CFX surges as Conflux teases yuan-pegged stablecoin & 3.0 launch

Poly Network Exploit Results in Billions of Nonexistent TokensPoly Network, the China-based interoperability platform, was targeted by hackers over the weekend in a major attack that resulted in the creation of billions of tokens out of thin air. It’s the second time in as many years that the cross-chain bridge has been exploited by hackers.The attacker exploited a vulnerability in Poly Network’s cross-chain bridge tool, allowing them to generate a substantial number of tokens that previously did not exist, as reported by Arhat, the Founder of 3z3 Labs, on Twitter.Photo by Shubham Dhage on UnsplashNetwork suspensionThe Shanghai-based project team behind Poly Network promptly informed its users on Sunday that its services were temporarily suspended due to the attack. The platform assured its users that it was diligently assessing the extent of the breach and the impact on assets. They emphasized their commitment to safeguarding users’ assets and urged everyone to remain calm.The hacker, at one point, held nearly $43 billion worth of cryptocurrency in their digital wallet, according to DeBank, a decentralized finance portfolio tracker. This staggering figure was corroborated by PeckShield, a blockchain data and security firm.Bridge vulnerabilitiesBridges play a crucial role in the Web3 ecosystem, enabling users to transfer assets across different networks. However, they have often been attractive targets for hackers. In this attack on Poly Network, the hackers issued themselves nearly 100 million BNB and $10 billion worth of BUSD, the Binance-branded stablecoin, on the layer-2 network Metis, revealed Colin Wu, a Chinese crypto journalist.Similarly, on the Heco network, approximately 100 trillion units of the dog-themed meme coin, Shiba Inu, were created. Additionally, a significant number of altcoins were generated on Polygon and Avalanche networks.Illiquid Metis tokensMetis clarified that the BNB and BUSD tokens issued on its network by the hackers are effectively worthless since there is no available sell liquidity. Poly Network also locked these tokens, ensuring they cannot be utilized. Arhat of 3z3 Labs acknowledged that the impact of the Poly Network attack was somewhat mitigated by the lack of liquidity, which prevented the hackers from realizing substantial gains on Metis.However, on other networks like Ethereum, the stolen tokens were exchanged on decentralized exchanges. Arhat estimated that the attacker managed to convert only a small portion of the tokens, amounting to approximately $400,000 worth of crypto, while the remaining tokens lacked liquidity and were essentially worthless.SlowMist, a blockchain security firm, suggested that the hacker’s total gains were higher. They reported that over $4 million worth of digital assets from the attack had been cashed in, including 1,500 Ethereum worth $3 million and 93 billion SHIB worth $700,000.Poly Network had previously made headlines in 2021 when it experienced a historic attack, considered the largest exploit in decentralized finance at the time. The project suffered a loss of $600 million as funds were siphoned away from Ethereum, Binance Smart Chain, and Polygon. However, the hacker eventually returned $342 million worth of stolen crypto, and Poly Network took steps to repay affected users.

South Korean Banks Adopt Blockchain for Streamlined Civil Servant LoansSouth Korea’s state-run financial organizations and banks are embracing blockchain technology to streamline the loan process for government employees and enhance loan management for banks.Photo by Shubham Dhage on UnsplashBlockchain-aided loan servicesIn a collaboration announced today at the Korea Federation of Banks (KFB) in Seoul, the Korea Financial Telecommunications and Clearings Institute (KFTC), the Government Employees Pension Service (GEPS), and four local banks are coming together to introduce blockchain technology in providing loan services specifically tailored for civil servants. The four participating banks are NongHyup Bank, Hana Bank, DGB Daegu Bank, and Gwangju Bank.Easier applicationAt present, civil servants are required to acquire a physical loan recommendation letter from the GEPS in order to apply for a bank loan. However, with the implementation of the new loan system, the GEPS will have the capability to issue blockchain-based letters, which can be obtained by civil servants either in-person or remotely at banks. This innovative approach will significantly simplify the verification process for these letters.Easier managementFurthermore, the manual exchange of loan-related information, such as repayment history and retirement details, between banks and the GEPS will be replaced by a more efficient system. The KFTC will take on the role of mediator, ensuring that any changes to this information are immediately reflected in real time. This streamlined approach will significantly enhance loan management for lenders.The launch of this service is scheduled for November this year, bringing about improved accessibility to loans for government employees. As the project progresses, other financial institutions are expected to join in, further enhancing the convenience of public servants. Additionally, these collaborating organizations will explore joint services aimed at providing the necessary support to stabilize the livelihoods of civil servants.

FTX Japan Moves Towards FTX 2.0 via Hiring DriveFTX Japan, a subsidiary company of the collapsed FTX crypto exchange business, is embarking on a hiring spree to bolster its team and drive the FTX 2.0 initiative forward.News of the new recruitment initiative broke via a tweet from Seth Melamed, FTX Japan’s Chief Operations Officer. Melamed wrote: “FTX Japan is hiring! Our team is exploring the leading edge of technology including AI to develop new crypto tools, non-custodial CEX trading, Proof of Solvency, and leading crypto derivatives products.”On the firm’s careers page on its website, FTX Japan details that it is looking to hire a Flutter Engineer to work on mobile applications, customer service staff and a marketer. Additionally, the company is looking to offer an internship.Photo by Tianshu Liu on UnsplashAdvancing FTX 2.0This latest recruitment initiative comes on the back of news that broke last week that the FTX Debtor led by bankruptcy specialist John J. Ray III, had decided not to follow through with the sale of FTX Japan. Most FTX creditors have been calling for the relaunch of the exchange business, dubbed FTX 2.0. Monthly expense filings have shown that various advisors to the Unsecured Creditors Committee (UCC) and professionals working for FTX itself have been spending quite a lot of time working on that possibility.Such a relaunch has as yet not been officially confirmed. However, it is looking increasingly likely that there’s a strong commitment to advancing the FTX 2.0 initiative, and with that, FTX Japan is actively seeking new talent.A restructuring plan is expected to be filed before the end of the month. This will likely move the notion of FTX 2.0 from a matter of speculation to something more tangible. That said, even if it forms part of that plan filing, due to the cumbersome workings of the US bankruptcy process, it’s unlikely that the overall international business will be relaunched until 2024. FTX Japan is solvent and so, it could be back in operation well before then.FTT token speculationEarlier this week, a beta version of a claims filing system was put online, although not officially launched. News of this development led to speculative interest in FTX’s exchange token, FTT.On Tuesday, the token increased in value by 26% within a matter of hours. Pricing has since cooled, and at the time of publication, the token had a unit price of $1.52. Crypto certainly garners speculative interest as this price action demonstrates. It remains to be seen until further clarification is provided by the FTX Debtor and the bankruptcy court in Delaware in the United States as to whether FTT will even feature in the future plans of a restructured business.FTX was very much the standout black swan event within crypto in 2022. However, it’s clear that its story remains unfinished. In the months ahead, we’re likely to hear more about the future plans for the business, in what could become quite the redemption story.