What is a flash crash in Bitcoin, and why does it matter?
What is a Bitcoin flash crash? A Bitcoin flash crash is a sudden, sharp plunge in the market price of BTC that only lasts a short period of time before prices start to normalize. The appearance of unique market conditions causes a jolt in the leading cryptocurrency’s market price. Typically, the reason behind a flash crash is a large group of sellers (called whales) deciding to sell Bitcoin (BTC) suddenly and flood the market with supply. This overwhelms buyers and can erase billions from the market in minutes. The fact that BTC flash crashes have still occurred in recent years highlights the continued crypto volatility risks, even with a robust crypto asset like BTC. Despite crypto’s multitrillion-dollar market status, it is still maturing. Particularly for newer investors in the space, it is critical to understand BTC price crashes and why they happen. Without this knowledge, watching an event like this unfold can be devastating and lead to badly judged emotional trading decisions rather than insightful, profitable investing.Did you know? Traditional stock markets have built-in circuit breakers where trading is temporarily halted when an asset or index moves a certain amount. BTC markets do not have these circuit breakers, so it’s hard to control rapid market declines. How does a Bitcoin flash crash occur? The speed and severity of a flash crash can often be hard to understand. For the average investor, it sparks terror and perhaps confirms their deepest fears of their crypto stash becoming worthless. But with a calm head, the “tripwire” for a BTC crash is usually tied to a certain combination of interconnected factors. Let’s take a look at how flash crashes happen:Liquidation of leveraged positions when markets move unexpectedly. If leveraged traders can’t maintain their collateral during a big market drop, exchanges automatically sell their position to pay off the loan. When this happens on a large scale, it sends a wave of selling pressure through the market, crashing prices along the way.Algorithmic trading errors can cause a cascade of sell orders. Many traders use computer programs with preset rules. When these systems react to unusual market conditions, the trading bots can start selling aggressively. This then has a knock-on effect, sending sell signals and causing a chain reaction of automatic selling. Low market liquidity makes prices more sensitive to large trades. Think of this as far more active sellers than buyers. For BTC, it’s more prevalent on smaller exchanges where someone wants to sell a large amount quickly. They exhaust the available buy order immediately and cause a sudden BTC drop.Technical glitches in exchange infrastructure can cause trading to break down. It could be from servers going offline, data feeds freezing or order matching failing. This can lead to incorrect pricing displays and orders executing at extreme prices. Panic selling regularly occurs during scary news events. As the old trader’s saying goes, “Buy the rumor, sell the news.” When bad news breaks, markets could panic and everyone sells simultaneously, overwhelming buyers and sending prices plummeting.Did you know? In December 2024, BTC finally breached the elusive $100,000 mark but then tumbled back down to $94,000 within hours. In the process, over 200,000 traders were liquidated, causing losses of over $1 billion. Benefits of a Bitcoin flash crash The unfurling of a crypto market crash sends an icy stab through most investors’ bodies; of course, they are highly unfavorable market conditions in most scenarios. But once you’ve gotten over the initial shock, there can be some hidden benefits to explore. Exceptional buying conditions: While destructive for panicked investors, for those who are prepared, it offers a golden buying opportunity to buy BTC at a substantially discounted price. Market stress test: Assuming there is a quick recovery, these types of events serve as a stress test to get valuable insight into how markets react under extreme circumstances. Improved industry practices: It provides a learning opportunity for platforms like crypto exchanges to understand what went wrong and improve their infrastructure to avoid incidents in the future.Increased investor protection: Flash crashes attract the attention of mainstream media and regulators. This focus can be a catalyst for better regulation and protection for retail investors.Did you know? Despite its reputation for crashes and volatility, BTC now shows signs of becoming a mature asset. It can be less volatile than many well-known securities, such as the “Magnificent 7,” which includes Nvidia, Meta, Tesla and others. Examples of Bitcoin flash crashes There have been several BTC flash crashes since the cryptocurrency was launched in 2009. Some