Crypto Flipsider News – Bitcoin Holds Steady; October Crypto Hacks; Treasury Sued; BNB Hard Fork; Crypto.com France HQ

Read in the Digest:

Bitcoin (BTC) holds steady above $19k as the market awaits inflation data

October becomes the worst month for crypto hacks with over $718M stolen

Coin Center sues the US Treasury Department over Tornado Cash sanction

BNB Smart Chain completes hard fork to prevent future cross-chain bridge hacks

Crypto.com to invest $145 million in France for European headquarters

Bitcoin (BTC) Holds Steady Above $19k as the Market Awaits Inflation Data

Bitcoin (BTC), and crypto prices more generally, have been trading sideways this week, as all attention turns towards the September consumer price index (CPI) released by the U.S. Bureau of Labor Statistics.

Despite the stock markets tanking, the cryptocurrency market seemed more stable. The price of BTC has remained above $19k this week, with marginal gains and losses majorly under 1%.

The 3-day price chart for Bitcoin (BTC). Source: CoinMarketCap

Updates before the CPI suggest that inflation has dropped from the previous month’s high. Analysts predict that the Bureau of Labor Statistics could report a CPI of 8.1% lower than the 8.3% reported for August.

Flipsider:

Despite Bitcoin holding its ground, the Federal Reserve officials after their last meeting predicted that they expect higher interest rates to remain in place until prices come down.

Why You Should Care

A lower CPI shows that the Fed’s interest rate hikes have been effective in lowering the inflation rate, which could be positive for stocks and crypto markets.

October Becomes the Worst Month for Crypto Hacks with Over $718M Stolen

October, which was predicted to be the month of a major rally for the crypto market (hence the name Uptomber), has come with an unexpected twist. In only two weeks, October has become the worst month for crypto hacks.

With two weeks left in the month, hackers have already grossed over $718 million in crypto crimes. Data tracker Chainalysis reports that the amount was stolen from decentralized finance (DeFi) protocols across 11 attacks.

Data provided by Chainalysis shows that more than $3 billion have been lost to crypto hacks in 2022. With more than two months to go, Chainalysis predicts that 2022 could trump 2021 to become the biggest year for hacking.

This week, Mango Markets, TempleDAO, and QANplatform have all fallen to hacks, with $116 million stolen from Mango Markets. Binance’s BNB Chain was exploited for over $100 million, adding to the record-breaking October tally.

Flipsider:

The total value locked across the DeFi ecosystem has declined by 71.5% since its all-time high of $214 billion in December 2021.

Why You Should Care

Data shows that attackers have turned their attention to defi and bridge protocols, which account for more than 82% of losses this month and 64% of losses all year.

Coin Center Sues the US Treasury Department Over Tornado Cash Sanction

Coin Center has filed a federal lawsuit against the United States Treasury Department and the Office of Foreign Asset Control (OFAC) for the sanction placed on the Ethereum coin mixing service, Tornado Cash.

According to the lawsuit filed by the think tank, the Treasury overreached its authority with the sanctions. Coin Center adds that the sanction also harmed Americans and their ability to transact privately using the Ethereum network.

Coin Center is not the only entity to contest the sanctions. On Thursday, September 8th, crypto exchange Coinbase announced its lawsuit against the Treasury in a blog post titled “Defending Privacy in Crypto.”

Flipsider:

OFAC justified the ban by arguing that Tornado Cash had been used to launder money by bad actors, including the infamous North Korean hacking organization, the Lazarus Group.

Why You Should Care

The lawsuit argues that Americans have a right to privacy and a right to protect their property, as Tornado Cash can be used for these benefits in a legitimate fashion.

BNB Smart Chain Completes Hard Fork to Prevent Future Cross-Chain Bridge Hacks

Binance has announced the successful hard fork of its Binance blockchain, BNB Smart Chain, just six days after a vulnerability allowed an attacker to steal over $100 million in Binance Coin (BNB) from the chain.

According to Binance, the “Moran hard fork” went live on Wednesday, October 12th at block height 22,107,423. The Moran hard fork fixes a vulnerability in the iavl hash check and introduces a block header in sequence checks.

According to Binance, the security patch in the hard fork will “mitigate the cross-chain infrastructure between the Beacon Chain and Smart Chain.” After the hard fork, Binance has resumed the full functionality of the BNB smart chain.

In addition, all funds stuck in cross-chain transfers had arrived in the target wallet or source of users. BNB chain community members will vote in the coming days on how to address the hacked funds.

Flipsider:

Although the vulnerability has been fixed, the hack has now put the decentralization and security of the BNB chain into question.

Why You Should Care

The hard forks not only fix the loopholes that led to the hack but also invalidate codes and transactions left by the hacker on the network.

Crypto.com to Invest $145 Million in France for European Headquarters

Cryptocurrency exchange Crypto.com announced on Wednesday it will invest €150 million in France to support the establishment of its market operations, including a regional headquarters in Paris.

The announcement comes weeks after the exchange received regulatory approval from the Autorité des marchés financiers (AMF) to register in the country as a digital asset service provider.

Crypto.com revealed that the $145 million will be used for setting up a regional headquarters in Paris and hiring local talent in the fields of compliance, business development, products, and marketing.

The exchange notes its commitment to France where it seeks to set up its base. In addition, Crypto.com will allocate more resources to advance the exchange’s presence through customer engagement and educational initiatives.