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Blockchain Bites: Big Bitcoin Bets, SushiSwap Drops, bZx Attacked

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  • Blockchain Bites: Big Bitcoin Bets, SushiSwap Drops, bZx Attacked

    Hackers hit DeFi protocol bZx again, derivatives traders have placed bets bitcoin will hit $30,000 by year’s end and the latest twist in the SushiSwap saga.

    Top shelf

    Hacked again
    Decentralized finance (DeFi) protocol bZx is the victim of yet another hack – this time costing nearly $8 million. On Sunday, an unnamed attacker apparently tricked bZx into minting iTokens, an interest-earning token that allows users to redeem crypto in the protocol’s lending pools, cashing them out for nearly 220,000 LINK tokens, 4,507 ETH, 1.76 million USDT, 1.4 million USDC and 670,000 DAI, CoinDesk’s Paddy Baker reports. Early this year, attackers drained nearly $1 million from the protocol in two separate attacks – raising questions over a DeFi feature called “flash loans.” The latest bug apparently passed through two audits performed by security firms Certik and Peckshield. bZx co-founder Kyle Kistner said the drained funds will be covered by the protocol’s insurance fund, pending community ratification.

    In a late breaking twist, a spokesperson said bZx was able to track down the attacker using his or her on-chain activity and that the funds were returned as soon as that person was exposed.

    Red flags
    The Financial Action Task Force (FATF), an international standards-setting body followed by 200 nations, has recommended regulators profile cryptocurrency users so they can better identify criminal activity. In a Monday report, FATF said regulators should keep an eye out for suspicious behavior including swapping publicly tracked cryptos for privacy coins like monero or zcash, skirting KYC/AML checks and transactions that fall just below the Travel Rule threshold, CoinDesk’s Paddy Baker reports. The watchdog also said a discrepancy between a trader’s transaction history and known wealth is a red flag.

    Auto crisis
    Iran may use crypto to fund car imports. Gholam Hossein Mozaffari, CEO of the Kish Free Zone Organization, has queried the nation’s central bank about using cryptocurrencies mined on Kish Island to beat hyperinflation and international sanctions. “If the central bank allows this, it [would be] possible to import cars with digital currency for these three free zones, and the car problem can be solved,” Mozaffari said, according to ArzDigital. In recent months, Iran has loosened regulations to permit crypto mining under certain circumstances.

    Diamond ring?
    Prosecutors have charged a Washington, D.C., man with running a crypto-backed diamond investment ponzi scheme. Jose Angel Aman was charged with wire fraud on Friday for his alleged role in soliciting $25 million from hundreds of investors to fund a scheme where he and his cadres promised to buy and flip diamonds. Court documents say Aman “rarely” used investments as promised, instead funding a lavish lifestyle and to pay interest to earlier investors. Prosecutors further allege Aman launched a purported diamond-back cryptocurrency called Argyle Coin to solicit more funds as the scheme neared collapse.

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