of the biggest exchanges have seen prices evaporate in minutes, and market-wide crashes have left investors grappling with wiped-out portfolios. On June 19, 2011, the infamous Mt. Gox exchange was exposed to a database hack and compromised accounts. BTC’s price was pulverized from $17 down to $0.01, almost valueless. It was an early setback for Mt. Gox and BTC’s reputation, but it exposed early exchange vulnerability and showed the need for more robust infrastructure. More recently, on March 18, 2024, BTC flash crashed on BitMEX. While other exchanges were trading at over $60,000, the price on BitMEX crumbled down to $8,900. It all happened in just two minutes, but the recovery was swift, with prices rebounding to normal levels within 10 minutes. In addition, BTC-EUR prices on Coinbase briefly crashed from €63K to €48K, sharply diverging from other markets, as reported by Kaiko Research.CryptoQuant’s head of research, Julio Moreno, commented on the flash crash that saw Bitcoin briefly drop to around $88,800 on December 5, 2024. According to him, the flash crash was driven by a sell-off cascade and deleveraging in the BTC futures market, with open interest dropping as leveraged long positions were liquidated.COVID-19 was also responsible for a market-wide crash in March 2020 when the world’s most widely held crypto slid 50% in two days. The price collapsed from over $9,000 to below $4,000. It then took two months for market prices to return to previous levels. How to protect against a Bitcoin flash crash in the future Flash crashes are almost impossible to accurately predict. When they strike, things happen quickly. Usually, the damage is done before a human can react, particularly when positions are liquidated and trading bots react to sell signals. But it is still possible to prepare and protect yourself against the fallout. Set up price alerts at key technical levels: This will help to alert you to unnatural market conditions so you are not caught off guard. Use leverage lightly; flash crashes burn highly leveraged traders instantly. So, don’t overexpose yourself to highly leveraged market positions.Learn to use a stop loss to protect capital. This enables you to sell your position early on in a crash, although they’re not foolproof, as a flash crash can fly past a stop loss in the worst cases. Keep spare capital in reserve to give you the ability to capitalize on low market prices when they arrive.Don’t keep the bulk of your holdings in an exchange account. Crashes can put platforms under severe financial stress, so try to self-custody your assets.As learned, flash crashes happen fast and can wipe out positions in seconds, especially for leveraged traders. Keeping a diversified portfolio, setting stop-loss orders and only investing what you can afford to lose are simple but effective ways to reduce risk during sudden market drops.
Russian crypto exchanger Mosca raided amid cash-to-crypto ban talks
As the Russian government is considering a ban on cash-to-cryptocurrency transactions, some major local crypto exchange platforms have encountered police raids.Mosca, a crypto-to-cash exchange located in the Moscow International Business Center, was raided on April 23 in connection with fraud by one of its customers, Dmitry Titarenko, Mosca’s development head, confirmed to Cointelegraph.“Law enforcement agencies have carried out a standard procedure of checking our customer data,” Titarenko told Cointelegraph at the local crypto event Blockchain Forum 2025.Mosca’s office raid followed online reports linking several arrests of some Mosca customers with an alleged crypto robbery involving a victim reportedly giving fraudsters a massive cash deposit worth millions of dollars.Cash-to-crypto ban to protect investors?Mosca’s confirmed police raid came the next day after Evgeny Masharov, a member of the Russian Civic Chamber, proposed banning crypto exchangers from accepting cash from their customers to buy cryptocurrencies like Tether USDt (USDT).A potential ban on cash-to-crypto transactions would be a “massive blow to fraudsters,” Masharov urged, adding that phone scammers are “often using crypto exchangers for withdrawing cash funds.”Olga Serova, a former adviser to the head of the government of Samara region, claims to have lost up to $5 million to crypto fraudsters. Source: BazaSubsequently, local news channel Baza reported on the Mosca’s raid, linking the event with a “record-breaking fraud” against Olga Serova, a former government adviser in Russia’s Samara region.Serova, 71, reportedly fell victim to scammers in late 2024, cashing out her bank accounts to pass the fraudsters an estimated total of 421 million Russian rubles ($5.1 million). According to Baza, at least seven people were arrested, allegedly in connection with the case.Mosca clients can buy up to 100,000 USDT with cash dailyMosca, which allows investors to deposit up to 100,000 USDT ($100,000) daily, is not aware whether Serova’s incident was connected to its office raid on Wednesday, Titarenko said.