The R Roundup: Tornado Cash Up In The Wind — Issue #49
With the sentiment starting to suggest the potential of recovery in terms of price, the markets still seem to have regulators looking to clamp down on any ounce of illicit operations.
DeFi mixing service Tornado Cash was on the receiving end of sanctions from the US Treasury as they accused Tornado Cash of laundering over $455m USD for a hacking group situated in North Korea, Lazarus Group.
Tornado Cash allows users to obscure the details of a transaction that is on-chain and the Treasury claim that Tornado Cash had “failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors”.
Following this the issuer of $USDC, Circle froze $USDC in Tornado Cash’s sanctioned wallets which could be a direct explanation for the mass withdrawals from Tornado Cash users seeing the TVL drop by 15%.
Further worry began to set in as the Netherlands went on to arrest a suspected developer involved in the Tornado Cash protocol.
The Tornado Cash DAO went on to vote to take partial control over the treasury’s multisig whilst the investigations and sanctions are ongoing however with the Discord and Governance pages no longer accessible it will be much more difficult for the DAO to organise itself.
You can keep up with the developments of this story through our #RRUPDATES📍
The Merge Finally Confirmed?🗓
A large contributing factor to the recent relief rally has been the speculation about the major network upgrade Ethereum is set to undergo known as “The Merge”.
The Merge is set to see $ETH move from a PoW consensus mechanism to a PoS which would see many differences in how validators interact with the network and it’s set to reduce Ethereum’s energy consumption by 99,95%.
This week it broke that through Vitalik tweeting that they expect The Merge to happen on September 15th, 2022.
Many are expecting The Merge to be a catalyst for a major market recovery which is reflected through $ETH breaking through the psychological resistance of $2000 and currently trading between the $1975-$2000+ range.
Binance Recovers $CRV Funds🦸♂️💰
The number of capital withdrawals from the market through hacks and scams has been soaring since the TerraUST collapse however Binance had been working on recovering funds from the $CRV front-end hack.
Binance CEO CZ tweeted that $450k had been recovered from the $573k stolen from the Curve Finance protocol seeing the platform vulnerable before resolved in a few hours.
The hackers reportedly tried to use Binance with a range of different accounts in the attempt to launder the stolen funds but the funds were subsequently frozen.
CZ added that they are also working with Law and Enforcement to return the funds to users.
On-Chain Update⛓: $BTC Spot $USDT Trades Up 31%🔺
Infamously $BTC has been previously accused of being riddled by leverage and perpetuals resulting in a reduction of spot traders for Bitcoin.
With retail sentiment looking to return to neutrality, more spot buyers have come in for $BTC.
In July spot Bitcoin trades into $USDT surged 31.4%
While the macroeconomic environment has yet to conclude a specific direction, $BTC has reacted to a slight improvement in inflation sitting at $24,500.
As a reminder, this is not a trading signal or investment advice; it is an opinion, and each trader/investor should know and understand the risks of trading cryptocurrencies. At no point should this be regarded as financial advice, feel free to familiarise yourself with our NFA disclaimer.
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