Web3 Daily | Three VCs sue Curve founder for commercial fraud; Magic Eden launches Bitcoin domain name inscription forging function.

Top News:

1. Ethereum ACDE conference is expected to be upgraded in Cancun before the end of 2023. Ethereum developers have reached a consensus on the Dencun upgrade in all aspects.

2. Three VCs including 1kx jointly sued Curve founder for fraud and misappropriation of trade secrets, resulting in their own interests being damaged.

3. Magic Eden launches Bitcoin domain name inscription forging function for .sats and .magic domains.

4. NFT trading protocol SudoSwap launches V2 version, including on-chain royalties, gas optimization, and other new features.

5. Optimism launches "Bedrock" upgrade commemorative NFT.

Project Updates

CZ: All user funds on Binance.US are recorded and have never left the platform unless withdrawn.

Binance CEO CZ responded to CoinDesk's report that "the US SEC said Binance transferred $1.2 billion to an account controlled by the CEO" on social media, stating that "this is completely wrong. As far as I know, Binance.US has a total of about $2 billion in user funds, and this dollar-equivalent number will fluctuate slightly with the price of cryptocurrencies and has recently decreased due to rumors of user withdrawals. All user funds are recorded and have never left our platform (unless users withdraw them themselves)."

1kx, along with two other VC firms, jointly sued Curve's founder for fraud and misappropriation of trade secrets, resulting in their own losses.

According to DL News, three cryptocurrency venture capital firms, ParaFi, Framework Ventures, and 1kx, have jointly sued Curve founder Michael Egorov for fraud and misappropriation of trade secrets, resulting in economic losses for the VCs. The plaintiffs allege in the lawsuit that Egorov deposited the plaintiffs' investment funds into Curve's liquidity pool, resulting in the receipt of CRV tokens and fees as an incentive for providing liquidity.

VC did not receive the promised company equity, nearly $1 million in funds were not returned by Egorov, and VC did not receive the value of CRV worth tens of millions of dollars that they were entitled to. The millions of dollars worth of CRV that Egorov has already sold originally belonged to VC.

Michael Egorov's lawyer stated that "three VCs fabricated a fictional story claiming that Curve's founders asked them to give up 'trade secrets' and $1 million in investment funds."

SPACE ID: Season 2 airdrop is expected to start at the end of June

The decentralized identity protocol SPACE ID officially announced on social media that the SPACE ID Voyage Season 2 will end at 16:00 on June 18th Beijing time. The ID airdrop for Season 2 is expected to begin at the end of June, and the allocation details will be announced at that time. In addition, the ID repurchase proposal draft will be submitted to the DAO forum for review soon and will be executed after a vote by ID holders.

Bitrace: BKEX platform's hot wallet indirectly linked to 568 million risk USDT, with risk funds mainly coming from online gambling platforms and illegal payment platforms.

Bitrace, a cryptographic security organization, issued a statement indicating that it has analyzed the on-chain records of the cryptographic trading platform BKEX and identified 5 Trc20-USDT hot wallet addresses, 522 user risk addresses with fund transactions, and 6591 user unknown risk addresses with fund transactions.

Over the past year, the five main BKEX hot wallet addresses have interacted with over 7113 user addresses. Among them, 522 are risk addresses, with a total of 4001 transfers to BKEX hot wallet addresses, and a risk fund amount of 4.99 million USDT, including 3.61 million USDT from online gambling platforms and gamblers, and 930,000 USDT from illegal third-party payment platforms. This accounts for 2.6% of the total incoming funds.

There was a significant increase in the amount of risk funds transferred in the monthly transfer data of BKEX in May 2023.

Between May 2022 and May 2023, five major Trc20-usdt fund addresses of BKEX received a total of 4.99 million USDT directly from risk addresses, which were indirectly associated with 568 million risk USDT through user addresses. The risk funds mainly came from online gambling platforms and illegal payment platforms.

Therefore, there is a possibility that BKEX may be involved in "money laundering related to user funds and cooperating with law enforcement agencies for investigation", which is consistent with its official announcement. As previously reported by BlockBeats, on May 29th, the cryptocurrency exchange platform BKEX announced that due to recent allegations of "money laundering" involving user funds, BKEX is currently cooperating with the police for evidence collection and has suspended withdrawals.

The Ethereum ACDE conference is expected to be upgraded in Cancun by the end of 2023.

