Crypto trader gets sandwich attacked in stablecoin swap, loses $215K
A crypto trader fell victim to a sandwich attack while making a $220,764 stablecoin transfer on March 12 — losing almost 98% of its value to a Maximum Extractable Value (MEV) bot.$220,764 worth of the USD Coin (USDC) stablecoin was swapped to $5,271 of Tether (USDT) in eight seconds as the MEV bot successfully front-ran the transaction, banking over $215,500.Data from Ethereum block explorer shows the MEV attack occurred on decentralized exchange Uniswap v3’s USDC-USDT liquidity pool, where $19.8 million worth of value is locked.Details of the sandwich attack transaction. Source: EtherscanThe MEV bot front-ran the transaction by swapping all the USDC liquidity out of the Uniswap v3 USDC-USDT pool and then put it back in after the transaction was executed, according to founder of The DeFi Report Michael Nadeau.The attacker tipped Ethereum block builder “bob-the-builder.eth” $200,000 from the $220,764 swap and profited $8,000 themselves, Nadeau said.DeFi researcher “DeFiac” speculates the same trader using different wallets has fallen victim to a total of six sandwich attacks, citing “internal tools.” They pointed out that all funds traveled from borrowing and lending protocol Aave before being deposited on Uniswap.Two of the wallets fell victim to an MEV bot sandwich attack on March 12 at around 9:00 am UTC. Ethereum wallet addresses “0xDDe…42a6D” and “0x999…1D215” were sandwich attacked for $138,838 and $128,003 in transactions that occurred three to four minutes earlier.Both transactors made the same swap in the Uniswap v3 liquidity pool as the trader who made the $220,762 transfer. Others speculate the trades could be attempts at money laundering.“If you have NK illicit funds you could construct a very mev-able tx, then privately send it to a mev bot and have them arb it in a bundle,” said founder of crypto data dashboard DefiLlama, 0xngmi.“That way you wash all the money with close to 0 losses.” Related: THORChain at crossroads: Decentralization clashes with illicit activityWhile initially criticizing Uniswap, Nadeau later acknowledged that the transactions didn’t come from Uniswap’s front end, which has MEV protection and default slippage settings.Nadeau backtracked on those criticisms after Uniswap CEO Hayden Adams and others clarified the protections Uniswap has in place to fight against sandwich attacks.Source: Hayden AdamsMagazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
US CPI comes in lower than expected — Are rate cuts coming?
The latest US core Consumer Price Index (CPI) print, a measure of inflation, came in lower than expected at 3.1%, beating expectations of 3.2%, with a corresponding 0.1% drop in headline inflation figures.According to Matt Mena, crypto research strategist at 21Shares, the cooling inflation data adds to the likelihood that the Federal Reserve will cut interest rates this year, injecting much-needed liquidity into the markets and sending risk-on asset prices higher. Mena added:“Rate cut expectations have surged in response — markets now price a 31.4% chance of a cut in May, up over 3x from last month, while expectations for three cuts by year-end have jumped over 5x to 32.5%, and four cuts have skyrocketed from just 1% to 21%.”Despite the better-than-expected inflation numbers, the price of Bitcoin (BTC) declined from over $84,000 at the daily open to now sit around $83,000 as traders grapple with US President Donald Trump’s trade war and macroeconomic uncertainty.A majority of market participants believe the Federal Reserve will cut interest rates by June 2025. Source: CME GroupRelated: Bitcoin’s ‘Trump trade’ is over — Traders shift hope to Fed rate cuts, expanding global liquidityIs President Trump crashing markets to force rate cuts?Federal Reserve Chairman Jerome Powell said on several occasions that the central bank is not rushing to cut interest rates — a view echoed by Federal Reserve Governor Christopher Waller.During a Feb. 17 speech at the University of New South Wales in Syndey, Australia, Waller said the bank should pause interest rate cuts until inflation comes down.These comments were met with concern from market analysts, who say that a lack of rate cuts might trigger a bear market and send asset prices plummeting.On March 10, market analyst and investor Anthony Pompliano speculated that President Trump was intentionally crashing financial markets to force the Federal Reserve to lower interest rates.The US government has approximately $9.2 trillion in debt that will mature in 2025 unless refinanced. Source: The Kobeissi LetterAccording to The Kobeissi Letter, the US government needs to refinance roughly $9.2 trillion in debt before it reaches maturity in 2025.Failure to refinance this debt at lower interest rates will drive up the national debt, which is currently over $36 trillion, and cause the interest payments on the debt to balloon.Due to these reasons, President Trump has made interest rate cuts a top priority for his administration — even at the short-term expense of asset markets and business.Magazine Elon Musk’s plan to run government on blockchain faces uphill battle
