OKX Suffers $2.7M Hack 💸

GM. This is Degen Scoop. It’s Thursday, this is what we’re covering today:

• OKX Suffers $2.7M Hack 💸

• FASB Upgrades Rules 📜

• Coinbase Goes International ✈️

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

OKX Suffers From $2.7M Hack

OKX's DEX aggregator experienced a $2.7M exploit, likely due to the leakage of the DEX's admin private key. OKX confirmed the compromise of a deprecated smart contract on its DEX, promising to secure user funds and reimburse affected users.

Security analysts from SlowMist and PeckShield verified the exploit, indicating losses of approximately $2.7 million in crypto assets. The attacker may be linked to other exploits, including LunaFi, Uno Re, and RVLT. Users authorized token exchanges through the TokenApprove contract, and the attack might be a result of the Proxy Admin Owner's private key being leaked.

FASB Improves Crypto Asset Disclosure

The Financial Accounting Standards Board (FASB) has issued new standards to improve the disclosure of certain crypto assets. The updated rules permit firms to use fair-value accounting for specific crypto assets held on their balance sheets, replacing the previous "indefinite-lived intangible asset accounting model."

You might be thinking, “Cool, why does this matter at all?” Great question, because otherwise this sounds like a relatively uninteresting development that wouldn’t be normally mentioned in the newsletter. The thread below is more exhaustive, but the TLDR is that an accounting barrier has been removed and the PnL will be recognized on the income sheet.

The new standards will become effective for fiscal years beginning after Dec. 15, 2024, with the option for earlier adoption. The guidelines apply to intangible assets created on a distributed ledger, secured through cryptography, and not providing enforceable rights or claims on underlying goods, services, or assets. The changes aim to provide more relevant information and reduce complexity in accounting practices.

Coinbase Adds International Spot Trading

Coinbase is expanding its international exchange services to include spot crypto trading, moving beyond its U.S. focus and aiming at lost Binance market share. For Coinbase bulls, this is great news as spot trading is one of the exchange’s largest revenue sources during the bull market.

The expansion, initially focused on derivatives, will introduce spot trading in phases, beginning with bitcoin and ether against USDC from December 14 for institutional clients. The easier it is for institutional clients to onboard funds to the ecosystem, the more likely it is that they join.

The move comes as Coinbase aims to gain experience and assess demand for spot products, potentially paving the way for U.S. approval. Bitcoin's surge, driven by anticipation of a spot Bitcoin ETF, has fueled interest in crypto trading platforms. Coinbase's shares, up fourfold this year, edged 0.5% higher following the announcement.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.