Weekly News Highlights | Bitkeep suffers asset theft on multiple chains due to APK hijacking; Huobi plans to lay off nearly half of its staff

整理：润升，ChainCatcher

Important News

1. Bitkeep Suffers Asset Theft Across Multiple Chains Due to APK Hijacking

On December 26, it was reported that the multi-chain wallet BitKeep announced in its Telegram group that the cause of the large-scale hacking incident has been identified as a severe collective theft event. Some users downloaded a BitKeep APK package that was hijacked by hackers, and the wallets used by these users were not the official released versions.

As of now, the stolen funds from the BitKeep wallet amount to $8 million, including approximately 4,373 BNB, 5.4 million USDT, 196,000 DAI, and 1,233.21 ETH. (Source Link)

2. Octopus Network: 40% of Core Team Members Resign, Team Token Incentives Suspended Indefinitely

On December 26, it was reported that Louis Liu, the founder of the multi-chain network Octopus Network (章鱼网络) in the Near ecosystem, published a blog post stating that the core team of Octopus Network will initiate a voluntary resignation plan for restructuring, with about 40% of the members (12 out of 30) leaving the core team through this plan. The remaining team members will accept a 20% salary reduction, and team token incentives will be suspended indefinitely.

Louis Liu stated that the plan aims to help Octopus Network survive the crypto winter, and next year the team will focus on Near and IBC as strategic cornerstones for development. If users have any questions regarding Octopus 2.0 and the restructuring of the core team, Louis Liu will explain during the community conference call on January 8.

According to RootData, Octopus Network completed a $3 million seed round of financing in April last year, with investments from NGC Capital, OKX Blockdream Ventures, Spark Digital Capital, and others. Additionally, the project completed a $5 million Series A financing in September last year, with investments from Youbi Capital, DCG, Gate Labs, and others. (Source Link)

3. Defrost Finance Releases Specific Process for Refunding Stolen Funds to Affected Users

On December 27, it was reported that Defrost Finance published details about the refund process on its official blog, stating that all V1 hacked funds have been returned, and the Defrost team will soon begin refunding these assets to their legitimate owners before the attack. The main measures to be taken in the coming days include: 1. All ETH in the addresses will be converted to stablecoins (possibly DAI) at on-chain market prices. 2. All stablecoins will be transferred from Ethereum to Avalanche. 3. The team will begin scanning on-chain data to identify token ownership information before the hack. Detailed information will be announced after the scanning work is completed. 4. A refund smart contract will then be deployed. Legitimate users will be able to request their assets back in the form of stablecoins to the same address. (Source Link)

4. Three Arrows Capital Creditors: Multicoin's Asset Scale Has Dropped by Up to 90% in the Past 11 Months

On December 28, it was reported that Three Arrows Capital creditor Soldman Gachs revealed on Twitter that he received a November investor statement from Multicoin Capital. The statement showed that Multicoin's asset scale has dropped by up to 90% in the past 11 months.

ChainCatcher previously reported that due to the FTX bankruptcy event, Multicoin's asset scale fell by 55% in about two weeks. (Source Link)

5. BitKeep CEO Issues Open Letter: Cause of Incident Identified, Some Stolen Funds Frozen, Urges Users to Transfer Funds Quickly

On December 28, it was reported that the CEO issued an open letter stating that BitKeep was hacked on December 26. The cause of the incident has been identified, and efforts have been made to trace the theft address, with some stolen funds frozen. The team is actively working to recover user losses.

In this malicious attack, hackers exploited and hijacked the BitKeep App 7.2.9 APK on the BitKeep website. By embedding malicious code, the modified APK led to the leakage of user private keys, allowing hackers to transfer funds.

The BitKeep CEO stated that the BitKeep official application installed through various channels has no security issues. However, if the 7.2.9 APK was downloaded from the BitKeep website or if users have updated to this version, they should quickly download the new application, generate a new wallet address, and transfer funds, as private keys may have been leaked. (Source Link)

6. U.S. SEC: If FTX's Investments in Dave and Mysten Labs Came from Customer Funds, They Could Be Recovered as Customer Assets

On December 29, it was reported by CNBC that the U.S. Securities and Exchange Commission (SEC) stated that SBF used customer funds for two $100 million venture investments through FTX subsidiaries, namely in Dave and Mysten Labs. If these two $100 million investments can be clearly linked to customer funds, there may be a possibility of recovery.

