This Week in Crypto
July 28, 2023
Welcome to This Week in Crypto, where we look at some of the major headlines that resonated throughout the industry. Today, we are discussing the following topics:
Key Takeaways
- EraLend suffers exploit, loses $3.4 million
- Binance reconsiders operations in Germany
- US government pauses regulations on stablecoins
- MXC Swap hits $100,000 milestone
EraLend Suffers $3.4 Million Exploit
EraLend, the most prominent lending protocol on the zero-knowledge rollup of Ethereum zkSync, has confirmed that it has suffered a security issue resulting in the loss of funds. According to EraLend, the protocol was attacked by a malicious actor that saw a vulnerability in EraLend’s smart contract and carried out a read-only reentrancy attack. This attack method allows the attacker to flood a smart contract with repeated calls, creating an opportunity for the attacker to manipulate asset prices. Currently, the total loss is sitting at around $3.4 million.
While the attack has been contained, we advise all of our community to refrain from interacting with smart contracts from EraLend, and to halt usage until major security updates have been completed by EraLend with additional audits.
Binance Reconsiders Operations in Germany
Binance announced that it is withdrawing its application to obtain full licenses from BaFin in Germany, due to Germany’s strict regulations around cryptocurrency assets and licensing guidelines. Binance stated that the regulations pose fundamental questions to the company’s previously-made commitment to expanding operations in Germany and that a new, modified application will be submitted upon review.
What does this mean for Binance users in Germany? Currently, it is unclear. When Binance recently pulled out of the Netherlands, all Dutch residents of Binance received an email stating that further deposits and trading would be halted. At the moment, no German residents have received such an email. Further monitoring would be required.
US Government Pauses Regulations on Stablecoins
The proposed regulations drafted by the Republicans in the US House of Representatives have failed to gather enough support. Even though the regulation was drafted with a few Democrat representatives as well, the proposal ultimately did not pass. While in-depth discussions were few, most are speculating that the result mostly sparks from political differences rather than ideological differences in regard to stablecoins.
It is unlikely that this proposal will be fully dropped. As a new bill is most likely being drafted in order to bring regulations to stablecoins, we advise our community especially in the United States to pay particular attention to the development of this news.
MXC Swap Hits $100,000 Milestone
Yesterday was the first day since the launch of MXC Swap that the 24-hour volume has exceeded the key milestone of $100,000 USD. With over $120,000 USD in liquidity aggregated from key supporters, the trading volume saw a sharp increase in this particular week.
As we continue to build the MXC zkEVM and roll out new, exciting features, we highly encourage our community to join the revolution and try out all the new dApps. In order to use the dApps, you will need to first bridge your MXC from Ethereum to MXC zkEVM. Start here by clicking on this link.
