Cybersecurity Firm Halborn Warns of Zero-Day Vulnerabilities in Over 280 Blockchain Networks

A cybersecurity firm, Halborn, has recently warned of a vulnerability that could put over 280 blockchain networks at risk of zero-day exploits, potentially exposing at least $25 billion worth of crypto. The vulnerability, which Halborn has dubbed “Rab13s,” could have significant consequences for the affected networks, and Halborn has already worked with some networks, such as Dogecoin, Litecoin, and Zcash, to institute a fix.

The warning comes after Halborn was contracted in March 2022 to conduct a security review of Dogecoin’s codebase and found “several critical and exploitable vulnerabilities.” Halborn later discovered that these same vulnerabilities “affected over 280 other networks,” which risked billions of dollars worth of cryptocurrencies.

Halborn outlined three vulnerabilities, with the most critical one allowing an attacker to “send crafted malicious consensus messages to individual nodes, causing each to shut down.” These messages over time could expose the blockchain to a 51% attack, where an attacker controls the majority of the network’s mining hash rate or staked tokens to make a new version of the blockchain or take it offline.

Halborn found other zero-day vulnerabilities that would allow potential attackers to crash blockchain nodes by sending Remote Procedure Call (RPC) requests – a protocol allowing a program to communicate and request services from another. However, Halborn added that the likelihood of RPC-related exploits was lower, as it required valid credentials to undertake the attack.

Halborn warned that due to codebase differences between networks, not all the vulnerabilities were exploitable on all the networks, but at least one of them may be exploitable on each network. The cybersecurity firm said it was not releasing further technical details of the exploits due to their severity and added that it made a “good faith effort” to contact all affected parties to disclose the potential exploits and provide remediation for the vulnerabilities.

While Dogecoin, Zcash, and Litecoin have already implemented patches for the discovered vulnerabilities, Halborn warned that hundreds of other networks could still be exposed. The potential for these zero-day exploits to impact billions of dollars worth of cryptocurrencies underscores the importance of strong cybersecurity measures and regular security audits for blockchain networks. As the adoption of blockchain continues to grow, it is likely that hackers will continue to target vulnerabilities in these networks, making the need for robust security measures all the more critical.


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Depegging of USDC and DAI Saves Borrowers $100 Million

Over the weekend, the depegging of two major stablecoins, USD Coin (USDC) and Dai (DAI), from the US dollar prompted a frenzy of loan repayments on decentralized lending protocols Aave and Compound. Borrowers saved a total of over $100 million in the process.

The depegging was triggered by the collapse of Silicon Valley Bank on March 10, which raised concerns about USDC’s reserves being locked at the bank. This led to the USDC price dropping to lows of $0.87 on March 11. MakerDAO’s stablecoin DAI also de-pegged briefly, going as low as $0.88 on the same day.

According to a report by digital assets data provider Kaiko, more than $2 billion in loan repayments were made on March 11, with more than half of them in USDC. Another $500 million in debts were paid in DAI on the same day. However, repayment activity tapered off as both USDC and DAI started heading back toward their peg.

The depegging of USDC and DAI led to borrowers saving a significant amount of money. Blockchain analytics firm Flipside Crypto estimates that USDC debtors saved $84 million, while those using DAI saved $20.8 million. This is because borrowers were able to pay back their loans while the stablecoins were de-pegged, allowing them to take advantage of the lower prices.

The depegging also had wider implications for the DeFi ecosystem. The Kaiko report noted that the price dislocations generated countless arbitrage opportunities across the ecosystem and highlighted the importance of USDC.

The depegging of USDC also led MakerDAO to reconsider its exposure to the stablecoin, as crypto projects incorporating DAI in their tokenomics suffered losses due to a chain reaction.

However, Circle’s USDC began its climb back to $1 following confirmation from CEO Jeremy Allaire that its reserves were safe and the firm had new banking partners lined up, along with government assurances that depositors of SVB would be made whole. According to CoinGecko data, USDC was sitting at $0.99 at the time of writing.

Overall, the depegging of USDC and DAI from the US dollar resulted in significant loan repayments and savings for borrowers. It also highlighted the importance of stablecoins in the DeFi ecosystem and the need for proper risk management in the use of these assets.


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Bitcoin’s Market Cap Surpasses Meta’s Despite Turbulent Week for Crypto

Bitcoin, the world’s most popular cryptocurrency, has managed to flip the market cap of tech giant Meta, despite a turbulent week for the crypto market following the downfall of Silicon Valley Bank (SVB) and Signature Bank. According to Companies Market Cap, Bitcoin’s market cap has reached $471.86 billion, surpassing Meta’s $469 billion.

