Exploit Exposes $52M Loss in Crypto: Curve Finance Pools Vulnerable
• Over $52 million was lost in Curve Finance pools due to a Vyper programming language reentrancy vulnerability.
• The US Senate passed a national defense bill which contains provisions targeting crypto mixers.
• Lawyers for the former FTX CEO Sam Bankman-Fried are seeking to seal documents related to an interview he gave The New York Times.
Crypto Exploited: Curve Finance Pools Drained of $52 Million
The cryptocurrency world has been rocked by an exploit in several stable pools on Curve Finance, with losses totaling over $52 million. This attack is believed to have been triggered by a malfunctioning reentrancy lock found in certain versions of the Vyper programming language. As a result, four liquidity pools on Curve were affected, including aETH/ETH, msETH/ETH, pETH/ETH and CRV/ETH. All remaining pools are safe and unaffected by this bug.
US Senate Passes National Defense Bill Targeting Crypto Mixers
The US Senate recently passed the 2021 National Defense Authorization Act (NDAA). This act includes a provision that targets anonymous cryptocurrency users who use “mixer” services that help obscure transactions on the blockchain. Under this new law, anyone caught using these services will face up to 10 years in prison or fines up to $250,000 for each violation. This provision is meant to make it easier for law enforcement agencies to track down criminal activity involving digital assets such as Bitcoin and Ethereum.
Lawyers Seek To Seal Documents Related To Sam Bankman-Fried Interview
The lawyers representing former FTX CEO Sam Bankman-Fried have filed motions in court seeking to seal documents related to an interview he gave The New York Times about his company’s activities with cryptocurrencies and derivatives trading products back in 2019. According to reports from Bloomberg Law, Bankman-Fried’s lawyers argued that if these documents were made public they would cause harm by revealing sensitive information about his firm’s trading strategies and proprietary algorithms used for price predictions for various assets such as cryptocurrencies and derivatives products like futures contracts and options contracts.
PeckShieldAlert Announces Exploit Update On Twitter
PeckShieldAlert took it upon itself to provide an update about the exploit on Twitter. They reported outflows of $13.6 million from Alchemix’s alETH-ETH pool, $11.4 million from PEGd’s pETH-ETH pool, $1.6 million from MetronomeDAO’s sETH- ETH pool and over 32 million worth of CRV tokens drained from the Curve DAO (CRV) pool over the past few hours with total losses estimated at around $52 million dollars across all impacted projects so far . In addition, BSC reportedly suffered copycat attacks with around 73K USD worth of cryptocurrencies stolen across three exploits .
Conclusion
This week has seen some major developments within the crypto space that could have major implications going forward into 2021 and beyond . A serious exploit occurred on Curve finance resulting in sizable losses , while also bringing attention once again towards issues surrounding security vulnerabilities present within smart contract code . Additionally , regulatory pressure is building both domestically through actions taken by US Senators as well as internationally through international organizations such as FATF . Finally , PeckShieldAlert provided updates regarding this exploit via twitter providing valuable insight into what happened during these events .
