In the latest update from the cryptocurrency sector, several significant developments have emerged, highlighting both security challenges and advancements in the market.
SwissBorg, a prominent crypto exchange, reported that its SOL Earn Wallet was exploited, resulting in the theft of approximately 192,600 SOL tokens, valued at around $41.5 million. The breach occurred due to a compromised API linked to a partner, which the firm clarified did not implicate the SwissBorg platform itself. The incident affected less than 1% of its user base and constituted about 2% of the exchange’s total assets. SwissBorg assured users that their remaining funds and strategies remained secure, and it paused SOL Earn redemptions while working with ethical hackers and law enforcement to recover the lost assets. The company plans to cover any losses users may incur.
In a separate incident, Ledger’s chief technology officer, Charles Guillemet, issued a warning regarding a significant supply chain attack on the Node Package Manager (NPM). The attack involved malicious code surreptitiously integrated into packages that have been downloaded over 1 billion times. This code was designed to stealthily swap users’ crypto wallet addresses during transactions, potentially redirecting funds to attackers. However, Guillemet noted that the overall impact on crypto users appeared to be minimal. He emphasized the interconnected nature of open-source software and the urgency of addressing security vulnerabilities that could ripple through the crypto economy.
Meanwhile, Backpack Exchange announced the launch of Backpack EU, following its acquisition of FTX EU earlier this year. Operating out of Cyprus, Backpack EU aims to be among the first fully regulated exchanges in Europe to offer crypto derivatives, specifically perpetual futures. The platform’s CEO stated that only another exchange, Kraken, currently offers similar products in Europe. This launch signifies Backpack’s commitment to rebuilding trust in digital assets amid the fallout from recent exchange failures.
Polygon’s proof-of-stake chain experienced transaction delays, with finality lagging by 10-15 minutes. Polygon confirmed that it identified the issue, tied to certain nodes and RPC providers, and is actively rolling out a fix. This delay follows Polygon’s recent Heimdall v2 upgrade, which had promised a significant enhancement in transaction speeds.
In other notable developments, World Liberty Financial (WLFI) took action to blacklist Tron founder Justin Sun’s blockchain address, preventing the transfer of WLFI tokens worth approximately $107 million. This decision came after a series of transactions by the Sun-linked address, which the company claimed could impact the market. Sun stated that the address was only involved in harmless deposit tests and urged WLFI to unblock his tokens.
Additionally, decentralized finance protocol Ethena has proposed to issue a forthcoming stablecoin, joining a competition with notable firms like Paxos and Sky. The stablecoin would be backed by Ethena’s USDtb and is positioned as a way to ease the transition for users migrating their trading pairs on Hyperliquid.
In regulatory news, Nasdaq has approached the U.S. Securities and Exchange Commission with a proposal to tokenize equity trading, allowing customers the choice between traditional and blockchain-based trading options. This initiative is part of a broader trend of integrating traditional financial assets with blockchain technology.
The crypto sector also sees changes in leadership, with Patrick Witt stepping up as the White House’s new point of contact for crypto matters, pushing for the completion of sweeping U.S. crypto policies.
As the cryptocurrency landscape continues to evolve, these developments underscore the critical balance between innovation and security in the digital asset space. Events are scheduled in various locations over the coming months, with significant conferences aimed at addressing the industry’s future.