Companies Market Cap provides real-time monitoring and ranking of market caps for cryptocurrencies, public companies, precious metals and exchange-traded funds. Only 24 hours earlier, BTC’s market cap was nearly $37 billion below Meta’s, sitting at $433.49 billion. However, Bitcoin’s market cap rose 9.7% in the past 24 hours, pushing the cryptocurrency to sit in the 11th spot among top assets by market cap, just below electric vehicle maker Tesla.

The crypto market has been experiencing a lot of turmoil lately, with the downfall of SVB and Signature Bank causing significant drops in the market. SVB, a key player in the cryptocurrency space, announced that it was shutting down all of its crypto-related accounts, while Signature Bank was sued by the New York Attorney General for allegedly facilitating money laundering for a cryptocurrency exchange.

Despite these setbacks, Bitcoin has managed to bounce back and surpass Meta’s market cap. The gap between the two market caps is now more than $20 billion, though it still is quite a distance from gold, which sits in first position with a $12.59 trillion market cap, followed by Apple in second place with a $2.380 trillion market cap.

Bitcoin’s price has risen 8.72% in the past 24 hours, sitting at $24,441. This price surge could be attributed to various factors, such as increased institutional adoption of Bitcoin and positive sentiment around the crypto market in general.

Bitcoin has been gaining popularity among investors and companies alike, with Tesla investing $1.5 billion in the cryptocurrency earlier this year. Other major companies, such as Square and MicroStrategy, have also invested heavily in Bitcoin as a hedge against inflation and a potential store of value.

Despite its popularity, Bitcoin still faces significant challenges, such as regulatory uncertainty and concerns around energy consumption. Many countries are still grappling with how to regulate cryptocurrencies, which could impact the market’s growth and adoption.

Additionally, Bitcoin’s energy consumption has been a topic of controversy, with some critics arguing that the amount of energy used to mine and transact the cryptocurrency is unsustainable and harmful to the environment. However, proponents of Bitcoin argue that its energy consumption is necessary to maintain the security and decentralization of the network.

In conclusion, Bitcoin’s market cap surpassing Meta’s despite the turbulent week for crypto is a positive sign for the cryptocurrency market. However, it still faces significant challenges that could impact its growth and adoption in the future.


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Overnight collapse of two traditional banks triggers chaos

On March 11, the financial world was rocked by the sudden collapse of two major traditional banks, Silicon Valley Bank and Signature Bank. This triggered a series of events that impacted millions of businesses, venture capitalists, and bottom-line investors alike. One of the most significant effects of this collapse was the depegging of several stablecoins, including USD Coin (USDC), USDD (USDD), and Dai (DAI), from the U.S. dollar. Circle, the company that issues USDC, announced that $3.3 billion of its $40 billion reserves were stuck in SVB, causing the depegging of the stablecoins.

This news sent shockwaves through the financial community, and many worried about the potential fallout from the collapse of these banks. However, United States President Joe Biden quickly stepped in to reassure taxpayers that they would not feel the burn. The federal government took swift action to protect depositors, ensuring that they would not lose their money as a result of the banks’ collapse.

Biden also made it clear that those responsible for the banks’ collapse would be held accountable. He vowed to investigate the matter thoroughly and take action against anyone found to be responsible. This announcement was welcomed by many in the financial community, who had feared that the collapse of these banks would go unpunished.

The collapse of Silicon Valley Bank and Signature Bank was a significant event in the financial world. These banks were both well-established institutions with many clients and significant assets. The sudden collapse of these banks had far-reaching consequences, and many businesses and individuals suffered losses as a result.

However, the fallout from this event was not limited to those directly impacted by the banks’ collapse. The depegging of stablecoins from the U.S. dollar caused significant disruption in the cryptocurrency market. Stablecoins are widely used as a way to move money quickly and cheaply between different exchanges and platforms. When stablecoins depegged from the U.S. dollar, this caused significant uncertainty and volatility in the cryptocurrency market.

Overall, the collapse of Silicon Valley Bank and Signature Bank was a wake-up call for the financial industry. It highlighted the importance of strong regulation and oversight to prevent such events from happening in the future. While the federal government’s swift action helped to mitigate the damage caused by the banks’ collapse, there is still much work to be done to ensure the stability and resilience of the financial system as a whole.


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Stargate Foundation advised against reissuing STG token

In March 2022, Alameda Research, the former cryptocurrency trading firm, purchased the entire STG auction for $25 million. However, in November of the same year, FTX declared bankruptcy, following which FTX and Alameda’s wallets were hacked for roughly $500 million. The liquidators eventually transferred all assets to new wallets.