“Maybe it was another client,” he noted, adding that the raid was the first criminal case-related office raid at Mosca in the past three months.Titarenko also mentioned that Mosca has been actively beefing up its Anti-Money Laundering and Know Your Customer checks, including maintaining a blacklist of suspicious users.Related: Russia’s central bank, finance ministry to launch crypto exchangeThe raid caught Mosca during a major local event, Blockchain Life, returning to Moscow for the first time since October 2021. The company was one of the main guests at the conference, taking two center stands and winning a title of the “best crypto exchange service.”One of Mosca’s stands at the Blockchain Forum 2025. Source: CointelegraphAccording to Sergey Mendeleev, a prominent figure in the Russian crypto community, the proposal to ban cash-to-crypto transactions is an alarming development for the community.Speaking at the event, Mendeleev suggested that the Russian government might be turning away from crypto adoption if it opts to approve such a ban.He also mentioned that raids are a common situation for crypto exchange services located at the Moscow International Business Center, also known as Moscow City.Garantex, a crypto exchange that halted trading after Tether froze $27 million in USDT due to sanctions, was also among the exchangers located in Moscow City.Magazine: Pokémon on Sui rumors, Polymarket bets on Filipino Pope: Asia Express
Arkansas city rejects crypto mining proposal after community pushback
The planning commission of Vilonia, Arkansas, unanimously rejected a proposal to establish a cryptocurrency mining facility within the city limits, following strong opposition from residents.According to local reports, the decision came after weeks of community pushback, where citizens voiced concerns over potential noise pollution, increased energy consumption and the overall environmental impact associated with crypto-mining operations.During public meetings, Vilonia residents expressed concern that the mining operation could disrupt the town’s quiet atmosphere and strain local infrastructure.Many pointed to examples from other regions where similar facilities led to rising electricity costs and constant noise from mining rigs.“I just want to ask, like, did we make a mistake moving here? We’re not asking these people to come here. I grew up here. I graduated from Vilonia, and we [are] Arkansas, the natural state, not Arkansas, the Bitcoin state,” one community member told THV11.Vilonia community members oppose a new crypto mine in their town. Source: YouTubeRelated: Crypto startups no longer welcome in Nvidia’s accelerator programVilonia has a history of rejecting crypto miningVilonia has confronted the prospect of crypto mining before. In previous years, residents expressed disinterest in hosting miners, citing long-term sustainability concerns and minimal local economic benefits.In 2023, the city’s planning commission denied Vilo AR permission to build a crypto mine in town and revoked its permit permanently.The same year, Vilonia residents voiced strong opposition to a crypto-mining facility proposed by Green Digital near residential areas, citing concerns over constant loud noise from powerful mining computers and potential ties to the Chinese Communist Party.In 2024, the Arkansas State House passed two bills that restrict cryptocurrency mining within the state.Related: Bitdeer turns to self-mining Bitcoin, US operations amid tariff tumult — ReportIn January, Arkansas lawmakers introduced a bill that would ban crypto mining operations within 30 miles of any US military facility in the state.Senate Bill (SB 60) was introduced by Senator Ricky Hill and House Speaker Brian Evans, aiming to amend the Arkansas Data Centers Act of 2023 to keep crypto mining facilities away from military installations. However, the Arkansas Senate’s City, County and Local Affairs Committee eventually rejected the bill.The opposition to crypto mining centers in Arkansas follows a broader trend across various US municipalities where crypto-mining initiatives have faced increasing scrutiny.In October 2024, a group of residents in Granbury, Texas, filed a lawsuit against Marathon Digital, alleging that its mining facility generated too much noise.The lawsuit claimed that residents were experiencing physical symptoms from the noise, including fatigue, headaches, nausea, hearing loss, memory issues and even psychological problems.Magazine: Crypto AI tokens surge 34%, why ChatGPT is such a kiss-ass: AI Eye
Bitcoin is holding above $90K, so why is ‘greed’ sentiment slipping?
