Poloniex Hacked For $126M 💸

GM. This is Degen Scoop. It’s Monday, here’s what happened over the weekend:

• Poloniex Hacked For $126M 💸

• FTX Sues Bybit For ~$1B ⚖️

• Tokenized Treasuries 💵

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Poloniex Hacked For $126M, Working With Other Exchanges To Recover Funds

Poloniex, an exchange owned by Justin Sun, fell victim to a hack resulting in the unauthorized transfer of more than $126M worth of assets. The suspicious transactions were initially highlighted by blockchain security firm Peckshield and later corroborated by data from the blockchain explorer Etherscan and Arkham Intelligence.

A closer look at the hacker's activity reveals the stolen assets were sent to one wallet before being transferred to a second one. The assets were then exchanged using the MetaMask swapping feature. There was a notable instance where the hacker accidentally sent $2.5 million in stolen GLM to the token contract effectively burning it forever.

Poloniex responded to the incident by temporarily disabling its wallet for maintenance. Sun mentioned collaboration with other exchanges to facilitate the recovery of the misappropriated assets. While hacks seemingly happen every other day in this industry, the loss of $120M is a huge hit.

FTX Estate Sues Bybit & Others To Recover ~$1B in Assets Withdrawn Prior to FTX Collapse

The FTX bankruptcy estate has filed a lawsuit against ByBit, Mirana, and several executives. The suit aims to recover ~$1B in cash and assets that ByBit allegedly withdrew from FTX just before its collapse. The lawsuit claims that ByBit utilized its "VIP" access and close relationship with FTX staff to withdraw funds.

FTX employees reportedly prioritized Mirana's "huge withdrawals," resulting in over $327M in transfers. The lawsuit also alleges that ByBit restricted the FTX estate from withdrawing over $125M in assets from ByBit, using them as leverage. Additionally, the suit accuses ByBit of controlling BitDAO (now Mantle) while presenting it as decentralized.

ByBit allegedly sought to reverse a token swap with FTX, leading to a dispute and subsequent community vote that favored restricting FTX from converting its tokens. The lawsuit seeks "actual and punitive damages" from ByBit related to the token scheme and the assets held on its exchange.

Midas To Offer Tokenized Treasuries On-Chain

Midas, a new player in the convergence of TradFi and crypto, is gearing up to launch its stablecoin, stUSD, on DeFi platforms such as MakerDAO, Uniswap, and Aave in the coming weeks.

The project distinguishes itself by backing its stablecoin with U.S. Treasuries, aiming to capitalize on the higher yields offered by current interest rates. What makes Midas notable compared to other protocols, is that it plans to acquire Treasuries through asset manager BlackRock and facilitate the onboarding process using Circle’s USDC.

With institutional partners like Fireblocks and Coinfirm, Midas aims to tokenize TradFi assets, bringing them into the DeFi ecosystem. The stUSD token will be 100% backed by U.S. Treasuries and issued as a debt security under German law. The project anticipates joining DeFi platforms in the current quarter and targeting a retail launch early next year.

The BIGGEST NFT Sales Over the Weekend:

Notable Threads You Might Have Missed:

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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.