Crypto researcher Small Cap Scientist suggested on June 9 that the sell-offs may have been triggered by a "canary in the coal mine": a 50,000 stETH (nominally worth $45.8 million) sell-off by Alameda Research, a trading firm founded by Sam Bankman-Fried. SCS also reported that Celsius Network was "quickly running out of liquid funds to pay back their investors", and "they are taking massive loans" against "billions in illiquid positions" to pay back customers.
There has been a lot of concern lately about Celsius' reserves and its ability to honor redemptions, with some speculating that the platform might be underwater and forced to default. Celsius released a blog post on June 7 titled, "Damn the Torpedoes, Full Speed Ahead" where they accused "vocal actors" of "spreading misinformation and confusion", and promised that "Celsius continues to process withdrawals without delay", and that "Celsius has the reserves (and more than enough ETH) to meet obligations".
Celsius' June 12 announcement did not include any details on what their plans would be, just that they hoped it would allow them to "stabilize liquidity and operations while we take steps to preserve and protect assets".
On June 14, the Wall Street Journal reported that Celsius had hired restructuring attorneys.
Anyway, a project called Offline Cash has sprung up. In a stunning example of Poe's Law, the project seeks to provide a physical form of that digital physical cash people have spent so much time working on.
Hear me out: imagine you had paper notes that you could transfer to people in lieu of making a Bitcoin transaction! And unlike regular cash, it has an expiration date to keep track of!
Scammers compromise verified, 5-million-follower Twitter account for Venezuelan newspaper El Universal, use it to promote fake Goblintown site
One of the wallets used by the scammers had stolen 64 NFTs, though most of them were low in value. The address had also pulled in 16.5 ETH (~$30,000). However, most scammers rotate wallets, and this likely doesn't reflect the total damage from the scam.
20 million Optimism tokens sent to nonexistent address, someone else snags them before they can be recovered
Wintermute published a blog post taking responsibility for the error, and announced that they would "proceed to buy OP every time the attacker sells it to make the protocol whole eventually". So far the attacker has sold 1 million $OP for about $1 million USD.
Wintermute wrote that they were "open to see this as a white hat exploit", but if the funds were not returned within a week, they were "100% committed to returning all the funds, tracking the person(s) responsible for the exploit, fully doxxing them and delivering them to the corresponding juridical system".
Remarkably, the attacker returned 17 million of the tokens two days later, keeping 2 million as a "bounty". Wintermute agreed to reimburse the Optimism Foundation for the remaining 2 million $OP.
Although the project team promised that "every single one of our holders will win something", the collectors were in for a lot of disappointment: players never showed up for events, and Zoom meetups were never scheduled despite repeated requests, and merchandise was never sent. One person who was promised a signed jersey instead received a t-shirt, apparently devoid of any signature.
In mid-May, two project creators announced they would be "stepping back on the project as [they] cannot seem to please the community". The announcement broadly blamed the project's failures on "lack of interest" in the project. They said they would no longer be providing physical items, and would focus on "athlete utility", though in the time since then the project has remained similarly stagnant.
Collectors minted Players Only NFTs in early December for 0.08 ETH each (~$144). One NFT from the project has been sold on the secondary market in the last month, for $0.001 ETH (less than $2).
The exchange has announced plans to repurchase $APX to boost the price, so far spending $600,000 to do so.
Developers halted the chain before liquidity pools were fully drained, but estimated that about $5 million was lost. They wrote that they were working on recovery plan; perhaps they will also encourage their community to report bugs privately, rather than via public Reddit post.
GYM Network promised to use the entire project treasury to bolster the price of their token, which tanked as a result of the massive sell-off. "We can't promise that it will bring the price back to 0.20$ but we will use it All to recover this attack," they wrote on Telegram.