Ethereum core developer Tim Beiko summarized the latest Ethereum execution layer core developer meeting (ACDE) on his social media platform. The meeting ultimately confirmed the EIPs included in the Cancun upgrade, with the core content being EIP-4844. This EIP aims to implement temporary storage and retrieval of off-chain data through Ethereum nodes to meet the data and storage needs of blockchain applications. Other selected EIPs include EIP-1153 (reducing the cost of on-chain storage data to improve block space), EIP-4788, EIP-5656, and EIP-6780.

In addition, the meeting did not make an accurate prediction of the Cancun upgrade time, but it is expected to take place before the end of 2023.

Magic Eden launches Bitcoin domain name inscription minting function for .sats and .magic

NFT marketplace Magic Eden has announced that it has launched the inscription casting function for Bitcoin domains. Users can now cast their selected Bitcoin domains on the platform. Magic Eden will donate 1.5% of the inscription casting fee to the Ordinals Protocol team. The domains currently available for trading on the platform include ".sats", ".magic", ".btc", ".xbt", and ".gm".

Magic Eden stated that the service is currently in the trial phase, and therefore recommends that users conduct their own research (DYOR) and cross-validation of the data.

Circle will launch its cross-chain transfer protocol (CCTP) on Arbitrum on June 27th.

Circle announced that it will launch its cross-chain transfer protocol (CCTP) on Arbitrum on June 27th. Previously, native USDC was launched on Arbitrum on June 8th. CCTP will destroy the tokens on the source chain when users transfer across chains and mint new tokens on the target chain.

X-explore: Multiple CEX users' deposit and withdrawal addresses were replaced by hacker addresses due to malicious plugins

According to X-explore, due to malicious browser plugins, many users' deposit and withdrawal addresses on centralized exchange platforms (CEX) have been replaced by hacker addresses. Since June 2022, there have been hundreds of attacks on dozens of CEXs.

X-explore advises users not to download and install unknown browser extensions/software/applications, and to carefully check withdrawal and deposit addresses in emails.

Solana Foundation: Believes SOL is not a security

欧易 OKX completed the 20th OKB repurchase and destruction, with a total value of approximately 258 million US dollars.

OKX of Europe has announced the completion of the 20th OKB repurchase and destruction. The repurchase started on March 1, 2023 and ended on May 31, 2023. A total of 5,497,312.77 OKBs were repurchased and destroyed for the secondary market, with a value of approximately $258 million (based on the 90-day average price) and have been transferred to a black hole address.  

As of now, Oukei OKX has cumulatively destroyed 64,042,314.70 OKB, and the current circulating supply of OKB is 235,957,685.30. It is reported that since May 4, 2019, Oukei OKX has been repurchasing and completely destroying OKB every three months based on market and operational conditions for the total issuance of 300 million OKB, and transferring them to a black hole address.

Cardano development company: ADA should not be classified as a security by the SEC under any circumstances

According to Coindesk, IOG, the development company of Cardano, responded to the SEC's classification of ADA as a security, stating that the allegations contained "many inaccuracies" and that ADA should not be classified as a security by the SEC under any circumstances. Understanding the operation of decentralized blockchains is a basic component of responsible legislation, and these allegations will not affect IOG's operations.

Ethereum developers reach consensus on Dencun upgrade across all scopes

According to CoinDesk, Ethereum developers have reached a consensus on the Dencun upgrade, which includes five Ethereum Improvement Proposals (EIPs) aimed at increasing data storage space and reducing fees. The upgrade is expected to go live by the end of 2023. The core of the Dencun upgrade is EIP-4844, commonly referred to as proto-danksharding.

This function will expand the blockchain by freeing up more space for "blob" data, potentially reducing gas fees for Layer2. EIP-1153: Reducing the cost of storing data on the chain to improve block space. EIP-4788: Improving the design of bridges and equity pools. EIP-5656: Adding minor code changes related to the Ethereum virtual machine. EIP-6780: Removing code that could terminate smart contracts.

OKX Web3 Wallet has officially partnered with zkSync Era ecosystem project Cheems, and will support the minting and trading of Cheems Guild NFTs.

Meanwhile, Cheems officially announced the opening of its first NFT series, Cheems Guild, on zkSync Era, with a whitelist application of 369 in total. Holders will enjoy exclusive rights and community identity. According to official comments, Keungz, founder of Yogapetz, NFT KOL Degentraland, Alex, founder of Taiji Labs, Christian, NFT whale, and Harry, co-founder of Galxe, have already submitted their applications.

