Cryptospace Spotlight #38 (18 Sep 2022) - Ethereum completed the Merge and now PoS, New Free DAO was drained $1.25M, White House releases framework for responsible development of digital assets
Ethereum is now on PoS and estimate to use 1% of PoS consumption, New Free DAO lost $1.25M through a flash loan attack, and White House outlines direction of responsible development of digital assets!
Security and Risk
The attacker manipulated NFD’s “addMember()” function to add himself as a member, which gave him access to use the unverified contract to execute flash loans.
The attacker then created multiple new contracts and repeated the process to claim rewards. The attacker then repaid the flash loan, i.e. 250 WBNB, to PancakeSwap and made a profit of 2952 WBNB.
The attacker executed the transaction 3 times in total and made a profit of 4481 WBNB, which is approximately $1.25 Million.
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The latest framework dedicates a section to fighting illicit finance, highlighting the May crash of Terra’s algorithmic stablecoin and the subsequent wave of insolvencies that wiped out roughly $600 billion of investor funds. And may evaluate whether to amend the Bank Secrecy Act and other laws against unlicensed money transmitting to apply explicitly to digital asset service providers, such as exchanges and NFT platforms.
The Securities and Exchange Commission’s Division of Corporation Finance to add a new Office of Crypto Assets. [more]
The Office of Crypto Assets will review filings involving crypto assets. SEC noted that this will enable better focus its resources and expertise to address the unique and evolving filing review issues related to crypto assets.
Ethereum has completed the Merge, and now on Proof-of-Stake consensus. [more]
Ethereum should now consume 99.9% or so less energy. It's like Finland has suddenly shut off its power grid, according to one estimate.
Despite the success on the Ethereum’s much-anticipated merge, which saw the network flawlessly transition to proof of stake, ETH has plummeted some 18.5% in the last three days alone. [more]
And, Ethereum fork ETHPoW gets off to rocky start. [more]
64% of staked ETH controlled by five entities. [more]
Three major cryptocurrency exchanges account for nearly 30% of staked ETH, namely Coinbase, Kraken and Binance. Lido DAO, the biggest Merge staking provider, accounts for the largest amount of staked ETH with a 31% share, while a fifth unlabelled group of validators holds 23% of staked ETH.
Ethereum engineering firm Infura aims to create a Decentralized Infrastructure Network to launch sometime next year. [more]
Infura's "Decentralized Infrastructure Network" will seek to do away with outages on Ethereum due to a "single point of failure."
Filecoin’s vision is to be more resilient and user-controlled than the AWS. It wants Filecoin to be “more than just storage, one can think of it as an Airbnb for cloud services.” [more]
At the beginning of 2021, Filecoin was a relatively unknown decentralized peer-to-peer storage service. Less than 2 years later, the Filecoin team claims the blockchain has grown to eclipse 10% of the storage capacity of Amazon Web Service, the most popular vendor in the cloud infrastructure services market.
A South Korean court has issued an arrest warrant for Terraform Labs founder Do Kwon, some four months after the ecosystem’s implosion. [more]
Arrest warrants were issued to other employees, including Nicholas Platias, a former head of research at Terra, and staff member Han Mo. All three are believed to be currently residing in Singapore.