"Two $100 million investments made by FTX's affiliated investment tool FTX Ventures were funded by FTX customer funds, which were transferred to Alameda," and if the FTX bankruptcy trustee can determine that customer funds financed SBF's investments, they can recover these funds as part of the recovery of customer assets.

Previously reported, in March this year, the banking transaction app Dave received a $100 million investment from FTX Ventures; in September, the Sui development team Mysten Labs completed a $300 million financing round, led by FTX Ventures. (Source Link)

7. Huobi Plans to Lay Off Nearly Half of Its Employees, All Year-End Bonuses Will Be Canceled

On December 30, it was reported by Wu said that all Huobi employees will have their year-end bonuses canceled. Currently, there are approximately 1,200 employees at Huobi, and the plan is to streamline the team to 600 to 800 people, with high-salary employees renegotiating their salary structures, and reimbursements also indefinitely suspended.

Previously reported in October that Huobi's staff count reached 1,600, and Sun Yuchen was very dissatisfied, planning to conduct large-scale layoffs. (Source Link)

8. FBI Investigating 3Commas Data Breach Incident, Victim Group's Total Loss Exceeds $20 Million

On December 30, it was reported that the FBI is investigating the 3Commas data breach incident. A victim group of about 60 members previously contacted the U.S. Secret Service and other law enforcement agencies, with the group leader stating that their total loss exceeds $20 million.

It is reported that 100,000 Binance and KuCoin API keys associated with 3Commas were leaked, and a 3Commas spokesperson confirmed this news, emphasizing that there is no evidence that 3Commas employees were involved in the attack on the API data during the internal investigation. (Source Link)

9. Sushi Announces New Tokenomics Proposal to Incentivize Liquidity and Promote Decentralization

On December 31, it was reported that SushiSwap's new CEO Jared Grey announced a new tokenomics proposal aimed at increasing liquidity, creating more utility for its native token, and maximizing value for stakeholders. The formal proposal states, "Just like the initially hoped-for xSushi model, the main goal of the new economics is to promote decentralized ownership and reward liquidity growth through an overall and sustainable reward mechanism that scales with quantity and fees. Our goal is to incentivize long-term participation in the Sushi ecosystem while reducing the number of extractive participants."

The proposal outlines four key changes to the protocol's token economics. The most significant change is that staking Sushi (xSushi) will no longer earn rewards from trading fees but will instead receive emission-based rewards paid in Sushi. Liquidity providers in the trading pools generating the most trading volume will receive the majority of Swap fees. Additionally, players can choose a new time-lock mechanism to enhance rewards.

Floating ratio trading fees will also be used to repurchase and burn Sushi from the open market and lock liquidity to provide more price support. The final change will adjust Sushi's emissions to 1-3% APY to reduce inflation and balance overall emissions with repurchases, burns, and locked liquidity, which are used for price support of trading fees. (TheBlock)

10. Pi Network: No Authorization for Any Cryptocurrency Trading Platforms to Launch Pi

On December 31, it was reported that Pi Network officially stated that it has learned of reports that some unauthorized third-party trading platforms and potential unknown third parties are seeking to launch Pi or claim to be Pi's Token without the consent, authorization, or participation of Pi Network.

Pi Network reiterated that Pi is currently in a closed network and that Pi Network has not approved the listing or trading of Pi on any trading platform, nor has it participated in any listing plans or activities. Pi Network advises all pioneers and potential Pi users not to engage with any of these trading platforms or third parties, as their actions are unrelated to Pi Network and may cause significant losses or damages to Pi users. (Source Link)

11. Wall Street Journal: SBF May Plead Not Guilty to Fraud Charges Next Week

On December 31, it was reported that, according to the Wall Street Journal citing informed sources, FTX founder Sam Bankman-Fried (SBF) may plead not guilty to fraud and other charges during next week's hearing.

