TOP STORIES OF THE WEEK
Debtors Declare 'Massive Shortfall' in FTX Assets, FTX US Also In the Red
A concerted effort to identify and inventory the remaining assets of failed cryptocurrency exchange FTX has revealed "the magnitude of the shortfalls discovered in the fiat bank accounts and digital asset wallets associated with the FTX.com and FTX.US exchanges," according to a presentation filed by FTX Debtors in the firm's Chapter 11 bankruptcy cases Thursday. While FTX CEO John Ray III cautioned that all the facts are not yet in, and the information is preliminary and "should not be relied upon," the data illustrates a massive ~$8.7b deficit.
Crypto Bank Silvergate Stock Tumbles After 'Going Concern' Filing
Shares of crypto-friendly lender Silvergate Capital (SI) plunged ~58% Thursday on questions about its survival due to losses and numerous regulatory issues that have arisen following November's FTX exchange collapse. In a filing late Wednesday, the California-based bank said it needed more than two additional weeks to finish producing its annual report, and said the impact of recent events raises questions about its ability to continue as a "going concern." JPMorgan and Canaccord sell side analysts were quick to downgrade Silvergate on the news, and various industry players, including Coinbase, Kraken, and Circle began to publicly distance themselves.
Wormhole Counter-exploit Forces Scrutiny of Multisigs in DeFi
Returning to early 2022, a hacker exploited the Wormhole cross-chain bridge and stole 120k ETH, worth above $321m at the time, marking one of the largest crypto exploits on record. Jump Crypto, which is one of Wormhole's lead backers, announced it would absorb the losses and replace the 120k ETH. Fast forwarding to 2023, it appears Jump and Oasis have 'counter-exploited' the Wormhole hacker after they interacted with an upgradable contract. After receiving an order from the High Court of England, Oasis, a privately owned app deployed on top of DeFi protocol MakerDAO, carried out a counterattack by adding an “authorized third party” to its multisig. The third party, believed to be Jump, then used it to upgrade Oasis’ proxy contract, ultimately seizing the stolen funds. While some view this as a positive resolution to a 'wrong,' many others point to the inherent centralization that exists with upgradable contracts.
Collector Sells $18M in NFTs on Blur — Then Buys Some Back
An NFT collector roiled the marketplace over the weekend in a series of trades that left investors’ heads spinning. Machi, a major collector, sold 1,010 prized NFTs in just 48 hours on Blur, the newly-crowned top NFT marketplace by volume, according to Nansen’s Andrew Thurman. The sales included 90 Bored Ape Yacht Clubs, 191 Mutant Ape Yacht Clubs, 112 Azukis, and 308 Otherdeeds for 11,024 ETH ($18M).
Yuga Labs’ Dookey Dash key sells for $1.6M
A one-of-one prized NFT awarded to the highest scorer in Yuga Labs’ Dookey Dash game has sold for ~$1.6m. Faze Mongrall, a professional Fortnite player, received the prized key after claiming Dookey Dash's highest score. Mongrall announced he sold the item to billionaire metal recycling and crypto mining entrepreneur Adam Weitsman for 1,000 ETH.
Solana Developers Say Reason for Network Outage Still Unclear
Solana mainnet suffered a significant performance degradation over the weekend and eventually led "the validator community to opt for a restart of the network. The cause of this is still unknown and under active investigation", according to developers. The problems that started as sluggish transaction processing spiraled into a near complete shutdown of activity on Solana. Users were unable to move any tokens or conduct any transactions during the outage period until a restart by the network’s validators, at which point transactions resumed, albeit very slowly.