Key takeaways:Crypto market sentiment hit a two-month high with the Crypto Fear & Greed Index returning to “Greed” territory on April 23. Despite Bitcoin’s price hold, the sentiment score is gradually declining, and analysts are expressing doubt over the rally’s sustainability.The crypto market remains Bitcoin-heavy, with its dominance above 64%, strong ETF inflows and a low altcoin season score.Bitcoin’s several-day surge above $90,000 pushed crypto market sentiment to its highest point in more than two months on April 23, but it’s gradually tapering off again as analysts air concerns about the sustainability of Bitcoin’s rally.On April 23, the Crypto Fear & Greed Index clocked a score of 72 out of 100, putting it in the “Greed” zone as Bitcoin (BTC) returned above the $90,000 level. However, as of April 25, the score has fallen to 60 despite the relatively stable price. Crypto sentiment at two-month high The last time the index hit this score was on Feb. 4, around the same time US President Donald Trump introduced tariffs and Bitcoin fell below $100,000. Bitcoin has since reclaimed the $90,000 price level for the first time since March 6. Bitcoin is trading at $93,130 at the time of publication. Source: CoinMarketCapHowever, despite Bitcoin trading between $91,800 and $94,304 over the past two days, sentiment within the “Greed” territory has been gradually cooling off, with the index falling to April 24 and 60 on April 25.The slight pullback follows warnings from several crypto analysts who remain cautious about the Bitcoin rally, including 10x Research’s head of research, Markus Thielen, who isn’t yet convinced of a rally.“Given that our stablecoin minting indicator has yet to return to high-activity levels, we remain cautious about the sustainability of the current Bitcoin rally,” Thielen said on April 23.Meanwhile, Bitfinex analysts said on April 24 that while Bitcoin’s relative strength against US equities “appears real,” it is yet to be confirmed as structural.However, others are more bullish. MN Trading Capital founder Michaël van de Poppe said on April 24 that “buyers are likely going to step in, and then we’ll be continuing our path toward a new [all-time high].”Related: Bitcoin ‘short squeeze’ or $87K dip next? BTC price predictions varyCoinMarketCap’s altcoin season index indicates that the market is still heavily favoring Bitcoin over altcoins, with the altcoin season score sitting at a lowly 17 out of 100. It comes as Bitcoin Dominance is sitting at 64.39%, according to TradingView data.Bitcoin sentiment has gained momentum since it touched the mid-$80,000 price range. On April 17, crypto analytics firm Santiment pointed out that the tone of Bitcoin-related social media posts has flipped to bullish.Meanwhile, crypto analyst Trader T pointed out in an April 25 X post that US-based spot Bitcoin ETFs have, so far to April 24, seen their third-best week of inflows since launching in January 2024. Over the past four trading days, the spot Bitcoin ETFs have seen $2.6 billion in net inflows.Magazine: Pokémon on Sui rumors, Polymarket bets on Filipino Pope: Asia ExpressThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
White House receives over 10,000 comments on AI development plan
The White House said on April 24 that it received more than 10,000 public comments on its planned artificial intelligence action plan, indicating widespread interest in the technology as the global race for AI leadership accelerates.Among the stakeholders providing inputs were AI giants such as OpenAI, Meta, Amazon, Google, and Microsoft. In addition, organizations in academia, non-profits, and industry associations also took part in the discussion.A preliminary review of comments from major private-sector companies highlighted several recurring themes, including the need for greater investment in US energy resources to support AI growth, foreign policy efforts to enhance the global influence of American AI firms, and improved infrastructure to advance AI development domestically.Excerpt from Meta’s comments. Source: NITRDIn addition, many companies lobbied for an open, innovative framework to guide the American AI industry and provide safeguards to individuals. The White House issued a request for comments on Feb. 6. The administration says these comments “will help define the priority policy actions needed to sustain and enhance America’s AI dominance.” US President Donald Trump has pledged to make the United States the “world capital” of AI and crypto.National security concerns National security emerged as a key concern among companies submitting feedback. Venture capital firm Andreessen Horowitz wrote that “AI model development is an issue of national concern that should be regulated on a national level. It is critical to American national security, geopolitical objectives, and the nation’s economic and social welfare.”OpenAI also raised the issue, explicitly naming China as a competitor with “strategic advantages,” including the capacity, as an “authoritarian state,” to rapidly mobilize resources.In January 2025, Chinese company DeepSeek launched their R1 model, sparking alarm in the US tech sector and triggering volatility in domestic equity markets.AI and crypto are widely viewed as two of the most transformative emerging technologies, with growing overlap of AI-powered agents and digital financial products.Magazine: AI Eye: ‘Chernobyl’ needed to wake people to AI risks, Studio Ghibli memes
