Web3🌗Wednesday Highlights: Sonne Finance Hack, Solana Dev Theft, El Salvador's Bitcoin Mining, HTX HK License Withdrawal
1. Sonne Finance Token Plummets 60% Following $20M Optimism Exploit
2. Solana Developer Admits to Misappropriating Cypher User Funds
3. El Salvador Mines 474 Bitcoin with Geothermal Volcanic Energy
4. HTX's Hong Kong Affiliate Withdraws License Application Again.
Discover more details below!
Welcome to today's roundup of Web3 highlights! It's Wednesday, and the world of decentralized finance and cryptocurrencies is abuzz with significant events. From exploits and confessions to innovative energy mining, we've got it all covered. Let's delve into the latest developments shaping the Web3 landscape.
1. Sonne Finance Token Plummets 60% Following $20M Optimism Exploit
Sonne Finance suffered a $20 million hack on the Optimism blockchain, causing its SONNE token to plummet by 60%. Attackers exploited a "donation" attack, manipulating markets and stealing ether, VELO, and stablecoins. The developers managed to stop $6.5 million from being siphoned off and paused operations to mitigate further damage. The Base blockchain version remains unaffected. Efforts are underway to retrieve the stolen funds, and a bounty has been offered for the hacker. This incident underscores the need for robust security measures in decentralized finance platforms.
Shaurya Malwa
2. Solana Developer Admits to Misappropriating Cypher User Funds
Cypher Protocol contributor Hoak confessed on Twitter to stealing $500K in community funds due to a gambling addiction. The stolen funds included USDT, USDC, and SOL, among others. Hoak's admission followed an investigation by the Cypher Protocol team, which revealed he transferred the stolen assets to Binance. The theft was detected when users reported withdrawal issues on Discord. Cypher Protocol has reached out to law enforcement, and Hoak faces potential legal consequences. Despite his apology, the incident underscores the risks and vulnerabilities in the decentralized finance space.
Jason Nelson
3. El Salvador Mines 474 Bitcoin with Geothermal Volcanic Energy
El Salvador has emerged as a leader in renewable Bitcoin mining, leveraging its volcanic geothermal energy to mine 474 BTC, valued at $29 million, since 2021. Utilizing power from the Tecapa volcano, the country employs 300 mining processors, allocating 1.5 megawatts (MW) out of 102 MW produced by a state-owned plant. In a bid to address concerns over Bitcoin's environmental impact, El Salvador's innovative approach underscores a shift towards sustainable mining practices. Despite criticism from global organizations, President Nayib Bukele remains steadfast in his Bitcoin advocacy, doubling down on the country's commitment to the cryptocurrency. While Bitcoin's reliance on fossil fuels continues to provoke debate, El Salvador's renewable energy initiatives signal a transformative shift in the crypto landscape, setting a precedent for environmentally conscious mining practices worldwide.
Prashant Jha
4. HTX's Hong Kong Affiliate Withdraws License Application Again.
Huobi HK's withdrawal of its license application for the second time raises concerns about its legal standing in Hong Kong. The Securities and Futures Commission removed it from the list of virtual asset trading platform applicants. Failure to submit by Feb. 29 mandates closure by May 31 or within three months of further notice. Unlike China's crackdown, Hong Kong embraced crypto, initiating a licensing regime in June 2023. HashKey and OSL secured licenses. SFC is reviewing applications from 20 firms, including OKX and Bybit. HKVAEX, reportedly linked to Binance, ceased operations after withdrawing its application, reflecting regulatory challenges in Hong Kong's crypto sector.
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As we draw the curtains on today's Web3 Highlights, it's evident that the landscape of decentralized finance is both exhilarating and challenging. From the vulnerabilities exposed by security breaches to the innovative use of renewable energy sources for mining, each headline underscores the dynamic nature of this rapidly evolving ecosystem. As we reflect on the day's revelations, let's remain vigilant, yet optimistic about the future of Web3. Remember, every setback presents an opportunity for growth, and every achievement propels us further along the path of innovation. Stay tuned for further updates, and continue to engage with the latest developments shaping the world of decentralized finance. Until next time, may your journey through the digital frontier be filled with exploration and enlightenment!
