Evening News | AEX Exchange experiences withdrawal delays due to liquidity shortages; at least 10 browser extension wallets, including MetaMask, may have security vulnerabilities

Organizer: Nianqing, Chain Catcher

"What important events have occurred in the past 24 hours"

1. 8 Blocks Capital Trading Director: Three Arrows Capital misappropriated about $1 million from the institution for margin calls

8 Blocks Capital Trading Director Danny tweeted that since signing an agreement with Three Arrows Capital in November 2020, they have paid fees to use their trading account to reduce trading rates, with the understanding that they could exit the account at any time, and that Three Arrows Capital would never transfer funds without permission.

On June 13, 8 Blocks Capital requested a large withdrawal from Three Arrows Capital due to market conditions. The other party did not respond, and subsequently, the institution discovered that $1 million was missing from the trading account. After attempting to contact Three Arrows Capital, there was no response. Danny stated that Three Arrows Capital used these funds for margin calls.

"Losing a bet is one thing, but at least do it with dignity, and don’t drag others who are not involved in your bet into it. Don’t be sneaky with everyone, as they might help you," Danny said. (Source link)

2. At least 10 browser extension wallets, including MetaMask, have security vulnerabilities, some wallets have patched the vulnerabilities

At least 10 browser extension wallets, including MetaMask and Phantom, may have exposed login information due to an issue in the Javascript language. This vulnerability allows mnemonic phrases to be stored in memory for a period, making them exploitable by attackers. Currently, MetaMask and Phantom have patched the vulnerability.

MetaMask stated that the possibility of being hacked only exists if all three conditions are met: the hard drive is unencrypted, the mnemonic phrase is imported to an untrusted device or the computer is hacked, and the "show mnemonic phrase" feature is used during import. Additionally, Halborn received a $50,000 bounty for disclosing the vulnerability and recommended users switch to new wallet addresses. Halborn co-founder Steve Walbroehl stated that the vulnerability has existed for a long time, and it is best to change wallet addresses out of caution. (CoinDesk)

3. AEX exchange experiences withdrawal delays, official statement cites short-term redemption issues with medium to long-term allocated assets

According to an official announcement, the withdrawal delays at cryptocurrency exchange AEX are due to short-term redemption issues with medium to long-term allocated assets. AEX stated that USDT and USDC assets previously mined on Curve were partially consumed due to the collapse of UST, coupled with net value retracement from third-party quantitative institutions and delays in customer repayments for mining machine allocation and staking loan services, resulting in a capital outflow of $450 million since mid-May, leading to a short-term liquidity shortage.

AEX claimed that the total asset amount can still meet all user redemption requests, but some medium to long-term allocated assets are difficult to redeem in the short term. They have begun adjusting their asset allocation structure and will restore normal operations as soon as possible. To prevent a run on the bank, AEX will suspend withdrawals for certain cryptocurrencies, including Bitcoin, Ethereum, USDT, and USDC, for 36 hours and will initiate a new response plan within that timeframe. (Source link)

4. Today's Legal Report: A man in Guangxi was robbed of 3 million yuan in cash during an offline Bitcoin transaction
CCTV's Today's Legal Report covered a virtual currency robbery case that occurred last May. Yang and Wang from Hezhou, Guangxi, arranged to meet a seller with 3 million yuan in cash at a designated hotel to trade Bitcoin. However, the virtual currency transaction was a trap from the start, as the buyers had set up a gang to ambush them on-site. After being lured out of the hotel, a group of masked men suddenly rushed in and stole the 3 million yuan in cash. The Hezhou police captured all suspects within 36 hours of the incident. The investigating officer stated that a similar robbery case involving a virtual currency buyer had previously occurred in Guilin, but the buyer did not dare to report it. (Source link)

5. Zhao Changpeng: Binance's investment in Forbes is "changing," still hopes for Musk's successful acquisition of Twitter

Binance CEO Zhao Changpeng stated in an interview that the agreement for Binance to invest $200 million in Forbes is "changing" after the failure of Forbes' SPAC listing deal. Zhao reiterated that Binance still hopes to proceed with the investment but did not disclose any details regarding changes to the terms. Previously, insiders revealed that the SPAC listing plan for Forbes had been canceled.

Additionally, Binance contributed approximately $500 million to Elon Musk's acquisition of Twitter, but recent views on whether this deal will continue are not optimistic. Zhao stated, "I don’t know what’s happening with the Twitter deal, but we still hope it can go through." When asked if he was disappointed by Musk's apparent lack of interest in completing the acquisition, he replied, "To be honest, yes, we hope to contribute to Twitter in some way." (Bloomberg)

6. DeFi lending protocol Inverse Finance suffers a flash loan attack, losing $1.2 million, and has paused lending

DeFi lending protocol Inverse Finance was attacked via a flash loan, with hackers stealing approximately $1.2 million. According to on-chain data, the hackers utilized a flash loan of 27,000 packaged Bitcoins (worth about $579 million) around 4:47 AM Eastern Time. The exploited funds included 53 BTC and 100,000 USDT.

Inverse Finance officials stated that this morning, DOLA (a decentralized stablecoin pegged to the US dollar) was removed from the Inverse money market Frontier, and lending has been paused while they investigate the matter, assuring that no user funds have been compromised or are in danger. Previously in April, Inverse Finance had also suffered a hack, resulting in a loss of approximately $15 million. (The Block)

"What excellent articles are worth reading in the past 24 hours"

1. "Bankless: 8 Projects to Watch in a Bear Market"

Recently, we have been focused on the declining price trends, but let’s not forget that Web3 is in a building phase.

The bear market allows CEOs to think from a fundamental perspective and spend more time creating meaningful technology. With a large influx of new crypto users, there are many new areas to build. In 2021, the Web3 space grew from 0 to 1. Now, we need clear-headed and well-funded companies to scale up according to the blueprint. Bankless introduces 8 projects at the forefront of the crypto world, including Obol Network.

2. "Understanding Vitalik's Perspective on Non-Financial Blockchain Applications"

Recently, there has been increasing interest in non-financial blockchain applications. Vitalik Buterin believes that while the development prospects of these projects are uncertain, such tools should not be overlooked. He elaborated on areas such as user account key changes and recovery, modification and revocation proofs, negative reputation, commitment to scarcity, consensus knowledge, interoperability with other blockchain applications, open-source metrics, and data storage.

3. "Messari: Overview of the Synthetix Ecosystem"

Liquidity is an important factor in assessing whether a crypto asset is of high quality. If we don’t want to ask on Twitter, "Which cryptocurrency should I buy?", we usually look for answers on exchanges. But what if a crypto asset lacks on-chain liquidity or doesn’t exist on-chain at all? To meet this demand, Synthetix provides on-chain liquidity solutions for almost all crypto assets through the minting and swapping of synthetic assets.