SEC delays decision on Polkadot ETF
The US Securities and Exchange Commission (SEC) has delayed a decision on whether to approve a proposed exchange-traded fund (ETF) holding Polkadot’s native token, regulatory filings show. According to an April 24 filing, the regulator has extended its deadline for a final ruling until June 11, nearly four months after the Nasdaq sought permission to list Grayscale Polkadot Trust on Feb. 24. Grayscale’s ETF filing adds to a roster of roughly 70 proposed ETFs awaiting SEC approval, including funds holding altcoins, memecoins, and crypto-related financial derivatives, according to Bloomberg Intelligence. Asset managers are pitching ETFs for “[e]verything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between,” Bloomberg analyst Eric Balchunas said in an April 21 post on the X platform. Asset manager 21Shares is also awaiting permission to list its own Polkadot ETF.Polkadot is a layer-1 blockchain network launched in 2020. Its native token, DOT (DOT), has a market capitalization of approximately $6.6 billion as of April 24, according to CoinMarketCap.Polkadot’s price over time. Source: CoinMarketCapRelated: Institutions break up with Ethereum but keep ETH on the hookAltcoin ETF pipelineGrayscale is among multiple asset managers seeking regulatory clearance to list altcoin ETFs in the US. The company is already behind several crypto funds, including spot Bitcoin (BTC) and Ether (ETH) ETFs. The asset manager has also asked for permission to launch ETFs holding tokens such as Solana (SOL), Litecoin (LTC), XRP (XRP), Dogecoin (DOGE), and Cardano (ADA).Crypto ETFs scheduled for SEC review. Source: Eric Balchunas/BloombergThe pipeline of proposed fund listings comes as more than 80% of institutional investors say they plan to boost allocations to crypto in 2025, according to a March report by Coinbase and EY-Parthenon. However, analysts caution that demand for altcoin ETFs is likely to be much more limited than for funds holding core cryptocurrencies such as Bitcoin and Ether. “Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services,” Balchunas said. “Doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest, April 13 – 19
Ethereum's L2 approach equals many high-throughput chains — Avail exec
Ethereum’s focus on scaling through many layer-2 networks, each with its own transaction processing speed and parameters, potentially gives the network an unlimited number of unique high-throughput chains, according to Anurag Arjun, co-founder of Avail, a unified chain abstraction solution.In an interview with Cointelegraph, Arjun acknowledged that Ethereum and high-throughput competitors with monolithic architecture are fundamentally different products. However, Ethereum’s choice to scale through a plethora of L2 solutions gives it an overlooked quality:”The under-appreciated beauty of this rollup-centric roadmap architecture is that it allows multiple teams to experiment with different execution environments and different block times.”This allows a diverse set of high-throughput sidechains to appear rather than just one singular architecture on any monolithic layer-1s, the executive added. However, without true interoperability, switching between L2s will remain as complex as bridging assets between different blockchain ecosystems altogether, Arjun warned.An overview of Ethereum’s layer-2 ecosystem. Source: L2BeatThe Avail co-founder’s perspective runs contrary to the many critics of Ethereum’s L2-focused approach, who say that the network’s scaling solutions silo liquidity and are ultimately corrosive to the base layer. Ethereum’s critics argue that L2s are one of the primary causes of Ether’s (ETH) poor price performance in the last year.Related: Vitalik Buterin proposes swapping EVM language for RISC-VEthereum fees drop to five-year lowsFees on the Ethereum layer-1 network dropped to five-year lows in April 2025, with the average transaction fee sitting at around $0.16.According to Brian Quinlivan, the marketing director for the Santiment onchain analytics