The decentralized finance (DeFi) ecosystem had a challenging week as a major security incident resulted in the theft of over $61 million from Curve Finance’s pools. This attack exposed vulnerabilities in DeFi projects and raised concerns about the broader contagion risks facing the industry. As the community grapples with the aftermath of the exploit, here is a timeline of events since the hack on July 30.
The United States Department of Justice (DoJ) is reportedly considering charging cryptocurrency exchange Binance with fraud. However, officials are hesitant to do so due to concerns about a potential run on the exchange, similar to what happened with FTX in 2022. The DoJ is weighing options such as fines or non-prosecution agreements to minimize harm to consumers. Binance is already facing a criminal probe for violating U.S. sanctions on Russia and has been targeted by lawsuits from regulators.
Hong Kong has expanded its cryptocurrency trading to individual investors, allowing digital asset firm HashKey to serve retail users. HashKey has obtained the necessary licenses to operate a virtual asset trading platform and provide automated trading services to institutional and retail users. Another local crypto firm, OSL, has also upgraded its license to offer Bitcoin and Ether trading to retail investors immediately. These developments signal the growing acceptance and accessibility of cryptocurrencies in Hong Kong.
Coinbase, the popular cryptocurrency exchange, has denied reports claiming that its CEO, Brian Armstrong, was told by the U.S. Securities and Exchange Commission (SEC) to delist all cryptocurrencies on its platform except for Bitcoin. The report lacked context, according to a Coinbase spokesperson, and the SEC did not specifically request the delisting of any assets. SEC Chair Gary Gensler has previously stated that “everything other than Bitcoin” falls under the agency’s jurisdiction as a security.
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The Ethereum network celebrated its eighth birthday, marking eight years since its launch by the Ethereum Foundation. Ethereum has grown to become the second-largest cryptocurrency with a market capitalization of $225 billion. It has over 1,900 monthly active developers and has revolutionized the crypto industry with its vision of a censorship-proof “world computer.”
In terms of market performance, Bitcoin is currently priced at $28,985, Ether at $1,823, and XRP at $0.63. The total market capitalization is $1.16 trillion. Among the top 100 cryptocurrencies, the biggest gainers of the week are Helium, XDC Network, and Bone ShibaSwap, while the biggest losers are Compound, Curve DAO Token, and Stellar.
Looking ahead, traders believe that Bitcoin has not yet seen the majority of its gains this cycle. Despite a month of sideways trading and expectations of a potential drop to $25,000 or lower, analysts argue that conditions have been reset, indicating that the biggest upside moves are yet to come. Other developments include a conspiracy theory suggesting that FTX founder Sam Bankman-Fried may be secretly behind the controversial Bald memecoin and the admission by an individual of hacking cryptocurrency exchange Bitfinex in 2016.
Overall, it has been a challenging but eventful week in the crypto industry, with significant developments in DeFi, regulatory concerns, and market performance. The aftermath of the security incident in DeFi will likely shape the future of the industry as efforts are made to recover stolen funds and improve security measures.
