Crypto News Round-up: Concerns for Crypto Security and Regulations
Cryptocurrency market saw major developments today. The burgeoning asset class saw chaotic winds around that were filled with concerns. From the increasing phishing attacks, and hacking of a DeFi protocol, to the SEC’s asserting crypto crackdown; there is a lot that happened in the crypto sphere recently.
Celsius Creditors Face Rising Phishing Attacks
As the bankruptcy proceedings of Celsius Network, a crypto lending firm, approach its conclusion, creditors are encountering a surge in phishing attacks. Scammers are targeting individuals involved in the insolvency process, posing as the bankruptcy services platform, Stretto, and even impersonating Celsius.
The increase in phishing attempts highlights the persistent threat of cyberattacks in the cryptocurrency space, especially during complex legal processes like bankruptcy. Crypto users are urged to exercise extreme caution, verify the authenticity of communications, and double-check website URLs to protect their assets from fraudulent activities.
As the voting deadline for a proposed settlement plan nears, experts emphasize the need for vigilance to safeguard personal information and crypto holdings during this critical phase.
DeFi Protocol Balancer Hack Endangered $238K
Balancer, a prominent Ethereum-based Decentralized Finance (DeFi) protocol, has fallen victim to an ongoing attack, triggering an investigation. The protocol has cautioned users not to engage with its interface until further notice, as was posted on X (formerly Twitter) on September 19, 2023.
Balancer has disclosed that the incident is currently under scrutiny, refraining from confirming whether user funds were compromised. However, contributor Cosme Fulanito has reassured that the platform’s vault remains secure.
Security experts, including PeckShield and blockchain analyst ZachXBT, have estimated the theft to amount to approximately $238,000 in cryptocurrency. Balancer’s breach serves as a reminder of the vulnerabilities within the DeFi sector and the importance of continuous vigilance in the face of such attacks.
SEC’s Crypto Crackdown: Warning Shots Fired
The U.S. Securities and Exchange Commission (SEC) is intensifying its scrutiny of the cryptocurrency space, including crypto exchanges and DeFi (Decentralized Finance) projects, for potential violations of securities laws. David Hirsch, head of the SEC’s crypto assets and cyber unit, issued a stern warning that the agency is contemplating more enforcement actions against crypto exchanges, brokers, and DeFi projects that fail to meet disclosure requirements or register with the SEC.
The SEC’s regulatory enforcement is expanding beyond major U.S.-based crypto exchanges to target other exchanges, intermediaries, and DeFi projects. Hirsch revealed this during a speech at the Securities Enforcement Forum Central in Chicago on September 19, 2023. He emphasized the SEC’s commitment to bringing charges against those who breach securities laws, including intermediaries like brokers and clearing agencies.
Hirsch clarified that merely labeling an operation as “DeFi” will not evade SEC enforcement. The agency is already engaged in numerous litigations but acknowledges limitations due to resource constraints.
Recent actions by the SEC include lawsuits against major U.S.-based crypto exchanges, like Coinbase, for offering unregistered securities. The SEC’s ongoing legal battle with Ripple Labs centers on similar claims regarding XRP. Additionally, the SEC is scrutinizing NFT projects, emphasizing the economic reality of offerings over their labels.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
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