DeFi Market Sinks: DOJ Hunts Exploiters, ETH Unstaking Opens
• The US Justice Department is on the hunt for DeFi hackers and exploiters who have stolen millions of dollars worth of assets.
• Bancor DAO was hit with a class-action lawsuit over its impermanent loss protection promises.
• Coinbase Cloud has tapped into the Chainlink Oracle network to improve its smart contract reliability.
US Justice Department Investigates DeFi Hacks
The United States Department of Justice (DOJ) is cracking down on DeFi hackers and exploiters amid a four-year rise in illicit crypto activity. According to Eun Young Choi, director of the DOJ’s National Cryptocurrency Enforcement Team, the department is focusing on thefts and hacks involving decentralized finance (DeFi), and “particularly chain bridges.” North Korean state-sponsored hackers are seen as key actors in this space, making it a “significant issue” for the DOJ.
Bancor DAO Hit With Class Action Lawsuit
The decentralized autonomous organization Bancor DAO recently faced a class action lawsuit over its impermanent loss protection promises. This lawsuit highlights how investors may be vulnerable when dealing with DeFi protocols, especially those that offer complex features or lack appropriate defense mechanisms against malicious actors.
Coinbase Cloud Taps Into Chainlink Oracle Network
To improve its smart contract reliability, Coinbase Cloud has tapped into the Chainlink Oracle network. Coinbase Cloud will now act as a node operator on Chainlink’s oracle network, providing high-quality data to several blockchain protocols including Ethereum and Bitcoin networks.
DeFi Market Slumps Below $50 Billion
After nearly a month of bullish price action, the total value locked in DeFi protocols fell below $50 billion last week — marking another bearish week for the DeFi market. This could be attributed to traders taking some profits off the table after accumulating substantial gains from previous weeks’ breaking news events such as Uniswap V3 launch or Compound’s COMP token distribution event.
Celsius Moves Massive Stake From Lido As Ether Withdrawals Open
As Ethereum un-staking opened on Beacon Chain this week, bankrupt crypto lender Celsius moved $781 million worth of staked Ether (stETH) from staking service provider Lido — just as Ether (ETH) withdrawals opened up again. This shows that despite facing legal troubles, Celsius still managed to shift an impressive amount of capital away from staking services before others could capitalize on their withdrawal window opportunity.