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Maya Protocol Attacked: Six Linked Vulnerabilities Result in Approximately $1.7 Million Stolen, Liquidity Pool Shrinks by $11 Million

The cross-chain liquidity protocol Maya Protocol was attacked on August 18, with the attacker exploiting six interconnected software vulnerabilities to create false account balances, stealing approximately 20.83 BTC (about $1.34 million) and other assets, resulting in a total direct loss of about $1.65 million. The incident led to the suspension of trading on the MAYAChain network, with its token CACAO plummeting nearly 89% from $0.115 to $0.013, before recovering to around $0.03.Technical reviews show that the attack began when MAYAChain mistakenly judged a transaction to be lost and triggered a compensation mechanism, but the mechanism miscalculated, adding about 49 million CACAO to a small liquidity pool, while the protocol's reserves only held about 168,000 CACAO. After the transfer failed, the system incorrectly saved the new balance, and the attacker subsequently deposited a very small amount into the liquidity pool, acquiring over 99% of the pool's share and immediately withdrawing 48.87 million CACAO, which was then exchanged for Bitcoin, Ethereum, and other assets.The incident caused the total value of the Maya Protocol liquidity pool to decrease by about $10.9 million, of which approximately $6.4 million was due to the depreciation of CACAO, and about $2.9 million came from arbitrage trading. The team expressed hope that the attacker would return the funds in the form of a bug bounty; otherwise, they would seek to recover losses through investments in channels like Aztec Chain. Maya Protocol has not yet announced a specific time for resuming trading. This incident once again exposed the security risks within the complex logic of DeFi protocols.

first_img Bitcoin's volatility has narrowed to historic lows, and traders are turning to AI and prediction markets

According to CoinDesk, Bitcoin has recently shown unusually calm performance, achieving an annualized volatility of about 42% on the 30th, narrowing the gap with the S&P 500's 18% to the narrowest level on record. After narratives related to Trump and corporate treasury buying, the market has entered a prolonged compression range. Edmond Goh, Global Trading Head at B2C2, stated that retail funds are shifting towards AI stocks, tokenized stocks, and prediction markets; TradFi high-frequency trading and risk models are improving efficiency, with open interest nearing historical lows, further suppressing volatility.Shiliang Tang, Partner at Monarq Asset Management, mentioned that Bitcoin is in a price stalemate, with upward pressure from corporate treasury sell-offs (such as Strategy, MARA) and limited downward movement due to speculative leverage clearing and net accumulation in long-term wallets. Strategy has sold about 7,000 BTC by 2026. Paul Howard, Senior Director at Wincent, pointed out that institutional ETFs and DAT are driving market maturity, while clarity in U.S. regulation (CLARITY Act) is still pending, and low volatility has led to a decrease in trading volume.Greg Cipolaro from NYDIG stated that short-term traders are chasing 5x or 10x returns, with target options expanding to Nvidia, gold, perpetual stock contracts, 0DTE options, or sports event contracts. Retail in South Korea is shifting from crypto to domestic AI-related stocks, with Upbit and Bithumb's trading volume significantly dropping year-on-year. Trading in traditional asset perpetuals on crypto platforms and prediction markets like Kalshi and Polymarket has seen a significant increase.

hot_img The Shanghai court in China analyzes the criminal responsibility determination in cases of "traffic diversion" fraud involving virtual currency, which may constitute complicity in fraud or illegal use of information networks

The Shanghai Intermediate People's Court has published typical cases, analyzing whether "traffic personnel" involved in telecommunications network fraud related to virtual currencies constitute accomplices in fraud. From February 2022 to April 2023, the defendants, for the purpose of profit, assisted upstream fraudulent activities by "draining traffic," using online virtual phone software to lure victims into related scam groups, ultimately causing 30 victims to be defrauded of more than 2.34 million yuan (the same currency hereafter) by an overseas fraudulent organization. The overseas fraudulent organization transferred funds into the suspects' trading accounts via virtual currency.The Shanghai First Intermediate People's Court pointed out that in telecommunications network fraud cases, "traffic personnel" may constitute accomplices in fraud or illegal use of information networks depending on specific circumstances. The key lies in determining whether they have formed a clear criminal intent connection with the upstream fraudulent organization and whether there is stable cooperation and division of labor. In judicial practice, when assessing the criminal responsibility of "traffic personnel," factors such as their role in the criminal chain, the degree of organizational management, connections with upstream criminals, methods of profit, and abnormal behavior should be comprehensively considered. Actions that only provide general online services and do not form a conspiracy to commit fraud should be distinguished from "draining" actions that knowingly participate in the implementation of fraud.

first_img BitMart founder Sheldon responded to the employee accountability statement, claiming the content is false and will report to the police

BitMart founder Sheldon stated that regarding the public accountability statement released by a BitMart employee through the official Twitter account, he has completed the collection of evidence related to the content and claims that the information is all false. Sheldon indicated that he will report to the police during the day in the United States and send a lawyer's letter to the X platform, requesting technical and data evidence collection regarding the relevant content. Sheldon also stated that employee assets do not take precedence over customer assets, and everyone is a customer, with no privileges existing. Previously, BitMart employees publicly questioned the whereabouts of platform assets and related handling situations. Sheldon had previously stated that he would respond to the whereabouts of platform assets by the 19th.Blockchain investigator ZachXBT posted on the X platform questioning the BitMart exchange. In response to the relevant account, he stated that if BitMart indeed has sufficient liquidity, it should directly return the funds to all users instead of issuing vague statements. ZachXBT pointed out that BitMart's related actions have caused real users to be unable to use their funds normally, and there is insufficient transparency. This statement has raised market concerns about the safety of the exchange's funds and operational transparency.
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