Crypto exchange OKX secures MiFID II license in Europe
Cryptocurrency exchange OKX has acquired a key European Union license that will enable the company to offer derivatives products throughout the region, potentially opening the door to a more advanced segment of the trading community. In a March 12 announcement, OKX’s Europe CEO, Erald Ghoos, confirmed that the exchange acquired a Markets in Financial Instruments Directive (MiFID II) license. The license will allow OKX to launch derivatives trading products for institutional investors across the EU.Source: OKXThe announcement came less than two months after OKX secured a preauthorization under the Markets in Crypto-Assets (MiCA) framework, which allows the exchange to offer localized services across 28 markets within the European Economic Area.Although the MiFID II and MiCA licensing regimes are seen as complementary, they serve different purposes. MiFID II applies to all types of financial instruments and requires crypto derivatives platforms to register. On the other hand, MiCA applies to crypto-asset service providers dealing with cryptocurrencies that are not considered financial instruments. Headquartered in Seychelles, OKX is one of the world’s largest cryptocurrency exchanges based on daily volume. According to CoinMarketCap, the exchange processed nearly $3.7 billion worth of spot trades on March 12. Related: Kraken secures MiFID license to offer derivatives in EuropeGrowing demand for derivativesDemand for cryptocurrency derivatives has been on the rise as more institutional investors enter the digital asset space. A November report by CCData placed the centralized crypto derivatives market at nearly $7 trillion, having climbed 89.4% and surpassing the previous peak in March of last year. Crypto derivatives volumes reached all-time highs in the fourth quarter of 2024. Source: CCDataA February 2024 report by EY predicted that the evolution of decentralized finance (DeFi) would continue to catalyze crypto derivatives markets. The report said:“Despite the high-profile crypto firm bankruptcies in the 2022 crypto recession, which have led to increased calls for greater regulation of the crypto asset industry, including the derivatives-trading sector, it is expected that the crypto derivatives market will continue to grow and evolve with the launch of new products that address market participants’ investment and hedging needs.”When Kraken secured its MiFID license last month, it cited Europe as “one of the most active regions for crypto derivatives trading.”Although not referencing solely derivatives trading, CME Group called Europe the world’s second-largest cryptocurrency economy, accounting for nearly 18% of global transaction volumes. Magazine: Block by block: Blockchain technology is transforming the real estate market
Banks acting as validators risks centralization — Everstake exec
New US regulatory guidance allowing banks to become validators for blockchain networks is a major step for institutional adoption but worsens centralization risks, Bohdan Opryshko, chief operating officer of staking service provider Everstake, told Cointelegraph. On March 7, the US Office of the Comptroller of the Currency (OCC) eased its stance on how banks can engage with crypto, including permitting banks to participate “in independent node verification networks,” the regulator said. Opryshko said US banks’ increased involvement in proof-of-stake (PoS) networks, such as Ethereum and Solana, could be a “double-edged sword.” “If banks become dominant validators, power could become concentrated, reducing the decentralized nature of PoS networks,” Opryshko told Cointelegraph on March 12.The additional financial inflows into PoS networks could also suppress staking yields, potentially undermining smaller validators, he added.“If major institutional players, such as banks, enter the staking market and suddenly stake large amounts, […] it could cause a sharp reduction in staking rewards for all other participants,” Opryshko said. Staking yields as of March 12. Source: Staking RewardsRelated: OCC lays out crypto banking after Trump vows to end Operation Chokepoint 2.0As of March 12, Ether stakers earn approximately 5.5% APR, and Solana stakers earn close to 8%, according to data from Staking Rewards. Staking involves securing blockchains by posting crypto as collateral with validators in exchange for rewards. Debanking debacleThe OCC’s announcement came after US President Donald Trump vowed to end a prolonged regulatory crackdown that restricted crypto firms’ access to banking services.Crypto industry outrage over so-called “debanking” reached a crescendo when a June 2024 lawsuit spearheaded by Coinbase resulted in the release of letters showing US banking regulators asked certain financial institutions to “pause” crypto banking activities.In a Jan. 23 executive order, Trump — who has vowed to make America the “world’s crypto capital” — told agencies to prioritize “fair and open access to banking services” for digital asset firms.As of March 12, Anchorage Digital is the only federally chartered US bank to offer cryptocurrency staking. Magazine: SEC’s U-turn on crypto leaves key questions unanswered