firm, the reduction in fees signals decreased demand for the base layer and waning investor interest in Ethereum.Ethereum network daily transaction fees dropped significantly in Q1 2025. Source: Token Terminal”This large reduction in fees coincides with fewer people sending ETH and interacting with smart contracts,” Quinlivan wrote in an April 16 blog post.These smart contract interactions include transactions across decentralized finance, digital collectibles like non-fungible tokens (NFTs), and other digital asset sectors, the Santiment executive added.Ether’s declining base layer transaction fees and reduced retail interest also caused many institutional investors to slash their Ether allocations and issue revised price outlooks for the second-largest digital asset by market capitalization.Magazine: Make Ethereum feel like Ethereum again: Based rollups explained
Revolut doubles profits to $1.3B on user growth, crypto trading boom
Fintech giant Revolut reported a record-breaking year, doubling its pre-tax profit to 1 billion British pounds ($1.3 billion) in 2024, driven by rapid customer growth and a resurgence in cryptocurrency trading.According to its annual report published on Thursday, April 24, Revolut’s profit soared from 438 million pounds in 2023, while revenue jumped to 3.1 billion pounds from 1.8 billion pounds.A key contributor to Revolut’s strong performance was its wealth division, which includes stock and digital asset trading. The segment generated 506 million pounds in revenue — nearly four times higher than in 2023 — as crypto trading activity rebounded.Revolut’s increasing profit. Source: RevolutRevolut added nearly 15 million new users in 2024, pushing its total customer base past 50 million. This expansion boosted revenue from card payment fees and interest on deposits, the fintech’s two largest income streams.Founder and CEO Nik Storonsky said in the report that “2024 was another landmark year for Revolut, with continued growth across all key business areas.”Related: Pyth partners with Revolut for real-time digital asset dataRevolut receives long-awaited UK banking licenseStoronsky noted that the company obtained a long-awaited UK banking license in 2024, which was secured in July after a three-year regulatory process.The license paved the way for Revolut to expand its lending services, including credit cards, buy-now-pay-later products and potentially mortgages, which the company confirmed are currently in testing.“We received a UK banking license (with restrictions), paving the way for future product enhancements in our home market,” Storonsky said.In May 2024, Revolut introduced Revolut X, a dedicated desktop crypto exchange targeting experienced traders. The platform offers trading for 100 tokens with low fees and real-time on/off-ramp capabilities, with plans to expand to mobile in 2025.In November, Revolut expanded its crypto exchange in Europe, rolling out Revolut X in 30 markets across the European Economic Area (EEA), including Belgium, Cyprus, Denmark and others.Revolut launches new products. Source: Revolut.Revolut continued to expand its digital asset services during the year, offering customers access to cryptocurrencies alongside other investment options like stocks, ETFs, bonds and commodities within its app ecosystem, per the annual report.Related: Revolut and Ledger wallet enable new crypto rails in EEARevolut struggles to attract banking customersDespite its growth, Revolut faces challenges in converting users of its popular app into primary banking customers.Growing deposit volumes remain critical for funding future lending operations and competing with established retail banks. In 2024, total customer balances rose to $39.8 billion from $23.9 billion.Revolut is also focusing on expanding its premium subscription base, with revenue from paid plans climbing 74% year-on-year to 423 million pounds, per the report.Additionally, its business services arm now accounts for 15% of total revenue, reflecting efforts to diversify income streams beyond retail banking.Looking ahead, Storonsky said Revolut intends to reach 100 million daily active users across 100 countries.Magazine: Ethereum maxis should become ‘assholes’ to win TradFi tokenization race
DeFi platform KiloEx to compensate users impacted by $7.5M hack