In light of these events, Stargate Foundation has proposed reissuing the STG token to move the funds from the potentially compromised wallet to a safer one. However, FTX liquidators have rejected this proposal citing concerns that such a move would violate the automatic stay and could result in legal repercussions.

Stargate DAO maintains that the liquidators’ concerns are unfounded and that reissuing the STG token would not violate the automatic stay. Despite the efforts of exchanges, protocols, and external parties to ensure the security of funds, the foundation is standing by its recommendation against reissuing the STG token due to the opinion of FTX liquidators.

Stargate Foundation is a decentralized autonomous organization (DAO) focused on developing decentralized technologies and solutions. It is built on a blockchain-based platform and is run by a community of individuals who hold STG tokens.

The STG token is the native token of Stargate Finance, a decentralized finance (DeFi) platform that allows users to earn interest and other rewards by providing liquidity to various protocols. The token is used to facilitate transactions on the Stargate Finance platform and is also used as a governance token for voting on proposals and decisions related to the platform’s development and operations.

The bankruptcy of FTX and the subsequent hack of its and Alameda’s wallets have raised concerns about the security of the STG tokens held by the liquidators. In response, Stargate Foundation proposed reissuing the tokens to move the funds to a safer wallet.

However, FTX liquidators have expressed concerns that such a move could violate the automatic stay and result in legal repercussions. The automatic stay is a legal injunction that prevents creditors from collecting on debts or seizing assets of a debtor who has filed for bankruptcy.

Stargate DAO maintains that reissuing the tokens would not violate the automatic stay as the tokens are not considered assets of the debtor but rather a digital asset governed by smart contracts. The DAO argues that the liquidators’ concerns stem from a lack of understanding of how smart contracts work and how they interact with the STG token to secure the funds.

Despite this disagreement, Stargate Foundation is standing by its recommendation against reissuing the STG token, citing the opinion of FTX liquidators as a significant factor in its decision. The foundation recognizes the importance of maintaining trust and confidence in the Stargate Finance platform and is taking all necessary measures to ensure the security of its users’ funds.

In conclusion, the Stargate Foundation’s recommendation against reissuing the STG token highlights the importance of transparency and communication in the DeFi space. The incident also underscores the need for clear guidelines and regulations to ensure the security of decentralized finance platforms and protect investors’ interests.


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Euler Finance suffers $197M DeFi hack

Euler Finance, a DeFi lending protocol, suffered a flash loan attack on March 13, resulting in the biggest hack of crypto in 2023 so far. The lending protocol lost nearly $197 million in the attack, impacting more than 11 other DeFi protocols as well. Euler Finance disabled the vulnerable etoken module and vulnerable donation function to block deposits.

On March 14, Euler Finance updated its users on the situation and notified them of the disabled features. The firm stated that it works with various security groups to perform audits of its protocol, and the vulnerable code was reviewed and approved during an outside audit. However, the vulnerability remained on-chain for eight months until it was exploited, despite a $1 million bug bounty in place.

Sherlock, an audit group that has worked with Euler Finance in the past, verified the root cause of the exploit and helped Euler submit a claim. The audit protocol later voted on the claim for $4.5 million, which passed, and later executed a $3.3 million payout on March 14.

In its analysis report, the audit group noted a significant factor for the exploit: a missing health check in “donateToReserves,” a new function added in EIP-14. However, the protocol stressed that the attack was still technically possible even before EIP-14.

Sherlock noted that the Euler audit by WatchPug in July 2022 missed the critical vulnerability that eventually led to the exploit in March 2023. Euler has also reached out to leading on-chain analytic and blockchain security firms, such as TRM Labs, Chainalysis, and the broader ETH security community, in a bid to help them with the investigation and recover the funds.

Euler Finance has notified that they are also trying to contact those responsible for the attack in order to learn more about the issue and possibly negotiate a bounty to recover the stolen funds. The incident highlights the need for regular audits of DeFi protocols to detect vulnerabilities and prevent hacks. As DeFi continues to grow and attract more users, security and reliability will become even more critical for the industry’s success.


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FTX Continues to Move Funds Amid Ongoing Investigations

FTX, a cryptocurrency exchange, has reportedly moved around $145 million in stablecoins across various platforms, according to Lookonchain. Three wallets associated with FTX and its subsidiary, Alameda Research, transferred 69.64 million Tether (USDT) and 75.94 million USD Coin (USDC) to custodial wallets on platforms like Coinbase, Binance, and Kraken. FTX and Alameda are currently facing demands to return funds to different groups of investors as the cryptocurrency exchange continues to grapple with ongoing investigations and lawsuits.

