This week, Bitcoin-HODLing corporations Block Inc. and MicroStrategy both reported significant impairment charges on their holdings. Block is down $36 million, while MicroStrategy is down a staggering $917 million. There also were massive attacks on Solana and the token bridge project Nomad.
Reports of the Nomad exploit first appeared early Tuesday. A researcher at crypto/Web3 investment firm Paradigm called Sam Sun (Twitter handle @samczsun) inspected the situation and tweeted a lengthy play-by-play analysis of the smart contract configuration error that cost users $190 million.
1/ Nomad just got drained for over $150M in one of the most chaotic hacks that Web3 has ever seen. How exactly did this happen, and what was the root cause? Allow me to take you behind the scenes 👇 pic.twitter.com/Y7Q3fZ7ezm
The exploit ostensibly was easy to pull off for anyone with the know-how, resulting in a bit of a free-for-all as attackers piled in to loot the protocol. Nomad promptly offered a reward for anyone who returned the funds, and, as of Friday, had recovered $22 million.
Nomad Bridge Funds Recovery Process
Dear white hat hackers and ethical researcher friends who have been safeguarding ETH/ERC-20 tokens,
Please send the funds to the following wallet address on Ethereum: 0x94A84433101A10aEda762968f6995c574D1bF154 pic.twitter.com/UF623JSZ8u
– attacker is stealing both native tokens (SOL) and SPL tokens (USDC) – affecting wallets that have been inactive for >6 months – both Phantom & Slope wallets reportedly drained pic.twitter.com/AkZXOGLD0Q
Binance CEO Changpeng “CZ” Zhao offered a solution: Send your funds to his company.
There is an active security incident on Solana. Many (7000+ and counting) wallets are drained of SOL & USDC. Don’t know root cause yet. Maybe permissions granted to apps. For remediation, send the funds to a cold wallet or CEX like @Binance. https://t.co/nQrBXAgCbf
The team then posted a partial explanation, alleging that the exploit likely was due to stolen private key information. Solana also said affected users appeared to have been compromised through their Slope wallets.
This exploit was isolated to one wallet on Solana, and hardware wallets used by Slope remain secure.
While the details of exactly how this occurred are still under investigation, but private key information was inadvertently transmitted to an application monitoring service. 2/3
Ava Labs CEO and Founder Emin Gün Sirer shared his thoughts, including some highly technical explanations about how the private keys were accessed.
There’s an ongoing attack targeting the Solana ecosystem right now. 7000+ wallets affected, and rising at 20/min. Because it’s very early and the attack is ongoing, there’s a lot of misinformation and speculation. So here are a few thoughts and clarifications.
On Monday, the U.K. High Court ruled that Dr. Craig Wright, a man who claims to have invented Bitcoin, put forward false evidence as part of his latest defamation court battle against crypto podcaster Peter McCormack, who has repeatedly called Wright a liar. So McCormack was asked to pay him 1 pound ($1.21) in damages. Who says you can’t see a person grinning behind their tweet?
As some of you will now have seen, the judgement in my trial v Dr. Craig Wright has now been handed down.
I want to thank my lawyers for their diligent work on the case.
I also want to thank Mr Justice Chamberlain for this result. We are very pleased with his findings.
Crypto fan Hsaka (@HsakaTrades) on Thursday pointed out how even extremely successful investors like Cathie Wood make mistakes. Pretty big ones, too: Looks like she sold the dip on Coinbase shares. Big time.
And no matter how you feel about crypto, there’s something odd about a Virginia pension fund investing in “yield farming” … now. Is it not a little too soon after Terra and Celsius collapsed? Twitter finance analyst Sean Tuffy smells something fishy.
Arguably the week’s biggest story, MicroStrategy announced that Bitcoin-loving CEO Michael Saylor would be stepping down after 33 years on the job, moving into a new role as executive chairman. Phong Le, the company’s president, is set to fill Saylor’s shoes on Monday. Saylor is set to focus even more on Bitcoin.
A popular blockchain sleuth believes that powerful forces are plotting to FUD Binance.
And finally, entrepreneur Liron Shapira tweeted a fascinating thread accusing blockchain game Axie Infinity of being “a blatant ponzi.”