BITCOIN
Bitcoin Long Liquidations Hit Highest Level Since August
Jack Dorsey's Block Launches Service Provider to Make Lightning More Reliable
Xapo Bank Integrates Bitcoin’s Lightning Network, Partners with Lightspark
Bitcoin’s least volatile month ever? BTC price ends February up 0.03%
Mt. Gox creditors may finally start seeing their bitcoins this month
Bitcoin ATM decline: Over 400 machines went off the grid in under 60 days
Bitcoin core developer distances himself from NFTs using his code without permission
Allure of Bitcoin Ordinals, DeFi Drives Crypto Funds to Bitcoin Layer 2-Token Stacks
ETHEREUM
Shanghai + Capella = 'Shapella': How Ethereum Devs Now Refer to Upcoming Upgrade
Ethereum developers deploy “EntryPoint” to let wallets operate as smart contracts
Ethereum Says ERC-4337 Deployed, Tested, Beginning Era of Smart Accounts
Ethereum testnet successfully forks in Shanghai upgrade rehearsal
Scroll’s zk-EVM Layer 2 goes live on Ethereum’s Goerli testnet
‘Free’ Goerli ETH tanks 43% after rising to $1.60 during the weekend
ALTCOINS
Aave starts governance discussion to deploy on upcoming Polygon zkEVM mainnet
NEAR to transform into Blockchain Operating System
IOST Network's Token Surges Over 8% on Deal With Amazon Web Services
Wallet Provider Safe Taps Payments Giant Stripe in New Developer Stack Launch
Decentralized storage platform introduces perpetual storage and community satellites
Polygon open-sources its Web3 ID solution
Decentralized Betting Protocol Thales’ Staking Model Deploys to Arbitrum
DeFi Protocol StaFi Nearly Halves Commission Fees for Staking
Chainlink launches web3 serverless developer platform to connect web2 APIs to web3
MakerDAO Reactivates Aave Deposit Module As DeFi Markets Recover
Lido Community Conducting Snapshot of V2 Upgrade Design Approval
0x Protocol's Token Surges 20% After DEX Partners With RobinHood, Polygon For Tx Relay
Solana proposes network upgrade changes following recent outage
Oasis To Patch Vulnerability That Allowed It To Recover $150M Of Stolen Crypto
About $650M in token unlocks scheduled for March
Optimism Challenges Arbitrum with ‘Superchain’
Arbitrum-Based FactorDAO Releases Staking Service, Developers Address Crypto Twitter Rumors
Optimism DEX Velodrome Generates Record Weekly Fees Following Coinbase Announcement
Solana Foundation Still Doesn’t Know What Caused Weekend Network Outage
DeFi Giant MakerDAO Rejects $100M Loan to Cogent Bank
Lido Finance activates staking rate limit after more than 150,000 ETH staked
Uniswap DAO debate shows devs still struggle to secure cross-chain bridges
STABLECOINS
Tether has no exposure to Silvergate, says CTO Paolo Ardoino
Three Japanese banks to issue compliant stablecoins on ‘Japan Open Chain’
Coinbase CEO Armstrong: We Delisted BUSD Due to Liquidity Concerns
20 global currency stablecoins to form International Standards Body
Coinbase lists Circle’s euro stablecoin, EUROC
MakerDAO’s Plan To Enable MKR As Collateral For DAI Draws Comparisons To UST
TrueUSD Becomes 5th-Largest Stablecoin as Binance Mints $130M TUSD in a Week
FDIC-insured Citizens Trust Bank to hold $65M in USDC reserves
CRYPTO ECOSYSTEM
Celsius Custody customers finally begin withdrawals 263 days after freeze
Gemini, Crypto.com, Bitstamp, MicroStrategy distance themselves from Silvergate
Block remains on the hunt for wallet partners nearly two years later
BridgeTower Capital to On-Ramp Lido, Offers Security Token for Avalanche’s Staking Rewards
Robinhood Wallet rolls out on iOS with Android support to follow
Celsius creditors tout NovaWulf deal as ‘best’ option
Crypto Bank Charter Firm Protego Trust Lays Off Most of Its Workforce: Source
