Etherscan expands through Solscan acquisition

Survey Reveals Favorable Public Opinion on Binance’s Acquisition of Korean Exchange GopaxCratos, a South Korean blockchain-based polling app, conducted a survey from June 12 to June 14 to gauge public opinion on whether the Financial Services Commission (FSC) should approve the request of Korean cryptocurrency exchange Gopax’s operator Streami to change its representatives, as reported by local news outlet The Stock. This change is necessary for global crypto exchange Binance to acquire Gopax.The survey, which involved 2,093 participants, revealed that 64.6% of respondents favored approving the acquisition, while 35.4% opposed it. More than half of the participants believed that approving the acquisition would safeguard investors’ assets deposited in Gopax.Photo by Heesang Park on PexelsSurvey resultsWhen analyzed by age group, the survey found that respondents in their teens and 20s were more likely to disagree with the acquisition, with 69.4% and 52.3%, respectively. However, those in their 30s were more inclined to support it. Notably, over 70% of respondents in their 50s agreed with the acquisition.Among those who favored Binance’s acquisition, 55.5% chose investor protection as their reason. 33.5% believed there were no legal grounds to refuse the acquisition (33.5%), and 11.0% expressed concerns about the potential shrinkage of the crypto market (11.0%).On the other hand, the most common reason given by respondents for opposing the acquisition was the risk of Binance’s opaque business and financial structure (45.8%). This was followed by the ineligibility of executives, representatives, and other major shareholders (37.4%) and the risk of disrupting the crypto market (16.8%).Consensus on investor protectionCratos CEO Kang Dong-won explained that the crypto winter, characterized by declining crypto asset values, has been prolonged due to a series of negative news at home and abroad, including the US Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase, poor performance of crypto exchanges, and controversy over a Korean lawmaker’s alleged holding and investment of crypto assets. Kang believes that the survey findings reflect falling crypto yields, leading to a growing consensus on the need for investor principal protection and victim relief.On March 7, Streami submitted a report to notify the Financial Intelligence Unit (FIU) under the FSC about the change of its representatives. However, the Korean financial watchdog has been pending its decision amid Binance’s legal issues.The concern is that if Binance fails to acquire Gopax, investors could suffer losses since their assets worth KRW 56.6 billion are held in GoFi, the exchange’s crypto deposit service. On June 8, GoFi users sent a public inquiry to the FIU regarding the reasons for the delay in approving the exchange operator’s request. In the meantime, Streami is exploring ways to address this challenge by announcing its board meeting scheduled for next week. The meeting will discuss changing its CEO from Leon Sing Foong, Asia Pacific Head at Binance, to Lee Joong-hoon, Gopax’s current Vice President, as it is believed that appointing a Korean national as the CEO would facilitate smoother communication with the government.

Coti plans transition to Ethereum layer-2 network in 2024Israeli blockchain developer Coti plans to introduce a scalable, privacy-focused Ethereum layer-2 protocol in 2024. This strategic move aims to extend Coti’s privacy-centric features to a wider audience within the Ethereum ecosystem.Photo by Zoltan Tasi on UnsplashIncorporating ‘garbled circuits’Taking to the X social media platform on Wednesday, Coti unveiled its plan to transition from a standalone protocol to an Ethereum layer-2. The centerpiece of the project, which Coti has termed “Coti v2: a privacy-centric Ethereum L2,” is a cryptographic method known as “garbled circuits.”Garbled circuits are a cryptographic primitive that enables two or more parties to evaluate an arbitrary Boolean circuit securely, without revealing any information beyond the output, all while using a constant number of communication rounds. This innovative approach enables the processing of transactions without exposing sensitive information and data, aligning with the platform’s commitment to privacy.Having originated in the 1980s, garbling protocols have evolved into a crucial element of privacy-preserving technologies, excelling in scenarios where confidential data needs to be part of a computation without revealing the information itself.Focusing on privacyCoti CEO Shahaf Bar-Geffen emphasized the significance of this privacy-oriented protocol, stating:“Sensitive data transmitted as public information on a blockchain is a bug, not a feature.”Bar-Geffen highlighted the protocol’s ability to prevent sensitive data from being exposed to competitors, partners and clients engaged in transactions on Coti’s chain. The CEO elaborated on how garbling protocols differentiate Coti v2 by facilitating transactions and smart contract executions where details remain private between involved parties.The Coti CEO emphasized the critical role of such privacy features in decentralized finance applications, where transaction confidentiality is as essential as transaction integrity. Coti claims that other platforms focusing solely on anonymity for privacy may face regulatory challenges and might not provide a compliant foundation for the broader ecosystem.Targeting specific use casesCoti envisions its protocol catering specifically to use cases demanding advanced privacy provisions in finance and healthcare. Currently designed for enterprises, Coti’s existing protocol enables the management of blockchain-based products such as custom-branded tokens, wallets, website integrations and fiat on-and-off ramps.In a blog post on Medium, the blockchain startup outlined that in addition to privacy, v2 will enable smart contracts, EVM compatibility and Solidity programming, alongside the features currently offered by v1. Notwithstanding these new features on the v2 product, the company confirmed to The Block that in respect of Coti’s original Cardano-based product, “Coti’s work with Cardano continues. We have a project built there called Djed, and that will continue to remain on Cardano.” Djed is an ADA-backed stablecoin pegged to the U.S. dollar.The anticipated release of Coti v2’s developer net in the second quarter of 2024 signals a move towards realizing the potential in advancing Ethereum’s privacy standards. As a layer-1 protocol, Coti presently contributes to Web3 applications by providing digital infrastructure, including tools for wallets, tokens and payment modules, with a total value locked of $31 million.The upcoming integration as a privacy-centric layer-2 positions Coti as a key player in enhancing Ethereum’s capabilities and fostering a more secure and confidential blockchain experience.

