The Daily: WazirX exploit, Biden's dropout odds, BlockFi to begin crypto distributions and more
Quick Take Indian crypto exchange WazirX exploited for over $230 million Polygon plans to migrate MATIC to POL token on Sept. 4 Multiple Mt. Gox creditors claim brute-force login attempts on accounts The following is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
WazirX exploited for over $230 million
- The hack targeted WazirX's multisig wallet on the Ethereum network, potentially due to a private key compromise, and drained the funds.
- To carry out the attack, the perpetrator needed to upgrade the implementation of a Safe Wallet to a malicious contract, security firm Blocksec explained.
- The exchange acknowledged the incident, adding that it's still investigating the outflows and has paused all withdrawals.
- The stolen funds include over $100 million in SHIB, $52 million in ETH, $11 million in MATIC, $7.5 million in PEPE and $5.7 million in USDT, on-chain data shows.
- Blockchain analytics firm Elliptic said on-chain data suggests that hackers affiliated with North Korea likely conducted the exploit.
- The compromised funds were moved to an address that actively began selling the stolen assets into ether, laundering them using decentralized services and Tornado Cash — consistent with behavior demonstrated by North Korean hackers in previous incidents.
- The price of WazirX's token fell 16% following the incident.
Polygon plans to migrate MATIC to POL token on Sept. 4
- A testnet migration was launched on July 17 to identify and address potential issues before the mainnet transition.
- After the upgrade, POL will replace MATIC as the primary token for gas fees and staking on the Polygon network and maintain MATIC's existing tokenomics, distribution and total supply.
- Current MATIC holders on the Polygon PoS network will have their tokens automatically converted to POL without requiring user intervention.
- However, those with MATIC on Ethereum, Polygon zkEVM or various centralized exchanges must follow specific migration procedures.
Mt. Gox creditors claim brute-force login attempts on accounts
- Users claimed two-factor authentication likely prevented unauthorized access, though others speculated the incidents could simply be system glitches.
- Meanwhile, the Mt. Gox claims website is down for maintenance, with the temporary closure appearing to take place following reports of the login attempts, according to comments on a subreddit.
- Mt. Gox is currently in the process of distributing around $9 billion in bitcoin to its creditors, recently moving funds to crypto exchanges Bitbank, Kraken and SBI VC Trade to manage the payouts.
BlockFi to begin processing crypto distributions via Coinbase
- Distributions will occur in batches over the coming months, and notifications will be sent to eligible clients' registered email addresses, the firm said.
- The commencement of distributions follows an announcement in May that eligible BlockFi clients could still access crypto withdrawals via Coinbase after BlockFi shut down its web platform.
- BlockFi's bankruptcy plan administrator will continue using Coinbase for future distributions, including potential recoveries from the FTX and Alameda Research estates from which it reached an $875 million in-principle settlement.
Polymarket bettors push odds of President Biden dropping out of the race to 80%
- Decentralized prediction platform Polymarket currently forecasts an 80% chance of Biden dropping out of the race, leading to rallies in potential successor-based misspelled memecoins such as Gabin Noosum and Kamala Horris.
- In contrast, memecoins inspired by Donald Trump, like MAGA and the misspelled Doland Tremp, have dropped in value over the past day.
In the next 24 hours
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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