Holdnaut co-founders opt to sell bankrupt crypto lender
FTX Survivor LedgerX Dumps Silvergate for Signature Bank: Report
Jack Dorsey’s decentralized Twitter rival enters app store
Wintermute researcher links wallet associated with UST depeg to Jane Street
Bitcoin-friendly Cash App integrates TaxBit amid tax-filing season
Crypto Custodian Finoa Gets License Approvals From German Regulator BaFin
DCG losses top $1B on the back of 3AC collapse in 2022
Crypto Lender Vauld Gets Further Extension for Restructuring Plan
Trezor takes the wheel of Model T chip production
Alchemy Launches Dapp Builder for the Next Billion Web3 Developers
NFTS / GAMING / METAVERSE
Binance’s AI-powered NFT generator hits 10K mints in 2.5 hours
SuperRare Co-Founder: We Remain Committed to NFT Artist Royalties
Magic Eden Launches 'Mint Madness' With Free Web3 Gaming Mints
Soulbound tokens power new identity solution on Celo blockchain
Gaming engine Unity adds MetaMask functionality among new Web3 tools
Starbucks’s web3 Odyssey is seeing early signs of success, BofA says
Bored Ape creators unveil Bitcoin Ordinals collection “TwelveFold”
NFT weekly trading volume on Ethereum rises to highest level since May
Blur’s stance on royalties is ‘insulting,’ Animoca Brands Chairman Yat Siu says
Colombia’s legal system experiments in the metaverse: Report
MINING
Bitcoin miner Riot reports rising output, triples hashrate in 2022
Core Scientific Bankruptcy Judge Set to Approve $70M Financing Deal From B. Riley
Marathon Digital bungles crypto impairment sums, will reissue financials
Mining difficulty up 9.95% with more machines coming online amid recent rally
Crypto mining facility integrates with web3 cloud computing infrastructure – GotGh #3
EXCHANGES
Binance.US responds to senators’ letter on “potentially illegal” activities
Binance ‘not planning any layoffs,’ 500 roles to be filled in H1
Binance Can’t Keep Its Story Straight on Misplaced $1.8B USDC
32,000 Voyager customers may be on the hook for bankruptcy clawbacks
Kraken Pulling Back From Using Signature Bank: Bloomberg
Indian exchange Bitbns admits it was hacked for $7.5M last February
Crypto.com and Gate.io Gained Most Traction after FTX Collapse, Study Shows
Voyager customers vote in favor of bankruptcy plan
Crypto Options Exchange Deribit to Offer Bitcoin Volatility Futures
Voyager agrees to reserve $445m after suit from Alameda Research
Kucoin and Huobi Are Accused in Report of Enabling Russian Banks to Break Sanctions
BitFlyer founder seeks to reinstate self as CEO, leading firm to IPO: Report
Indonesia Targets Mid-2023 for its State-Backed Crypto Exchange
CAPITAL RAISES
China Blockchain Conflux Gains $10M Investment From DWF
Crypto wallet ZenGo is raising funds at a flat valuation of $100 million
Cumberland Labs backed Hashnote launches regulated DeFi platform
Non-Custodial Liquid Staking Platform Ether.Fi Closes $5.3M Fundraise
Mangrove raises $7.4 million Series A to enable market makers to operate without locked capital
Blockchain Founders Fund raises $75M to encourage Web3 mass adoption
INVESTMENT MANAGEMENT
401(k) Provider ForUsAll to Offer Crypto Investments Into CoinDesk Indices Constituents
Hosts of Bankless Podcast Raising $35M Crypto Venture Fund: Sources
Digital Asset Investment Products’ AUM in February Reaches Highest Level Since May 2022
Figment Capital seeks $50 million for second venture fund: source
Hashed co-founder Alex Shin and investor Sandeep Ramesh to join Cheng’s web3 fund
Crypto Fund Manager Numerai's Token Rises Nearly 9% Amid Reports of Impressive Returns
