his official response:
“These videos were recorded without my consent during private meetings with Christen Ager-Hanssen, whom I now know works for Dominic Williams, the creator of ICP Token, and the defendant in a high-profile securities fraud litigation my firm brought against him. Mr. Ager-Hanssen requested a meeting with me under the false pretense of venture capital investment in a technology startup, but his real motives are now clear: to deceive and entrap me.”
Well, somebody’s lying in this story. Let’s wait and see which one’s pants will fire up.
EXCITING UPDATES ON THE ETHEREUM MERGE
We’re all waiting for the Merge, which will finally happen on September 10-20th.
But tomorrow will also be interesting as Arbitrum - Ethereum layer-2 scaling solution - will undergo the “most advanced” upgrade called Nitro.
Because of that, users should expect short network downtime:
Nitro should complete and fully integrate layer-2 rollup system on Arbitrum;
In one article, the Offchain labs (the company behind Arbitrum and responsible for Ethereum scaling solutions) said that “Nitro will massively increase network capacity and reduce transaction costs”. So, that’s exciting!
Also, Vitalik has something to remind all of us:
TUESDAY FACTS:
A few days ago, I wrote about Eminem and Snoop Dogg’s newest single, From The D 2 The LBC, containing artists’ owned BAYC NFTs (both Eminem and Snoop Dogg are crypto enthusiasts). The song had to be performed at MTV’S Video Music Awards, and it just happened! For the first time, the song was performed in the metaverse on the VMAs stage. There were some people who liked it; however, many people weren't fans of it, and animations got the most hate; the Twitter community claimed that the animation of this performance is “barely better than we had 25 years ago”. Well, you can see it yourself:
Grayscale Bitcoin Trust, the largest publicly traded Bitcoin fund in the world, is at an all-time low: deviation is -33.3%, and that is not a good thing (at least trading markets are not happy); this is because, at Grayscale, you can buy Bitcoin shares via traditional brokerages, and as you can see, shares do not match with actual BTC price, especially now. So, basically, it’s a sign of a lack of confidence.
MORE CRYPTO NEWS AROUND THE WEB
Binance Australia Impose New Measures to Safeguard Vulnerable Users
Dubai Rolls Out New Virtual Asset Marketing and Advertising Guidelines
META Allows Users to Post Their NFTs on Facebook and Instagram
🤩BY THE WAY…
Something fascinating and cool is awaiting! This Crypto Owl Newsletter is about to take the next step; the most important part is that I will need your voice for that! Without you, it would not be possible. So, stay tuned for tomorrow’s newsletter! 🦉
GRAPEFRUIT JUICE
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your research and act responsibly with your profits.
Great post. Hopefully the merge actually goes through later this month.