Optimism launches "Bedrock" upgrade commemorative NFT

According to official sources, Ethereum Layer 2 solution Optimism announced the "Bedrock" commemorative NFT public minting to celebrate the Bedrock upgrade. The event will end at 14:59 on June 17th Beijing time (about 7 days and 17 hours remaining). According to the minting page, the "Bedrock" commemorative NFT is free to mint, and each address can only mint one. Currently, 14,016 addresses have minted this NFT.

 BlockBeats previously reported that Optimism completed the mainnet Bedrock upgrade at 2:50 am Beijing time on June 7th. The Bedrock sequencer has been activated. Deposit and withdrawal services have been restored, and critical external OP mainnet infrastructure has been re-operated. Bedrock aims to upgrade transaction fees, shorten system delays, and improve node performance.

Paradigm: The US SEC's inclusion of DEX in its regulatory jurisdiction violates the Administrative Procedure Act and should be immediately withdrawn.

Paradigm commented on the US Securities and Exchange Commission's (SEC) redefinition of "trading platforms," stating that "with these arbitrary rules, the SEC inappropriately attempts to bring cryptocurrency trading platforms, including decentralized exchanges (DEX), under its jurisdiction and regulate them as securities trading platforms. The SEC's rulemaking proposal goes far beyond its statutory authority and violates the Administrative Procedure Act, and should be immediately withdrawn."

Paradigm further stated that "the 'trading platforms' that the SEC has the authority to regulate have two characteristics: 1) they act as intermediaries for securities trading; and 2) they are operated by a specific entity capable of taking collective action, neither of which are key features of DEX."

Bitget will launch Abyss World in the innovation zone on June 12th and open the AWT/USDT trading pair.

According to the official announcement, Bitget will launch Abyss World on the innovation zone on June 12th and open the AWT/USDT trading pair.

At the same time, Bitget will launch the Launchpool activity with a total prize pool of 3,750,000 AWT. The activity period is from 7:00 pm on June 8th to 7:00 pm on June 13th (UTC+8). Users can stake BGB and invite friends to participate, sharing a total of 2,625,000 AWT. Users who have already staked more than 100 BGB in Launchpool can evenly split 2,500,000 AWT. Inviting friends to complete trading tasks will earn an additional reward of 125,000 AWT.

Web3 infrastructure provider Caldera launches Taro testnet

Web3 infrastructure provider Caldera has officially announced the launch of the Taro testnet on the Ethereum Goerli network. The aim is to optimize scalability, modularity, and cost efficiency through Celestia and OP Stack to achieve data availability Rollup.

BlockBeats previously reported that Caldera, a Web3 infrastructure provider, completed two rounds of financing totaling $9 million in February 2023, led by Sequoia and Dragonfly.

NFT trading protocol SudoSwap launches V2 version, including on-chain royalties, gas optimization and other new features

According to official sources, NFT trading protocol SudoSwap has announced the launch of its V2 version. New features in this iteration include on-chain royalties, custom creator settings, ERC-1155 support, conditional orders, fee streams, and gas optimization.

Pudgy Penguins CEO: Will Launch Web3 Permissioned Marketplace Overpass

According to a report by NFT Now, Luca Netz, CEO of Pudgy Penguins, announced the launch of the Web3 licensing marketplace Overpass at the end of June or beginning of July. The marketplace will use blockchain technology to facilitate Web3 licensing transactions.

Kraken officially launches NFT market Kraken NFT

The cryptocurrency trading platform Kraken has officially launched its NFT market, Kraken NFT, and does not charge gas fees for trading NFTs on the platform. It has already supported over 250 NFT series on Ethereum, Solana, and Polygon networks.

Data: SHIB worth $31.7 million was released from pledge and transferred to Binance at 17:43 today

According to Whale Alert data, 4,000,379,151,023 SHIB (worth approximately $31.7 million) were transferred to Binance at 17:43:35 on June 9th Beijing time after being released from pledge.

Data: Zaki Manian sold all of his 115,541 LDO tokens 30 minutes ago

Maverick Protocol: wstETH daily trading volume market share reaches 58.1%, with the highest capital efficiency

According to Dune data cited by decentralized trading platform Maverick Protocol, the platform's wstETH had a daily trading volume market share of 58.1% with a value of $9.5 million. During the same period, Uniswap had a market share of 3% and Curve had a market share of 34.3%. In addition, Maverick Protocol's wstETH capital efficiency was 94.29%, while Uniswap's was 7.25% and Curve's was 0.46%.