Rumble embraces Trump-era crypto strategy with $17M BTC purchase
Video-sharing platform Rumble says it had purchased more than $17 million worth of Bitcoin as part of a previously announced investment strategy.In a March 12 notice, Rumble said it had added 188 Bitcoin (BTC) to its treasury for roughly $17.1 million. The investment, suggested by CEO Chris Pavlovski in November following Donald Trump winning the US presidential election, was touted as a hedge against inflation and part of a broader move to deepen ties to the crypto industry.The platform hinted it could make additional Bitcoin purchases depending on market factors. Though Rumble did not specifically mention Trump or his attempts to establish a strategic Bitcoin reserve and crypto stockpile at the federal level, Pavlovski’s social media posts suggested strong support for the US president’s policies. Rumble’s cloud currently hosts Trump’s social media platform, Truth Social — the president’s primary method for public communications — and entered into an agreement with El Salvador’s government in January to provide services. Cointelegraph reached out to Rumble for comment but did not receive a response at the time of publication.Related: Tether pours $775M into video-sharing platform RumbleWith Bitcoin on its balance sheet, Rumble joins a list of companies that have invested in crypto following the November election, including AI firm Genius Group and software company Semler Scientific. The share price of Rumble stock has fallen roughly 34% since Jan. 1. US government could soon hodl BitcoinSince Jan. 20, the Trump administration has deepened ties between the US government and the crypto industry through executive action and policies. The US Securities and Exchange Commission, one of the biggest financial regulators in the country, announced it would be dropping investigations and enforcement actions against many crypto firms over allegations of unregistered securities offerings. Trump also hosted many crypto executives and CEOs at the White House on March 7 as part of a summit to discuss a proposed national Bitcoin reserve and crypto stockpile.Trump’s proposed Bitcoin reserve — which could be codified into law if Congress moves forward with legislation — could see all BTC seized by US authorities HODLed rather than sold at auction. It’s unclear how this action may affect the price of the cryptocurrency.Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8
Sui Foundation onboards Blockaid to enhance ecosystem security
Blockaid, a leading security provider in the Web3 space, has recently announced a partnership with the Sui Foundation to enhance the security of the Sui ecosystem. This collaboration aims to protect Sui wallets and respond to potential threats such as smart contract exploits, offchain attacks, and operational faults.
The Sui Foundation is dedicated to supporting the growth of Sui, a layer-1 blockchain that was launched in May 2023. The main goal of Sui is to create a decentralized network that can handle a high volume of transactions with minimal delay. According to a recent blog post, the total number of accounts on the Sui blockchain has reached 67.3 million in 2024, and the total value locked on the network is currently at $1.1 billion.
As a trusted security partner in the Web3 space, Blockaid has been providing security tools to top clients such as Stellar, Avalanche, and Coinbase. In November 2024, Blockaid partnered with Backpack to prevent potential losses of $26.6 million from decentralized finance attacks on Solana.
The Sui network has recently been targeted by malicious actors, resulting in a $29 million loss for a user. This incident highlights the importance of having strong security measures in place. In response, Sui has issued a $500,000 bounty to blockchain security firm CertiK for discovering potential threats to the network.
While the Sui programming language, Move, is designed to prevent common smart contract vulnerabilities, there is still a need for coding audits to ensure the security of the network. According to blockchain security firm SlowMist, developers must pay attention to business logic security to avoid potential asset loss due to coding errors or improper design.