Crypto Hedge Fund Arca VP of Portfolio Management Leaves
BitDAO’s Mantle Core proposes $200M for Web3 fund
Hedge fund titan Tapiero turns attention to new crypto PE venture, halts 10T fundraising
TRADFI / TECH
Banks’ direct exposure to crypto less than 1% of total – BIS report
Visa Executive Says Payments Giant Not Backing Away From Crypto, Despite Recent Reports
Tel Aviv Stock Exchange moves toward offering crypto trading
Breaking: Visa and Mastercard halt new crypto partnerships — Report
CBDC
Russian bank issues first on-chain bank guarantee in Chinese yuan
Australia Announces CBDC Pilot and Study for the eAUD
U.S. Treasury convening regular Biden administration discussions on CBDC
Bank of England official says digital pound provides big opportunity for businesses
China’s Digital Yuan Can Now Be Used to Pay Highway Toll Fees on Major Routes
IMF offers Jordan’s central bank recommendations for implementing retail CBDC
REGULATORY / COUNTRIES
SEC objection to Voyager-Binance.US deal questioned by US judge
SEC chair implies crypto exchanges may not be ‘qualified custodians’ as new rule is drafted
Sen. Elizabeth Warren and colleagues demand to see Binance’s balance sheets
DeFi to Go Under Microscope at US CFTC Advisory Group’s Opening Session
US SEC Plans to Keep Growing Crypto Unit as Enforcement Ramps Up
Legalizing Crypto Will Undermine Russian Financial System, Warns Central Bank
Puerto Rico Extends 4% Tax Incentive to Crypto and Blockchain Activities
France Moves Ahead With Tighter Crypto Rules for New Entrants
Grayscale to Argue SEC’s Inconsistency as Bitcoin ETF Dispute Heads to Court
Ripple asks SEC chair to recuse self from crypto enforcement cases
SEC chair Gensler confirms “everything other than Bitcoin” is a security: Implications and analysis
Robinhood Faces SEC Investigation Over Crypto Business
Illinois Officials Pushing State Crypto Licensing to Emulate New York’s BitLicense
FATF urges enhanced compliance with virtual asset standards to combat crypto-based crime
$1B Voyager-Binance Deal Benefits Halved if Alameda Loan Claim Succeeds: Texas Regulators
Banning Crypto 'Should Not Be Taken Off The Table': IMF
The IMF and the U.S. Support India's Plan to Coordinate Global Crypto Regulation at G20
Central African Republic’s Sango coin experiences deposit downtime
FATF agrees on roadmap for implementation of crypto standards
ENVIRONMENTAL, SOCIAL, GOVERNANCE
TeraWulf’s Nuclear Bitcoin Plant Is Just One Piece of the Green Mining Puzzle
Ukraine netted $70M in crypto donations since start of Russia conflict
SURVEYS, HACKS, MISC
BitKeep remains on track to fully compensate victims of $8M APK exploit
Trader makes error in XMON unlock strategy — loses 100% of trade in slippage
Blockchain Game The Sandbox Warns of Phishing Email After Security Breach
Arbitrum DEX ArbiSwap Rug Pulls Users for Over $100K
Notorious Monkey Drainer crypto scammer says they’re ‘shutting down’
Prosecutors’ Case Against FTX’s Sam Bankman-Fried Becomes Clearer
SEC, CFTC Charge FTX's Singh With Fraud Following Criminal Plea
Platypus Finance creates compensation portal for users following $9.1M exploit
Illuvium DAO voting to nix game with Su Zhu to avoid ‘scam by association’
MyAlgo users urged to withdraw, as cause of $9.2M hack remains unknown
Crypto Crime Hit All-Time High of $20.6B in 2022: Chainalysis
Coinbase survey indicates 20% of Americans own crypto
Platypus Finance says French police took suspected hackers into custody
DeFi Giant Maker Emerges Victorious as US Judge Dismisses $28M Lawsuit Filed Against It by Crypto Investors
Yield platform Stablegains sued for promoting UST: Finance Redefined