The attack was unusual in that it lasted almost two weeks, going unnoticed because it was draining pools slowly enough that the Levana team assumed it was organic activity. However, when the network became congested, the attack suddenly became more profitable — and more noticeable.
DCG, meanwhile, is in the middle of financial difficulties and ongoing legal battles, including a lawsuit from the New York Attorney General alleging a $1 billion fraud by DCG and its Genesis subsidiary. The lawsuit from the NYAG also names Silbert personally.
Telcoin later announced that they "plan[ned] to restore all wallets to their previous balances", though did not say whether or how they would be making up the $1.25 million deficit.
On December 25, Tether minted 1 billion of its USDT dollar-pegged stablecoin. CEO Paolo Ardoino announced on Twitter that the mint was an "authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps". This seems to be a recent trend for Tether, as similar language was used for a $1 billion mint in September.
The activity has raised more questions around where the real money backing Tether is coming from, and if it even exists at all. Some have argued that these recent Tether mints are being used to artificially inflate the price of Bitcoin, which has been on an upward trend since mid-October.
Megabot had advertised itself as an AI trading bot that would earn users "up to 30% monthly". The team had promised that the bot would perform trades while "sidestepping potential risks such as honeypots, rugs, and slow rugs".
"No one will be able to rug you anymore", their website boasted. Ah, well.
The SEC charged that the group had not registered their sale of the bonds as was required under US securities laws. BarnBridge shut down very shortly after the complaint was filed, without any input from its community, despite ostensibly being community governed.
- "BarnBridge DAO Agrees to Stop Unregistered Offer and Sale of Structured Finance Crypto Product", Securities and Exchange Commission press release [archive]
Catalyx announced in a press release on December 28 that they had "recently discovered a security breach on the Platform in connection with the holding of crypto assets on behalf of clients. Management suspects that this security breach, which may involve an employee, has resulted in the loss of a portion of the crypto assets held by the Company on behalf of its clients".
Catalyx did not state how much had been stolen.
- Interim Cease Trade Order by the Alberta Securities Commission [archive]
- "CatalX CTS Ltd. Announces Security Breach, Loss of Crypto Assets and Ongoing Investigation", press release by Catalyx [archive]
Qredo had already been forced to perform layoffs in September and then November, and in November was searching for a rescue after saying their user "activity ha[d] fallen" in the "prolonged cryptowinter".
On December 15, Qredo had also announced that they would be shutting down their Ankex trading platform, which was previously led by Michael Moro, who was previously booted as CEO from Genesis Trading.
The Aurory team posted on Twitter to acknowledge the hack, writing that they'd disabled SyncSpace as they investigated. They also wrote that SyncSpace had been audited months ago, but that the audit had failed to detect the vulnerability.