In conclusion, the partnership between Blockaid and the Sui Foundation is a significant step towards enhancing the security of the Sui ecosystem. With the increasing number of threats in the Web3 space, it is crucial for blockchain projects to prioritize security measures to protect their users and assets.
Bitcoin dominance hits new highs, alts fade: Research
Bitcoin’s dominance in the cryptocurrency market has reached new heights, leaving altcoins in the dust. According to data from Matrixport, a cryptocurrency financial services platform, Bitcoin’s dominance currently stands at 61.2%, up from a low of 54% in December. This rise in dominance is a clear indication that the recent altcoin rally was short-lived.
The altcoin rally, which lasted barely a month from November to December, was fueled by the US presidential election and a stronger-than-expected US jobs report. However, the market focus shifted towards a more hawkish Federal Reserve, causing altcoins to fade and Bitcoin to regain its dominance.
This trend is not uncommon, as Bitcoin’s dominance typically wanes towards the end of market cycles as capital rotates into altcoins. However, this time, the rise in Bitcoin’s dominance is also due to its resilience in the face of macroeconomic volatility. The US Federal Reserve’s decision to hold interest rates steady in January dealt a blow to both stocks and cryptocurrencies. Bitcoin’s spot price has dropped approximately 20% since the central bank’s announcement, but it has still outperformed the broader crypto market.
Altcoins, on the other hand, are more sensitive to macroeconomic volatility and have seen a significant decline in value. This has led savvy traders to rotate out of altcoins and into Bitcoin, which has proven to be a more stable investment.
The next leg of Bitcoin’s rally will depend largely on the Fed’s decision to hike interest rates to combat inflation. The recent Consumer Price Index, which measures US inflation, came in lower than expected, indicating a cooling down of inflation. This has led to expectations that the Fed will hold rates steady at its next meeting in March.
In the meantime, the cryptocurrency market continues to be dominated by Bitcoin, with altcoins struggling to keep up. As the market awaits the Fed’s decision, all eyes are on Bitcoin and its potential for further growth. Will it continue to dominate the market, or will altcoins make a comeback? Only time will tell.
SEC postpones ruling on Fidelity Ether ETF options
The US Securities and Exchange Commission has postponed ruling on whether or not to permit Cboe BZX Exchange to list options tied to asset manager Fidelity’s Ether (ETH) exchange-traded fund (ETFs). The agency has given itself until May 14 to approve or disapprove of Cboe BZX’s request to list options tied to Fidelity Ethereum Fund (FETH), according to a March 12 SEC filing. Cboe BZX initially requested to list options on Fidelity’s Ether ETFs in January, the filing said. Listing options on Ether funds is an important step in attracting institutional capital to the cryptocurrency. Ether ETFs by net assets. Source: VettaFiRelated: SEC acknowledges slew of crypto ETF filings as reviews, approvals accelerateFlurry of filingsIn February, the SEC acknowledged more than a dozen exchange filings related to cryptocurrency ETFs, according to records.The SEC’s acknowledgments highlight how the agency has softened its stance on crypto since US President Donald Trump started his second term on Jan. 20.On March 11, Cboe BZX asked regulators for permission to incorporate staking into Fidelity’s Ether ETF. Staking is not yet permitted by any publicly traded US Ether fund. Staking Ether enhances returns and involves posting ETH as collateral with a validator in exchange for rewards.Fidelity’s FETH is among the more popular Ether ETFs, with around $780 million in net assets as of March 12, according to data from VettaFi. In February, the SEC delayed deciding on similar rule changes proposed by Nasdaq ISE and Cboe’s affiliate, Cboe Exchange — both US-based securities exchanges. The agency intends to decide by April if Nasdaq can list options tied to BlackRock’s iShares Ethereum Trust (ETHA). BlackRock’s fund is the largest ETH ETF, with more than $3.7 billion in net assets, VettaFi’s data shows.It will rule on Cboe Exchange’s bid to list options on Fidelity’s Ether fund in May. Spot Ether ETFs were listed in July 2024 and have proceeded to attract nearly $7 billion in net assets, according to VettaFi’s data. Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price.Magazine: MegaETH launch could save Ethereum… but at what cost?