A recent analysis by a decentralized finance (DeFi) industry expert found that KyberSwap hackers exploited a complex “infinite funds glitch” to siphon $46 million from the protocol. In other news, the 2022 FTX collapse and Binance’s recent $4.3 billion settlement with the U.S. government have strengthened its case against the provisions of the European Union’s Markets for Crypto Assets (MiCA) regulation, a European Commission official said in an interview. It was revealed. Meanwhile, U.S. prosecutors are not happy about former Binance CEO Changpeng “CZ” Zhao leaving the country and have asked a judge to block him.
KyberSwap hackers used the “infinite funds glitch” to steal funds.
DeFi expert comments on the recent $46 million KyberSwap attack.
Doug Colkitt, founder of Ambient Exchange, took to According to Colkitt’s analysis, the attackers exploited an “infinite funds flaw” and leveraged KyberSwap’s unique liquidity implementation. This, he said, allowed them to trick the contracts into believing they were more liquid than they actually were.
1/ I’ve done a preliminary in-depth look into the Kyber exploit and I think I now have a pretty good understanding of what happened.
This is the most complex and carefully designed smart contract attack I have ever seen…
— Doug Colquitt (@0xdoug) November 23, 2023
“This exploit is specific to Kyber’s concentrated liquidity implementation and probably won’t work on other DEXes,” Colkitt explained. According to his analysis, the attacker carried out the attack in several stages, starting with borrowing 10,000 Wrapped Ether (wETH) from Aave.
KyberSwap’s total value locked (TVL) plummeted 68% immediately after the attack, reaching a low of around $27 million. TVL reached $134 million earlier this year.
FTX Collapse, Binance’s US Settlement Provides Strong Basis for MiCA Regulations
A European Commission official said in an interview that the collapse of FTX in 2022 and Binance’s recent $4.3 billion settlement with U.S. authorities provide a strong argument against the provisions of the EU’s MiCA regulation.
Ivan Keller, head of policy at the European Commission, spoke to Cointelegraph at the MoneyLIVE conference in Amsterdam. News of Binance’s high-profile settlement with the U.S. Department of Justice came a day before Keller’s keynote speech and serves as an appropriate point of reflection for the full-scale implementation of MiCA in 2024.
“I think we’ve had a number of unfortunate confirmations that we’ve gone down the path of strong regulation. FTX was definitely one of the biggest ones, and most recently Binance,” Keller explained.
“Our position is that this rulebook mitigates some of the risks and, importantly, provides regulators with clearer tools and authority to oversee these companies, thereby mitigating those risks as well.”
MiCA came into effect in June 2023, but the rules governing “asset-referenced tokens” and “e-currency tokens,” which are mainly stablecoins, are expected to come into effect from June 2024.
The United States wants CZ to stay in the United States.
CZ is a flight risk and should not be allowed to leave the United States for Dubai ahead of his sentencing in February, U.S. prosecutors said.
In papers filed in federal court in Seattle, prosecutors asked a judge to review and overturn the decision to allow Zhao to post $175 million bail and return to the United Arab Emirates on the condition that he return to the United States two weeks before sentencing. I requested it.
If Zhao decides not to return to the United States, the government “will not be able to secure his return” because of his preferred status in the UAE, a country that does not have an extradition treaty with the United States, and his property being withheld. He is vast enough to reside indefinitely outside of U.S. jurisdiction.
“He has three young children and a partner in the UAE. “He went to the UAE once, then returned to the United States and faced with the possibility of up to 18 months in prison, he may instead choose to stay in the UAE with his family.”
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