FTX, the failed cryptocurrency exchange founded by Sam Bankman-Fried, has taken legal action by filing a lawsuit against four former employees of Salameda, a Hong Kong-based affiliate closely linked to the exchange’s former CEO.According to a Delaware bankruptcy court filing in the United States on Thursday, the lawsuit alleges that five individuals exploited their personal connections to prioritize their asset withdrawals from FTX during a period of uncertainty regarding the exchange’s stability. The defendants in question are Salameda’s former employees — Michael Burgess, Matthew Burgess, Kevin Nguyen, and Darren Wong — as well as Michael and Matthew’s mother, Lesley Burgess, and two companies: 3Twelve Ventures and BDK Consulting.Photo by Bermix Studio on Unsplash Preference period clawbackThe critical withdrawals occurred within the 90-day period leading up to FTX’s bankruptcy filing on November 11, commonly referred to as the “Preference Period.” Under US law, customers who withdrew their crypto assets during this timeframe could potentially face lawsuits from the exchange’s creditors seeking to recover these funds, a process known as a “clawback” under bankruptcy regulations.The total value of these suspicious transfers is estimated at $157.3 million, with more than $123 million of that sum withdrawn after November 7, 2022. Michael Burgess is alleged to have received around $73 million of these illicit withdrawals.The lawsuit claims that the individuals leveraged their connections within FTX Group to ensure preferential treatment over other customers. In a specific accusation, Matthew Burgess is said to have engaged other FTX Group employees to expedite certain withdrawal requests from his FTX US exchange accounts while falsely representing the accounts as his own. 11th hour withdrawalsIn this way, Burgess and the other four defendants managed to get funds out when most other FTX customers couldn’t. The final withdrawals were executed only hours before FTX.com suspended all withdrawals on November 8, 2022, according to the lawsuit. As one commentator on X put it, “FTX employees were manually reviewing large withdrawals & pushing some ahead.”The legal filing also delves into the significant profits the defendants reportedly accrued from trading cryptocurrencies in the months leading up to FTX’s collapse. Even after their apparent departure from the FTX Group, Michael Burgess, Nguyen, and Wong actively traded through entities such as 3Twelve and BDK, with monthly trading volumes ranging from $100 million to $400 million.A noteworthy aspect of this activity is that their trading capital was allegedly derived from the FTX Group. The court filing goes on to claim that “Burgess, Nguyen and Wong received substantial transfers of digital assets and fiat currency from exchange accounts associated with FTX Group entities, including approximately 13.1 million FTT sent to Darren Wong, more than 1 million SOL sent to Michael Burgess, and nearly $4 million USD for ‘bonuses’ between Michael Burgess, Nguyen and Wong.” Retail clawback riskThis legal battle and the allegations against the former Salameda employees are being watched closely by other FTX bankruptcy stakeholders. The FTX Debtor has suggested that it will pursue clawbacks vigorously. That has concerned former retail customers who managed to withdraw assets in the final days before the platform collapsed. Equally, it is a worry for current FTX creditors who may have withdrawn some but not all of their assets before the exchange was shuttered.