The FTX bankruptcy case has been ongoing for some time, with the troubled exchange already recovering $5 billion in cash and liquid cryptocurrencies by January 2023, according to FTX attorney Andy Dietderich. However, the total liabilities of the exchange are said to exceed $8.8 billion.

In the latest development in the FTX bankruptcy case, Alameda Research sold its remaining interest in venture capital firm Sequoia Capital to a company owned by the government of Abu Dhabi for $45 million. Meanwhile, Alameda Research filed a lawsuit against Grayscale Investments in the Court of Chancery in Delaware seeking to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts and realize over a quarter billion dollars in asset value for the FTX Debtors’ customers and creditors,” according to a statement.

As lawsuits and investigations continue to pile up against FTX, some plaintiffs requested the consolidation of lawsuits against the bankrupt exchange. However, United States District Judge Jacqueline Corley recently denied the request, stating that the defendants have not yet been allowed to respond.

FTX was founded in 2019 by Sam Bankman-Fried and Gary Wang and has quickly become one of the largest cryptocurrency exchanges by trading volume. The exchange offers a range of crypto trading products, including futures, options, and leveraged tokens. The exchange has also attracted significant investment, with firms like Paradigm, Sequoia Capital, and Thoma Bravo investing in the exchange.

However, FTX has faced a series of setbacks in recent months. In December 2021, the exchange suffered a security breach, leading to the theft of $95 million worth of cryptocurrencies. The exchange was also hit with a lawsuit in January 2022 by a group of investors claiming that FTX and its executives misled investors about the exchange’s financial health.

FTX’s troubles have continued to mount, with the exchange facing investigations by the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over allegations of market manipulation and insider trading. In February 2022, FTX was also hit with a class-action lawsuit by investors alleging that the exchange engaged in illegal market manipulation.

In response to the lawsuits and investigations, FTX has hired a team of high-profile lawyers and public relations experts to defend the exchange and its executives. However, the ongoing investigations and lawsuits continue to cast a shadow over the future of the cryptocurrency exchange.


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Cryptocurrency Firms Deny Exposure to Troubled US Banks

In recent years, the cryptocurrency industry has seen significant growth, with new exchanges, wallets, and other services popping up almost daily. However, the industry has also faced numerous challenges, including regulatory scrutiny, hacking attacks, and volatile market conditions.

The ongoing banking crisis in the United States is the latest challenge facing the industry. Several major U.S. banks, including Silicon Valley Bank (SVB) and Signature Bank, have been dissolved due to financial difficulties, leaving customers and partners uncertain about the safety of their funds.

To address these concerns, major cryptocurrency firms have taken to social media to assure their users that they have no exposure to the troubled banks and that their funds are safe and accessible.

Tether, the operator of the largest stablecoin by market capitalization, with a market value of $73 billion, was one of the first companies to deny exposure to SVB and other troubled U.S. banks. Tether’s chief technology officer, Paolo Ardoino, took to Twitter to announce that the stablecoin company has zero exposure to Signature Bank.

Similarly, Kris Marszalek, CEO of major cryptocurrency exchange, provided similar statements on the company being unaffected by the ongoing issues in U.S. banking.

Other major exchanges, including Gemini and BitMEX, have also denied any exposure to the dissolved U.S. banks.

Despite having a partnership with Signature, Winklevoss brothers-founded Gemini exchange has zero customer funds and zero Gemini dollar (GUSD) funds held at the bank, the firm announced on March 13.

BitMEX exchange also took to Twitter on March 13 to announce that the company had “no direct exposure” to Silvergate, SVB, or Signature, and that all user funds continue to be safe and accessible 24/7/365.

Exchanges like Binance and Kraken have partly denied exposure to the dissolved banks, with Binance CEO Changpeng Zhao stating that Binance does not have assets at Silvergate, and former Kraken CEO Jesse Powell also denying exposure to SVB.

Bitcoin mining firm Argo Blockchain issued a statement on March 13, declaring that the company has no direct or indirect exposure to SVB and Silvergate Bank. However, the company said that one of Argo’s subsidiaries holds a “portion of its operating funds in cash deposits” at Signature, which the company stated were secure and not at risk.

A number of other firms, including Animoca Brands, Abra, and Alchemy Pay, have partly denied exposure to the troubled U.S. banks, stating that they had no assets at SBV and Silvergate.

Some companies, like crypto custodian BitGo, declared that it holds no assets at SVB while being “not impacted” by issues at Silvergate, USD Coin, and Signature Bank.

