Hotbit announced the suspension on Twitter with a GIF of a crying Anya from the anime series Spy × Family which, despite demonstrating their good taste in shows, does not seem like it would exactly inspire confidence among customers.
As tends to happen with insolvent exchanges, they are hoping to "compensate" their depositors with a mix of CoinFLEX-issued tokens and equity, rather than actual money or more liquid, established cryptocurrencies.
Their announcement began by saying, "We would like to inform you about an important development that does not affect our services, funds or investments with Nuri," and throughout the post they stressed that customer funds were safe.
Nuri blamed the insolvency on everything from "the ongoing after-effects of the Corona pandemic" to "the economic and political uncertainties in the markets after Russia's invasion of Ukraine" to the more recent crypto bear market.
Curve acknowledged the apparent exploit, tweeting at the iwantmyname domain platform to say they believed the issue was on their end. Around an hour after the issue was widely noticed, Curve announced the "issue has been found and reverted", and to use the alternate Curve Finance domain until DNS changes propagated for the affected domain. They also urged users to revoke any recent contract approvals they'd made on the Curve platform.
FixedFloat tweeted that they had been able to freeze 112 of the stolen ETH (~$192,000) that had been transferred to their platform. Binance later announced that they'd recovered the remaining stolen funds, with founder CZ tweeting, "The hacker kept on sending the funds to Binance in different ways, thinking we can't catch it. 😂"
The celebrities who received letters from TINA were Drake Bell, Tom Brady, DJ Khaled, Eminem, Jimmy Fallon, Paris Hilton, Eva Longoria, Madonna, Floyd Mayweather, Meek Mill, Von Miller, Neymar, Shaquille O'Neal, Gwyneth Paltrow, Logan Paul, Snoop Dogg, and Timbaland.
- "TINA.org Sends Notification Letters to Celebrities Promoting NFTs", Truth in Advertising
- "Celebrities Promoting NFTs", Truth in Advertising
"Animate your Bored Ape" scammers linked to more phishing attacks amounting to more than $2.5 million
- "Scammers In Paris", Investigations by ZachXBT
Tornado Cash is the most prominent cryptocurrency tumbler (or "mixer") and has been used in a multitude of instances to launder proceeds from cryptocurrency hacks and scams. In a press release, the Treasury Department named the North Korea-sponsored Lazarus Group's $625 million hack of Axie Infinity in March, the $100 million theft from Horizon Bridge in June, and the $190 million hack of the Nomad bridge in August as contributing to the decision.
Although Tornado Cash had claimed to be complying with sanctions in the wake of the Axie hack, the Treasury Department wrote in their press release that, "Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks".
Tornado Cash is also widely used to maintain privacy in a world where transactions are publicly visible, and it remains to be seen how the cryptocurrency ecosystem will react to this major development. Tornado Cash is also relatively decentralized in its operations, meaning it may be difficult for the sanctions list to be kept up to date and for the sanctions to be enforced.
The fallout from the sanction was swift: in the days following the action, Tornado's source code repository was removed from Github and the accounts of some of its developers were suspended; the project's Gitcoin funding page was taken down; and the project's own website, governance pages, and Discord server went offline.
- Specially Designated Nationals List Update, U.S. Department of the Treasury
- "U.S. Treasury Sanctions Notorious Virtual Currency Mixer Tornado Cash", U.S. Department of the Treasury
Bitcoin mining operation Riot Blockchain earns more money in July by not mining, effectively mines without paying for power
A press release from Riot proudly announced that "Riot curtailed a total of 11,717 megawatt hours in July, enough to power 13,121 average homes for one month", as though it is acceptable that they are normally using this amount of electricity solely to churn out Bitcoins.
They also wrote that "When applied to anticipated power costs for the month, the power credits and other benefits are expected to effectively eliminate Riot’s power costs for July"—meaning that Texas residents are effectively subsidizing the cost of Bitcoin mining whether they like it or not. Meanwhile, the Texas Tribune and The Dallas Morning News report that many Texans are paying 50–70% more for electricity than this time last year.
In an FAQ attached to the announcement, Hodlnaut told users that "it will not be a short process" to re-enable withdrawals and token swaps.