Financing

Vitalik: Decides to donate another $100 million to COVID research project

Ethereum co-founder Vitalik Buterin posted on social media that "after discussing with Polygon co-founder Sandeep Nailwal, we have decided to donate an additional $100 million to COVID research projects. The CryptoRelief Foundation will contribute 90 million USDC, and I will contribute $10 million personally. We look forward to continuing our collaboration, as COVID research remains a top priority."

Regulation

Hong Kong Financial Secretary: The foundational technology of Web 3.0 is blockchain, and blockchain will definitely continue to develop in the future.

The Financial Secretary of Hong Kong, Paul Chan Mo-po, spoke at the 2023 Caixin Summer Summit, stating that although there are indeed some virtual asset service providers who operate irregularly, such as mixing their own funds and customer funds together and operating their own platforms while also acting as market makers, "the basic technology of Web 3.0 is blockchain, whether you like it or not, blockchain will continue to develop in the future."

Chan Mo-po stated that blockchain can establish an open, secure, and low-cost platform. Hong Kong plans to introduce appropriate regulatory systems to promote the responsible development of Internet 3.0 and virtual assets in Hong Kong.

The US House Financial Services Committee has released a regulatory draft for stablecoins, requiring the Federal Reserve to establish requirements for issuing stablecoins.

According to CoinDesk, the US House Financial Services Committee has released a new draft of the main legislation proposal for stablecoin regulation, which will be further discussed at the committee hearing on June 13. The draft will require the Federal Reserve to establish requirements for issuing stablecoins, but will still allow state regulatory agencies to supervise companies issuing these tokens. It also gives the Federal Reserve some additional powers, including the power to intervene in the event of an emergency with issuers under national supervision. States can also transfer their regulatory responsibilities to federal regulatory agencies.

美参议员：SEC 近期动作或旨在为 CBDC 的发行铺平道路 Translation:

US Senator: Recent SEC actions may pave the way for the issuance of CBDC

According to Bitcoin.com, Senator Bill Hagerty of Tennessee stated that the true motive behind the recent SEC lawsuits against Coinbase and Binance is to eliminate potential competitors to Central Bank Digital Currencies (CBDCs). The Biden administration wants to stifle market innovation and pave the way for CBDCs, which will provide convenience for the federal government and help them gain unprecedented insight into people's lives. It makes no sense to allow a company (Coinbase) to go public and then prevent them from attempting to register.

SEC Chairman says crypto companies make "deliberate" decisions to flout rules

The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, strongly refuted criticism that the SEC is trying to suppress the cryptocurrency industry, and stated that many companies in the field have made "deliberate economic decisions" to flout its rules.

Gary Gensler reiterated his view that the "vast majority" of crypto tokens meet the criteria for being securities and should be registered with the SEC.

He added that this means that most cryptocurrency trading platforms must also comply with securities laws.

The CEO of Coinbase led the push for clearer cryptocurrency regulations in Washington and on Wednesday, he hit back at the accusations under the leadership of Gary Gensler, calling him an "outsider" among Washington policymakers and saying that he was "indifferent" when the company contacted him about registration issues. (Jinshi)

FTX bankruptcy judge says US court should have full control over disputed $7.3 billion in assets

During the bankruptcy hearing of FTX held on Thursday, Judge John Dorsey, who is responsible for overseeing the FTX US bankruptcy case, stated that the US court should have full control over the disputed assets worth $7.3 billion.

The liquidators of FTX's subsidiary, FTX Digital Markets, located in the Bahamas, argued that these assets should be supervised by the Bahamian court. However, John Dorsey stated that while the Bahamian court may have concurrent jurisdiction, they do not have the authority to use these assets. (CoinDesk)

The European Union's Market in Crypto-Assets (MiCA) has been officially published in the EU Official Journal.

According to official sources, the EU's Markets in Crypto-Assets Regulation (MiCA) has been officially published in the Official Journal of the European Union (OJEU).

As previously reported by BlockBeats, the Markets in Crypto-Assets Regulation (MiCA) was approved by the EU Council on May 27. MiCA requires crypto companies such as wallet providers and trading platforms to seek operational licenses and stablecoin issuers to hold appropriate reserves.

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