Evening News | Multiple crypto companies disclose their risk exposure to crypto banks; U.S. prosecutors are investigating the reasons behind the failure of TerraUSD
Sei Network is about to launch the final version of the testnet Atlantic-2; Iron Fish mainnet launch has been postponed to April 20.整理：饼干，ChainCatcher
"What Important Events Happened in the Last 24 Hours"
1. Multiple Crypto Companies Disclose Risk Exposure to Signature, Silvergate, and Silicon Valley Bank
Bitcoin mining company Argo Blockchain stated that one of its subsidiaries holds cash deposits at Signature Bank, but these deposits are safe and accessible. Additionally, Argo and its subsidiaries have no exposure to Silicon Valley Bank or Silvergate.
Cryptocurrency market maker GSR indicated that due to proactive risk management, GSR has minimal residual risk exposure to Signature and no direct risk exposure to Silicon Valley Bank and Silvergate.
Animoca Brands released a shareholder information announcement clarifying that the company has no banking relationship with Silvergate Bank or Silicon Valley Bank.
Huobi has withdrawn all funds from Signature Bank and Silvergate Capital, and the funds of the exchange's customers are unaffected.
The Fantom Foundation's reserve treasury has no direct contact with any U.S. institutions and does not manage or handle any third-party funds.
2. Insider: Silicon Valley Bank's First Auction Failed Yesterday, FDIC Plans to Try Auctioning Again
According to insiders, Silicon Valley Bank (SVB) was auctioned for the first time on Sunday afternoon but ultimately failed, and the Federal Deposit Insurance Corporation (FDIC) is planning to try auctioning again. The Wall Street Journal reported that regulators have designated SVB's collapse as a potential threat to the financial system, providing the FDIC with more options for selling the company, such as offering insurance to depositors above the $250,000 insurance limit and providing better terms.
Previous report indicated that the FDIC took over SVB last Friday and initiated the auction process, with final bids ending on Sunday afternoon local time. (CoinDesk)
3. DCG: Santander, HSBC, Deutsche Bank, and Others Still Willing to Serve Crypto Companies
According to CoinDesk, following the collapses of Silicon Valley Bank, Signature Bank, and Silvergate, Digital Currency Group (DCG) is trying to find new banking partners for its portfolio companies. DCG stated that Santander (SAN), HSBC (HSBA), Deutsche Bank (DB), BankProv, Bridge Bank, Mercury, Multis, and Series Financial are still willing to connect with crypto companies.
It is reported that these banks may limit certain services for cryptocurrency companies, such as brokerage and money market services, as well as the ability to remit to third parties. Traditional banks may be willing to set up bank accounts for cryptocurrency companies but will impose restrictions based on the level of exposure to cryptocurrencies. (Source link)
4. Bloomberg: U.S. Prosecutors Investigating Jump, Jane Street, and Alameda's Chats Regarding TerraUSD
According to insiders, U.S. federal prosecutors in Manhattan are investigating chats from employees of Jump, Jane Street, and Alameda Research on Telegram last May regarding a potential bailout for the TerraUSD (UST) stablecoin project and whether there was possible market manipulation involved. As part of the chat review, no one has been accused of wrongdoing, and the investigation does not necessarily imply that charges will be filed.
Previous report cited by The Wall Street Journal indicated that the U.S. Department of Justice is investigating the reasons behind the collapse of the TerraUSD stablecoin last year. (Bloomberg)
5. Coinbase: Listed Digital Assets Are Not Securities, Willing to List Securities if SEC Sets Rules
According to CoinDesk, Coinbase denied in a non-party brief submitted to the court that any tokens involved in insider trading by former Coinbase manager Ishan Wahi are securities, stating that the digital assets listed by Coinbase are not securities. However, Coinbase is willing to list securities if the U.S. Securities and Exchange Commission (SEC) provides appropriate guidance and regulations.
It is reported that Wahi pleaded guilty in the insider trading case and was sentenced to 10 months in prison, with a return to court scheduled for March 22. Insiders indicated that Coinbase's statement should not be interpreted as a signal of support for Wahi but rather an attempt to compel the SEC to clarify actions that should be criminal cases. (Source link)
6. Sei Network to Launch Final Version of Testnet Atlantic-2
Layer 1 public chain Sei Network announced the upcoming launch of the final version of its testnet, Atlantic-2. Sei Network views this version as the last milestone before the mainnet launch. Atlantic-2 will adopt Sei's Twin Turbo consensus, DeliverTx, and Enblock parallelization, as well as permissionless deployment.
