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BTC $78,566.80 -0.20%
ETH $2,487.21 +0.28%
BNB $747.97 +1.34%
XRP $1.41 +1.37%
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TRX $0.3389 +1.24%
DOGE $0.0893 -0.46%
ADA $0.2163 -0.82%
BCH $257.02 +0.11%
LINK $12.39 -1.70%
HYPE $85.21 +1.34%
AAVE $128.01 -2.36%
SUI $0.8068 -2.19%
XLM $0.1867 -1.16%
ZEC $1,177.88 +4.40%

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Gemini receives arbitration support: no liability for the collapse of the Earn lending program

According to CNBC, Gemini Space Station won a legal victory in August, with arbitrators ruling that the cryptocurrency exchange platform did not mislead users and is not responsible for the collapse of its Earn lending program. The claim was made by a user of the digital asset company's lending program Earn at the end of 2024. According to the ruling, there was insufficient evidence to prove that Gemini lied to customers or was negligent in its due diligence with its main lending partner, Genesis Global Capital.The Earn program was launched in 2021, allowing users to earn up to 7.4% annualized returns by lending cryptocurrency. Under this program, Gemini lent assets to institutional borrowers, with Genesis acting as an intermediary. However, in November 2022, Gemini suspended withdrawals from the Earn program, angering some of its more than 300,000 users. This move came shortly after Genesis suspended new loan issuance and redemptions due to a liquidity crisis caused by the downturn in the cryptocurrency market that year. After the freeze on Earn withdrawals, several customers filed legal complaints against Gemini. The New York Attorney General also sued Gemini over the Earn program and reached a $50 million settlement with the company in 2024.In February 2024, Gemini announced that the company had reached a "principled settlement" with Genesis and other creditors regarding the Genesis bankruptcy case. Three months later, Earn users received $2.18 billion in digital assets in physical form, equivalent to 97% of the digital assets owed to Earn users, which is $1 billion more than when Genesis suspended withdrawals in 2022.

The Sandbox: Compensation will be carried out based on the on-chain snapshot before the attack, and the compensation application process is expected to open within two weeks

The Sandbox released an update on the security vulnerability attack incident involving the SAND cross-chain bridge, stating that the attacker modified the verification mechanism to forge cross-chain deposit messages and mint unbacked SAND. This incident resulted in approximately 14.7423 million SAND being withdrawn, valued at about $697,000. Additionally, some uncollateralized SAND was profited through market trading, leading to an overall economic impact of approximately $1.497 million, of which the attacker actually obtained about $987,000.The Sandbox stated that the attack did not affect the supply of SAND on Ethereum and Polygon, with the total amount of SAND on Ethereum remaining unchanged at 3 billion. There were also no super administrator privileges stolen, and the attack stemmed from a vulnerability caused by the combination of the general call function in the token contract and the design of bridge permissions. Currently, the related addresses have been marked, and collaboration has begun with exchanges, security agencies, and the LayerZero team.For affected users, The Sandbox promises to compensate wallets holding legitimate bridged SAND with a 1:1 ratio of SAND on the Ethereum chain based on an on-chain snapshot taken before the attack. The compensation application process is expected to open within two weeks and will last for two weeks.

Bubblemaps: Attackers stole 50 million USD in NES, but actually only profited 60,000 USD

Bubblemaps posted on platform X that attackers exploited a vulnerability in the Cosmos EVM shared module to steal $50 million worth of NES tokens, but ultimately only profited about $60,000. Previously, Cosmos Labs reported security vulnerabilities in its shared Cosmos EVM software, affecting multiple chains built on this module, including Nesa.According to disclosures, the main attacker with an address starting with 0x9AE7 previously spent $250,000 to purchase NES and cross-chain to Nesa Chain, then exploited the vulnerability to inflate the account balance by 200 times and transferred $50 million NES back to Ethereum, with the initial funds coming from Monero. The attacker then dispersed the tokens to multiple wallet addresses, exchanged NES for ETH on a DEX, and deposited the profits into a centralized exchange.Due to the rapid withdrawal of funds from the liquidity pool, most of the attacker’s exchange transactions encountered severe slippage, resulting in an actual expenditure of $255,000 to initiate the attack, cashing out only $315,000, with a net profit of about $60,000.Bubblemaps stated that although another Cosmos EVM chain had also suffered a similar attack of $1.4 million the day before, the differences in funding sources and operational methods suggest that the two incidents may have originated from different attackers. The report also mentioned that the price of NES tokens once plummeted by 90%, but has since significantly rebounded, with the team believing that the rebound is mainly due to arbitrage activities caused by price mismatches between DEX and CEX after the attack.

Behind the collapse of the "AI Stock God" Leopold Fund: abandoning the sale of Anthropic equity and turning to discounted sales of public stocks

According to Wall St Engine, "AI stock god" Leopold Aschenbrenner's Situational Awareness fund faced liquidity pressure during the market crash in July, with behind-the-scenes details revealed.The report states that after the market rapidly cooled in mid-July, the decline in stocks held by Situational Awareness triggered margin monitoring by banks such as Goldman Sachs and Morgan Stanley, leading to margin calls.Insiders said that other hedge funds began shorting related stocks after learning about its positions, creating a cycle of "price drop → margin call → forced selling → further price decline."In late July, while Leopold was hosting a wedding in Carmel, he continued negotiations with his team to maintain fund operations. On the evening of July 29, he reached a preliminary agreement with a consortium led by Greenoaks and Sequoia Capital to sell approximately $3.5 billion in Anthropic equity.However, in the early hours of July 30, before the U.S. stock market opened, Leopold changed his decision, opting to retain the private equity portfolio and instead sell publicly traded stocks. Subsequently, Citadel and Millennium entered negotiations with the fund team, and Citadel ultimately acquired most of the fund's public stock investment portfolio at a discount of more than 10% below market value before Thursday's opening.This transaction helped Situational Awareness meet margin requirements and avoid formal default. After the deal was completed, related AI and semiconductor stocks rebounded on Thursday, benefiting Citadel.As of around July 31, Situational Awareness disclosed to investors that the fund had a net loss of about 67% in July, but was still up about 80% for the year. Leopold stated that he "takes full responsibility" for the incident, and the fund has removed bank leverage, planning to continue operations and invest in the public market while adjusting its portfolio management and risk control systems.
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