Decentralized exchange (DEX) KiloEx announced that it will compensate traders and stakers affected by a $7.5 million exploit that temporarily shut down the platform earlier in April.In an April 24 announcement, KiloEx said traders who had positions open while the platform was suspended would get full compensation if their losses increased or profits decreased. The platform said it would pay the difference. KiloEx urged traders to close their positions immediately once the platform resumes operations, as delaying could affect their profit and losses, which may then impact the compensation amount. “Please close your position as soon as possible after the platform resumes. Compensation will be calculated based on the platform’s resume time,” KiloEx stated. Source: KiloExStakers’ principal and earnings remain unaffectedFor the platform’s Hybrid Vault stakers, KiloEx said that the stolen funds were fully reinjected into the vault. As a result, staker earnings and principal will remain unaffected. However, KiloEx said it will still provide an additional 10% annual percentage yield (APY) as a bonus for eligible stakers.The bonus APY will be awarded to users who had funds in the vault prior to the platform’s resumption.On April 15, KiloEx offered a 10% bounty to the hacker who stole the funds from the platform. The DEX said that the hacker could keep $750,000 as a white hat bounty if they decide to return 90% of the stolen funds. The platform threatened to expose the hacker’s identity and take legal action if they did not comply. Shortly after, security platforms flagged transactions indicating that the KiloEx hacker returned the stolen funds. On April 18, the DEX said it would withdraw all legal action against the hacker and reward them with a 10% white hat bounty. Related: Mantra OM token crash exposes ‘critical’ liquidity issues in cryptoKiloEx hacker exploited a price oracle vulnerabilityOn April 14, KiloEx suspended its platform after containing the exploit that led to $7.5 million in losses. Security firm PeckShield said the attacker likely exploited a price oracle vulnerability that allowed them to inflate the prices to gain more profit than they should have. In a post-mortem published by KiloEx, the platform confirmed that the attacker exploited a permissionless function. The DEX said the attacker crafted a request that only authorized entities should have been able to do. Using this, the attacker opened a position at an “artificially low price.” This was followed by closing the position at a higher price, providing illegitimate profits to the attacker. Magazine: Ethereum maxis should become ‘assholes’ to win TradFi tokenization race
Alabama drops staking lawsuit against Coinbase
The Alabama Securities Commission, a financial regulator for the US state, dropped its lawsuit against crypto exchange Coinbase, which accused the company of violating securities laws by offering staking services to clients.The regulator cited the ongoing work between the US Securities and Exchange Commission (SEC) and the crypto industry to develop clear crypto regulations as the primary reason for dropping the litigation, according to the April 23 legal filing shared by Coinbase’s chief legal officer, Paul Grewal.The filing read:”The SEC has announced the formation of a new task force to, among other things, provide guidance for the promulgation of rules regarding the regulation of cryptocurrency products and services.””Due to the foregoing, the Commission believes it would be apt to allow policymakers time to consider regulatory constructs,” the filing continued.The Alabama Securities Commission filed its lawsuit against Coinbase in June 2023, alongside state regulators from California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin.The Alabama Securities Commission dismisses its 2023 lawsuit against Coinbase. Source: Paul GrewalThe Commission’s dropped lawsuit reflects the positive regulatory shift toward cryptocurrencies in the United States as reform at the federal level matriculates into state-level regulatory policy.Related: Oregon targets Coinbase after SEC drops its federal lawsuitUS states drop Coinbase lawsuit but half still holding outFive of the 10 states that filed the litigation against Coinbase for its staking services have dropped their lawsuits.On March 13, Vermont’s Department of Financial Regulation became the first of the 10 state regulators to drop the staking lawsuit against Coinbase.South Carolina’s securities watchdog was the next to drop the 2023 litigation against Coinbase, dismissing the lawsuit on March 28.Grewal announced that Kentucky’s Department of Financial Institutions followed Vermont and South Carolina’s lead on April 1 by also dismissing its Coinbase lawsuit.Despite the domino effect of states rescinding litigation against the crypto exchange, the Coinbase chief legal officer said that more work needs to be done.”Five holdouts are still electing to waste taxpayer resources on lawsuits, and four of those have banned staking with Coinbase, depriving consumers of the right to earn on their platform of choice,” Grewal wrote in an April 23 X post.Magazine: SEC’s U-turn on crypto leaves key questions unanswered