It is reported that Twin Turbo consensus features Intelligent Block Propagation and Optimistic Block Processing, allowing Sei to broadcast and process blocks faster than regular Tendermint; in terms of parallelization, Sei utilizes two different types of parallelization to further improve network throughput and latency, where DeliverTx parallelization allows for the parallelization of all types of transactions, while Endblock parallelization is limited to order transactions. (Source link)
7. Iron Fish Mainnet Launch Delayed to April 20, Airdrop Delayed to April 21
Web3 privacy platform Iron Fish, originally scheduled to launch its mainnet on March 14, has announced a delay to April 20 due to the discovery of a bug that needs fixing, giving users more time to complete KYC. Starting today, the redemption portal is open to all participants, with a new KYC deadline of April 14, and all eligible testnet users will receive an airdrop on April 21. (Source link)
8. Insider: DeFiance Capital Completes $100 Million Liquidity Token Fund Close and Will Begin Investing This Month
According to The Block, citing two insiders, crypto investment fund DeFiance Capital has completed fundraising for its "eight-figure" fund and will begin investing this month.
One insider revealed that DeFiance Capital's LP includes crypto funds of funds, family offices, and existing DeFiance investors. Previously, ChainCatcher reported in October last year that DeFiance Capital founder Arthur Cheong was planning to raise $100 million for a new fund.
Additionally, crypto data platform RootData shows that DeFiance Capital has investment cases including projects like dYdX, Lido, ConsenSys, and Secret Network. (Source link)
9. Former PayPal Financial Founder Flex Yang Launches Distributed Stablecoin HOPE
Former PayPal Financial founder Flex Yang has launched a distributed stablecoin called HOPE, with initial reserve assets including Bitcoin and Ethereum. The HOPE ecosystem includes four protocols: HopeSwap, HopeLend, HopeConnect, and HopeEcho, providing trading, lending, derivatives, and synthetic asset functionalities.
Additionally, the project will introduce an incentive and governance token LT (Light Token) to encourage user participation in ecosystem applications and governance. (Source link)
10. Halborn: Over 280 Blockchain Networks, Including Dogecoin and Litecoin, Have 0-Day Vulnerabilities, Putting Over $25 Billion in Digital Assets at Risk
Blockchain security company Halborn stated that in March 2022, it was hired to assess whether there were any vulnerabilities in the Dogecoin open-source codebase that could affect blockchain security. During this assessment, Halborn discovered several serious and exploitable vulnerabilities, which have since been fixed by the Dogecoin team. However, after a broader review, Halborn determined that the same vulnerabilities affected over 280 other networks, including Litecoin and Zcash, putting over $25 billion in digital assets at risk. Halborn has codenamed this vulnerability "Rab13s."
Halborn stated that it has developed an exploit toolkit for Rab13s, which includes proof-of-concept with configurable parameters to demonstrate attacks on different networks. Due to the severity of the issue, Halborn will not release further technical or exploit details at this time. (Source link)
"What Interesting Articles Are Worth Reading in the Last 24 Hours"
1. "An Analysis of the Current Status and Trends of MEV"
After the Ethereum merge, the roles in the MEV supply chain have changed due to the alteration of the mining mechanism. Before Danksharding is implemented, Flashbots proposed MEV-Boost as an off-protocol practice for PBS. The implementation of the PBS mechanism has altered the interests in the blockchain block production industry, promoting the specialization and commercialization of related institutions in the industry chain and forming a new pattern in the MEV supply chain.
2. "Revisiting Web3 Aggregation Theory: How Startups Build Market Moats?"
In Web3, aggregators mainly rely on the fact that verification and trust costs collapse. At that time, my hypothesis was that monopolies would be established by companies expanding fast enough in the form of aggregator interfaces, specifically citing Nansen, Gem, and Zerion as examples. Ironically, in hindsight, my hypothesis was incorrect, which is what I want to write about today.
One consensus this year is that the core narrative of the crypto market is LSD. Thus, we can see that many protocol products are starting to align with LSD, such as Frax Finance launching frxETH, MakerDAO about to launch ETHD, Yearn set to launch yETH, and so on. The established staking protocol Stader Labs is also following the trend by launching Ethereum LSD-related products.
For a long time, Cosmos has been too decentralized in its governance mechanism, leading to the ecosystem's prosperity having no direct relationship with ATOM. The Cosmos community has been promoting the idea of having Cosmos Hub undertake the verification tasks of blockchains in the ecosystem since last year to capture value within the ecosystem. The core of this upgrade is "Replicated Security (RS)," which is the original Interchain Security, allowing blockchains in the Cosmos ecosystem to share verification resources to enhance security, with Cosmos Hub acting as the security provider.
