Crypto Weekly Recap: SEC Sues Hex Founder; CZ Uncovers New Crypto Scam; Curve Hacker Returns Funds; and More (July 30 – 05 Aug. 2023)
Welcome to our latest edition of the weekly cryptocurrency news roundup, where we will uncover the most interesting updates from the crypto market from July 30th to August 5th, 2023.
The U.S. Securities and Exchange Commission (SEC) has been busy this week with a number of cryptocurrency-related news items. At least eleven firms are seeking SEC approval for an Ethereum Futures ETF; the SEC is investigating Richard Heart for issuing an unregistered token; and the SEC has denied Eeon’s legal involvement in Binance’s ongoing case.
In other news, July saw the worst crypto plunge of the year, with a $486 million loss due in part to a major exploit by Multichain. However, there is some good news: the mastermind behind the $61 million Curve Finance attack has returned $8.9 million.
Continue reading as we bring you up to speed on the most interesting cryptocurrency news this week!
CRYPTO NEWS RECAP: (JULY 30th to August 5th, 2023)
- More than 10 Companies filed for Ether futures ETFs, seeking SEC approval
- SEC files lawsuit against Hex Founder for unregistered securities
- SEC and Binance unite against Eeon’s lawsuit bid
- Binance’s CZ sounds the alarm on a new wave of crypto scams
- July sees crypto market’s worst plunge in 2023: $486 million loss, highest since 2022
- Curve Finance hacker returns $8.9 million amid protocol concerns
More Than 10 Companies Filed for Ether Futures ETFs, Seeking SEC Approval
At least 11 firms have filed with the SEC to launch Ethereum futures-based ETFs, in a rush that echoes the Bitcoin ETF fervor. The Volatility Shares Ether Strategy ETF, which is known for its 2x Bitcoin Strategy ETF, led the effort by submitting its own on July 28.
Others followed: Bitwise Ethereum Strategy ETF, VanEck Ethereum Strategy ETF, Roundhill Ether Strategy ETF, ProShares Short Ether Strategy ETF, ProShares Ether Strategy ETF, and the awaited Grayscale Ethereum Futures ETF.
The SEC has not yet approved Ethereum futures ETFs, but change is on the horizon. Approval would see ETFs live 75 days post-filing, starting with Volatility Shares on October 12.
SEC Files Lawsuit Against Hex Founder for Unregistered Securities
The U.S. Securities and Exchange Commission (SEC) has filed legal action against Richard Schueler, aka Richard Heart, alleging unregistered issuance of three tokens. According to the complaint, filed in a New York court on July 31, Heart amassed over $1 billion through unregistered sales of crypto securities, including Hex, PulseChain (PLS), and PulseX (PSLX).
Heart, accused of violating federal securities laws and defrauding global investors, reportedly promised extravagant wealth. Meanwhile, the SEC claims he diverted $12.1 million for personal purchases, like a 555-carat diamond and luxury cars.
SEC and Binance Unite Against Eeon’s Lawsuit Bid
In an interesting legal clash, the SEC and the Binance cryptocurrency exchange teamed up to oppose Eeon’s intervention in the SEC’s case against Binance. In the District of Columbia, the court witnessed both entities reject Eeon’s bid due to a lack of legal prerequisites. The SEC highlights Eeon’s history of failed self-representation in court cases and cites the Securities Exchange Act to deem Eeon’s request impermissible.
Binance further supports its position by citing three grounds for dismissal and standing united with the SEC in opposition to Eeon’s intrusion.
Binance’s CZ Sounds the Alarm on a New Wave of Crypto Scams
The CEO of Binance, CZ, has issued an urgent alert regarding a surging crypto scam in which fraudsters mimic wallet addresses to divert transactions, exploiting users. This technique involves crafting addresses resembling the victim’s and executing ‘dust transactions’ to imprint them in transaction history. If victims duplicate these, funds go to scammers.
CZ, however, endorsed blockchain domains, which resemble email addresses and can help thwart scams. He also advised users to be cautious and avoid copying addresses after repeatedly urging them to use strong passwords and enable two-factor authentication.
July Sees Crypto Market’s Worst Plunge in 2023: $486M Loss, Highest Since 2022
Cryptocurrency’s volatile market reached a low point in July when a DeFi report revealed a staggering $486 million loss – six times the previous year’s figure. The Multichain exploit accounted for nearly half the losses, draining $231 million.
Meanwhile, amid high-profile breaches, recovery efforts fell drastically short, reclaiming only $6.15 million of the $486.35 million lost. Ethereum suffered the most, losing $447 million across 36 cases, while access control issues contributed a majority of the $364 million losses.
Curve Finance Hacker Returns $8.9M Amid Protocol Concerns
In an unexpected turn of events, the hacker behind the $61.7 million Curve Finance attack is returning $8.9 million to the Alchemix and Curve teams. The attacker, who took advantage of a reentrancy bug, has begun a partial refund, citing a desire to preserve the integrity of the exploited protocols.
However, the Alchemix team announced on August 5 that all funds stolen by the hacker from the Alchemix pool have been returned. They also stated that a full postmortem is coming.
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