Despite significant advancements, the crypto industry continues to face cybersecurity threats and vulnerabilities. While the community sees prolonged legal struggles involving such issues, the article highlights the key incidents the industry witnessed over the past week, including the Solana vulnerability, FTX-CFTC settlement, WazirX’s trade reversal, NovaTech lawsuit, and Mango Market exploitation’s new update.
Solana Fixes Critical Security Vulnerability
According to an X post shared by Solana validator Laine, the blockchain ecosystem faced a “critical security vulnerability.” However, the platform fixed the issue before unveiling the matter to the public. The Solana Foundation shared messages to network operators revealing the critical patch’s date and time. The platform intended to fix the vulnerability through a GitHub repository, allowing operators to verify it independently.
FTX-CFTC’s $12B Settlement
In an August 8 court filing, United States District Judge Peter Castel approved a $12.7 billion settlement between the defunct FTX exchange, Alameda Research, and the Commodity Futures Trading Commission (CFTC). As the court ordered FTX and Alameda to pay $12.7 billion to their affected customers, the 20-month-long lawsuit that alleged the platforms defrauded customers found an end.
WazirX’s Trade Reversal Post $230M Hack
The Indian crypto exchange WazirX has announced significant progress in reversing trades executed after the platform suspended withdrawals on June 18, 2024, following the $230 million hack. According to an X post shared by WazirX on August 13, the platform has neared the successful completion of its efforts to restore balances affected by the trades that occurred between July 18 and July 21.
ezBtc’s Smillie Found Guilty of $9.5M in Customer Fund FraudUS SEC Sues NovaTech
The US Securities and Exchange Commission (SEC) has charged the crypto company NovaTech for allegedly accumulating more than $650 million from customer funds. Reportedly, the company co-founders Cynthia and Eddy Petion were involved in a pyramid scheme that raised over $650 million in cryptocurrency, affecting more than 200,000 investors worldwide.
Mango Market’s Legal Update
Avraham Eisenberg, who was previously found guilty of exploitation of the Mango Market, has recently filed a motion to clear his conviction or to receive a new trial. His lawyers argued that the initial trial had fundamental errors. They added that the government failed to prove that the commodities involved in the case fell under the jurisdiction of the Commodities Exchange Act (CEA).
