Web3🌗Wednesday Highlights: OKX Compensation, Snowden Backs Tornado Cash Founder, Socket Recovers Stolen ETH, and $1M in TRUMP Meme Coin Wallet

Embark on a journey through the latest Web3 developments this Wednesday! From OKX's compensations to Edward Snowden's support for Tornado Cash, and Socket protocol's recovery of stolen ETH, to the intriguing TRUMP Meme Coin wallet, there's much to explore. Join us as we unravel the dynamic landscape of Web3 innovations and controversies.

1. OKX compensates users after OKB flash crash

OKX to fully compensate users for OKB flash crash losses, triggered by market downturn. Compensation plan to cover abnormal liquidation losses, focusing on pledged lending, margin trading, and cross-currency transactions. CEO pledges improvements in leverage limits, risk control, and liquidation mechanisms within 72 hours to prevent similar incidents. While compensation aids recovery, the incident highlights risks in crypto leverage trading, emphasizing the need for systemic improvements to maintain trust and user confidence.

OKX to Compensate Users After Flash Crash in OKB Token

Cryptocurrency exchange OKX has announced that it will fully compensate users affected by a flash crash that occurred on January 23rd.

Milk RoadVignesh Karunanidhi

2. Snowden supports Tornado Cash founder

Edward Snowden, the whistleblower living in exile, has endorsed the legal defense fund for Roman Storm, co-founder of the cryptocurrency mixing service Tornado Cash. Last year, the U.S. Department of Justice charged Storm with money laundering related to Tornado Cash, a popular cryptocurrency coin mixing application. The U.S. Treasury’s Office of Foreign Assets Control had banned Americans from using the service in 2022, alleging it was used for money laundering. Storm's recent arrest has prompted a fundraising campaign to support his legal defense. Snowden, a privacy and cryptocurrency advocate, called the arrest an attack on open-source development and urged support.

Edward Snowden Urges Support for Jailed Founder of Ethereum Mixer Tornado Cash - Decrypt

Whistleblower turned fugitive Edward Snowden has backed the Tornado Cash co-founder’s new fundraising campaign for a defense team.

DecryptMat Di Salvo

3. Socket protocol recovers 2/3 stolen ETH

Socket, a cross-chain bridge protocol, recovers $2.3 million of $3.3 million hacked funds. The protocol aims to release a recovery plan for users affected by the recent exploit, thanking analytics accounts for their assistance. The attacker exploited a token approval vulnerability, impacting 219 users with limitless approvals, draining assets until each user’s authorized limit was reached. Socket identified and removed the bug within hours and restored functionality within 24 hours. A phishing scam post-exploit urged users to revoke approvals through malicious apps. Cross-chain bridges, crucial for decentralized protocols, are increasingly targeted, posing challenges for the decentralized finance sector.

Socket protocol recovers two-thirds of stolen ETH from hack

Phishing scammers also used a fake Socket account to post a link to a malicious app and urged users to revoke their approvals using another malicious app.

CointelegraphPrashant Jha

4. Trump-labeled wallet holds $1M in TRUMP Meme Coin

The TRUMP meme tokens, initially sent to a Donald Trump-labeled wallet, witnessed a remarkable surge in value, reaching over $1 million. Although the tokens were unrelated to the former U.S. President, their worth soared after Trump's recent victories in the primaries, positioning him as a contender in the 2024 elections. The wallet's value reached $2.5 million, holding $750,000 in both ether (ETH) and wrapped ether (WETH), along with various tokens. Despite its peak value exceeding $4 million, a $2.5 million tranche in ether was moved to Coinbase in December, generated from royalties in the official Trump NFT collection.

Donald Trump-Labeled Wallet Has Over $1M of TRUMP Meme Coin

Issuance of the TRUMP tokens has nothing to do with Trump directly, but some are using the tokens as a speculative bet on his ongoing presidential campaign.

CoinDeskShaurya Malwa

As we conclude this Web3 exploration, the world of decentralized technologies continues to evolve. Stay connected for more updates, breakthroughs, and discussions on the ever-changing horizon of blockchain and crypto. Remember, the Web3 journey is an exciting one, filled with challenges and triumphs. Until our next exploration, keep navigating the decentralized realms!

WEB3 AI ML