In conclusion, the ongoing banking crisis in the United States has raised concerns among customers and partners of dissolved U.S. banks. However, major cryptocurrency firms have taken proactive measures to address these concerns and assure their users that their funds are safe and accessible despite the ongoing issues in the U.S. banking system. The response from the industry demonstrates its resilience and commitment to providing reliable and secure financial services to its users.


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Bitcoin Surges as US Inflation Rises

Bitcoin, the world’s largest cryptocurrency, experienced a surge in price following the release of the US Department of Labor’s latest Consumer Price Index (CPI) data for February 2023. The CPI, which measures the average change in consumer prices for a basket of goods and services, rose 0.4% last month on a seasonally adjusted basis. The all-items index denoting inflation increased by 6% over the last year, with the Labor Department noting that this was the lowest 12-month increase since September 2021.

The news of rising inflation had a mixed impact on conventional markets, with volatility being reported. However, the cryptocurrency markets reacted positively, with Bitcoin and Ether experiencing surges in price, according to data from CoinMarketCap. This suggests that investors are turning to digital assets as a potential hedge against inflation.

The CPI is calculated by the Bureau of Labor Statistics and is used as an indicator of inflation. It reflects the spending patterns of consumers on items such as food, housing, transportation, clothing, medical care, and recreation. The index is used to adjust wages, benefits, and social security payments for inflation, measure economic performance, and set monetary policy.

The US Labor Department’s statement notes that the shelter index was the largest contributor to the monthly all-items increase, accounting for 70% of February 2023’s CPI increase. Indexes for food, recreation, household furnishings, and operations also contributed. The food index increased by 0.4% last month, while the food at home index rose 0.3%. The energy index decreased by 0.6%, while natural gas and fuel oil indexes also declined in February.

The rise in inflation has been attributed to a number of factors, including supply chain disruptions, increased demand for goods and services, and rising energy costs. These factors have put pressure on businesses to increase prices, which has contributed to the overall rise in consumer prices.

The news of rising inflation comes at a time when the global economy is still recovering from the effects of the COVID-19 pandemic. Many countries are still grappling with high levels of unemployment and reduced economic activity, which has led to concerns about the sustainability of the recovery. The rise in inflation adds another layer of uncertainty to an already challenging economic environment.

In conclusion, the rise in inflation has had a mixed impact on financial markets, with cryptocurrency markets experiencing a surge in price. This suggests that investors are turning to digital assets as a potential hedge against inflation. While the rise in inflation is a concern, it remains to be seen whether it will have a significant impact on the global economy in the long term.


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Polygon Launches Web3 .polygon Domains with Unstoppable Domains

Polygon, a popular Ethereum scaling solution, has announced a partnership with Unstoppable Domains to enable users to create Web3 .polygon domain names. With this new offering, users will be able to log into Web3 applications, make use of human-readable wallet addresses, and create decentralized websites. The service will be available to an estimated 180 million users and 40,000 services across the Polygon blockchain ecosystem.

Unstoppable Domains, a blockchain domain provider, leverages Polygon to mint decentralized domains with zero gas fees. To date, over 2.7 million domains have been registered on the Polygon blockchain. Users will be able to use .polygon domains to create digital identities that are compatible across 750 applications, games and metaverse platforms. These can be used to login to web apps, as cryptocurrency wallet addresses and decentralized websites.

In addition to providing decentralized domain names, Unstoppable Domains also allows users to create profiles that can be connected to social media channels, acting as a digital identity across Web3 platforms and networks. A statement from Polygon Labs’ Vice President of Business Development, Sanket Shah, highlighted the importance of unlocking user-owned digital identity for Polygon users. He said, “Web3 domains will give our community a digital identity that they fully own, so they can log into dapps without giving away their personal information and transact crypto without lengthy wallet addresses.”

Unstoppable Domains will also offer access to premium .polygon gaming and digit domains from March 16. Decentralized domain services like Unstoppable Domains and Ethereum Name Service (ENS) have become increasingly popular over the past year, seeing considerable growth in domains registered.

In August 2020, American cryptocurrency exchange Coinbase partnered with Unstoppable Domains to offer payments through domain handles instead of cryptographic addresses. Coinbase then partnered with ENS in September 2022 to provide users with free “” usernames in an effort to replace alpha-numeric wallet addresses with human-readable alternatives.

Overall, the partnership between Polygon and Unstoppable Domains will provide a more user-friendly experience for interacting with Web3 applications, as users will no longer need to rely on lengthy wallet addresses or give away personal information. With digital identity becoming increasingly important in the blockchain space, this offering could be a significant step forward in creating a more accessible and user-owned Web3 ecosystem.


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