ChainCatcher previously reported that earlier this month, the U.S. District Court for the Southern District of New York indicted SBF on charges of wire fraud, multiple conspiracy counts, as well as securities fraud and money laundering, in addition to violating campaign finance regulations. SBF is scheduled to appear in court on January 3 regarding the fraud charges against him, which include two counts of wire fraud and six counts of conspiracy. (Source Link)

12. Data: OpenSea's NFT Market Dominance Dropped from 50% to 33% in 2022

On January 1, it was reported that analysis by Cryptoslate showed that OpenSea's NFT market dominance dropped from 50% to 33% in 2022. Additionally, OpenSea's Gas usage on Ethereum also decreased from 20% at the beginning of the year to 9%; the number of NFT transfers dropped from around 80,000 at the beginning of the year to about 60,000, a decline of approximately 25%.

The NFT market dominance metric is based on ERC721 and ERC1155 token contract standards, calculating each NFT market's share of the total trading volume in major NFT markets (OpenSea, LooksRare, Rarible, and SuperRare). (Source Link)

Important Financing/Venture Capital News

1. Casual Chain Game Flappy Moonbird Completes $6 Million Series A Investment

The free-to-earn casual chain game Flappy Moonbird has completed a $6 million Series A investment through tokens, led by LinkVC. This round of financing will be used for the development and production of the Flappy Moonbird series of games and ecosystem construction. The angel round financing came from personal investments from Moonbirds NFT holders.

Flappy Moonbird is produced by the studio Helix Table, which has previously collaborated with casual gaming giant Voodoo, achieving over 10 million downloads and monthly active users. Moving forward, the studio will focus on the Web3 casual chain game sector, delving into vertical fields to introduce more innovative revenue models for healthy game growth. (Source Link)

2. Web3 Twitter Marketing Platform Twity Completes $6.5 Million Financing, with Participation from Wave Capital

On December 29, it was reported that the Web3 Twitter marketing platform Twity has completed $1.5 million in Series A financing and signed a $5 million equity agreement with relevant institutions, totaling $6.5 million in financing, led by Wave Capital. This round of financing will be used for Twity's development of a Web3 traffic aggregation platform and the advancement of its subsequent roadmap.

It is reported that Twity is a Web3.0 advertising marketing service agency aimed at providing simpler and more effective marketing solutions for Web3 brands, creating a traffic aggregation platform in the Web3 space. To address the marketing challenges faced by current Web3 projects, Twity has developed the Promofi system, allowing participating users to share in the advertising revenue generated by marketing efforts, thereby better serving clients.

3. Web3 Online Education Infrastructure DeSchool Completes Seed Round Financing, with Participation from Y2Z Venture

On January 1, it was reported that DeSchool, a Web3 online education infrastructure strategically incubated by SeeDAO, completed its seed round financing at a valuation of $15 million at the end of December 2022. Its investors include Y2Z Venture, former Huobi COO Zhu Jiawei, Plancker founder Hu Donghai, SeeDAO founders Tang Han and Bai Yu, and UniPass founder Zhi Xian.

The DeSchool Pro version was launched in November 2022, allowing instructors to issue SBT educational certificates to students who complete courses. Web3 organizations can also use this tool to simplify community education processes. In the future, DeSchool plans to launch on-chain education resume features and on-chain education certification programs, aiming to become the MOOC + LinkedIn of the Web3 era.

4. Zhang Yimou's Metaverse Company "Dawn of the Red" Completes B++ Round Financing, with Participation from NetEase

On January 1, it was reported that the metaverse company "Dawn of the Red," co-founded and owned by Zhang Yimou, recently completed a B++ round of financing, with the specific amount unknown. NetEase participated in this round of investment through NetEase Media Technology (Beijing) Co., Ltd.

According to the official website, Dawn of the Red aims to create immersive experiences, including technologies such as XR, with the vision of "becoming a great cultural technology company in the metaverse." In October last year, Dawn of the Red announced the completion of several hundred million yuan in Series B financing, led by Xiaomi's strategic investment and Jianyin International, with participation from Yecao Venture Capital and Lenovo Capital; in February this year, Dawn of the Red announced the completion of B+ round financing, with investors including Lakala and the Blueprint Haixing Fund established by BlueFocus as cornerstone investors. (Source Link)