Terra decides to release "Terra 2.0", because apparently the way to fix a crypto catastrophe is with more crypto

Following the dramatic collapse of Terra earlier this month, the Terra ecosystem voted to pass a proposal by Do Kwon to create "Terra 2.0". The project intends to "effectively create a new Terra chain without the algorithmic stablecoin"—an odd choice given that the whole point of the original Terra was the stablecoin. The proposal also involves renaming the existing Luna ($LUNA) coin to "Luna Classic" ($LUNC), so that Luna 2.0 can take its place—a change that I'm sure will not cause any confusion whatsoever.

Billy Markus, one of the original creators of the Dogecoin cryptocurrency (both of whom have since left the project), tweeted, "luna 2.0 will show the world just how truly dumb crypto gamblers really are".

Scammer steals 29 Moonbirds NFTs nominally worth about $1.5 million from a single collector

A purple pixel art owl with one squinting eye, on a green backgroundMoonbird #8749 (attribution)
A scammer was able to trick a prolific NFT collector into signing a transaction on a fake trading website, which then allowed them to maliciously transfer 29 pricey Moonbirds NFTs in a single transaction. Moonbirds are a popular collection of pixel art owls that currently trade with a floor price of 24 ETH (about $48,000). The trader who was targeted was a big time Moonbirds fan, holding 29 of the NFTs in their affected wallet. The loss has been estimated at around 750 ETH (~$1.5 million).

The highly exclusive group of NFT collectors known as Proof Collective, of which this trader was a member, was reportedly preparing a report for the FBI and police. Because the attacker used an exchange that requires KYC there may be some possibility that their identity could be traced, although falsified KYC is also increasingly common.

The WeWork founders are starting a carbon credit crypto company and they already raised $70 million in funding

Adam and Rebekah Neumann, the duo behind the WeWork coworking space company that imploded spectacularly in 2019, have re-emerged to start a company called Flowcarbon. The company intends to "tokenize carbon credits"—which they're calling "Goddess Nature Tokens"—and sell them to companies hoping to green up their image. The need for a blockchain is unclear.

The company has already raised $70 million in token sales and a Series A funding round led by Andreessen Horowitz (aka a16z), which seems like a startling amount of money to give to someone who resigned from his previous company amidst accusations of some serious self-dealing and the creation of toxic corporate culture.

DecentraWorld project rug pulls for $1 million

An illustration of a world with lines and dots connecting around it, with the word "decentraworld" in white capital lettersDecentraworld logo (attribution)
The creators of the Decentraworld project, and its associated $DEWO token, rug pulled for 3127 BNB, valued at just over $1 million. The project promised an "ecosystem of dapps with privacy protocols by default". The website spoke of how "governments around the world want to keep controlling their citizens by fighting the one thing they can’t control, the blockchain and crypto-assets", and the project promised to "help humanity maintain its privacy, control, and financial freedom". Unfortunately for the believers, this turned out not to be true when the project drained the funds and deleted their online presence.

Representative Madison Cawthorn under ethics investigation related to crypto, violated STOCK Act

Official portrait of Madison CawthornMadison Cawthorn (attribution)
The U.S. House of Representatives Committee on Ethics announced on May 23 that they had unanimously voted to investigate whether Representative Madison Cawthorn (R-NC) "improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest", as well as one unrelated allegation.

On May 26, Cawthorn filed a disclosure to say he had bought between $100,000 and $250,000 of the "Let's Go Brandon" ($LGB) coin on December 21—eight days before posting that the coin would "go to the moon" just before a deal with NASCAR was announced. The coin then went up in price and Cawthorn sold at least $100,000 of his holdings. This timing led to accusations that Cawthorn had advance knowledge of the partnership.

Cawthorn also disclosed in the same May 26 filing that he bought between $101,000 and $265,000 of Ethereum in late December. Although Congressmembers are required by the STOCK Act to disclose purchases of various assets (including cryptocurrencies) within 45 days of the transaction, Cawthorn's disclosure came five months after the purchase. Cawthorn recently lost his primary, ending his chances of re-election, but his current term isn't slated to end until January 2023.

Crypto speculator loses over $200,000 to wallet compromise

Crypto speculator Jonny Reid wrote on May 22 that his crypto wallet had been hacked and drained of approximately $203,000. He wrote that he had never owned a hardware wallet before and had only used MyEtherWallet and MetaMask. "My security has always been great, always cautious with phishing links / websites / discord / telegram / social media scans etc". He wrote that he suspected the compromise might have been the result of a Chrome extension he had downloaded to auto-refresh a page to schedule a passport appointment.

Reid traced the stolen funds until they disappeared into the crypto exchange "Fixed Float". Reid contacted the exchange, who told him they couldn't supply him with server logs without a law enforcement request. Reid wrote that he was "angry [with] the fact they cant provide me with any details to help me follow the trace" and urged crypto Twitter to try to pressure the exchange to release more information to him.

Founder of Milady NFT project revealed to have horrifying history involving a 4chan suicide cult, white supremacist cult, and pro-anorexia grooming

An anime style illustration of a person with green hair wearing a cat ears headband and light blue blouse with a peter pan style collar. At the bottom of the illustration are defense and attack points bars like in a card game.Milady #5539 (attribution)
The founder of the Remilia Collective and its popular "Milady Maker" NFT project, "Charlotte Fang", was discovered to have been a key player in a white supremacist cult known as Kali Yuga Accelerationism (abbreviated "kaliacc"). They were also tied to a group called "Systemspace", that is variously described as a suicide cult and as a 4chan trolling attempt that nevertheless tried to drive people to suicide. They also engaged in what they themselves described as "grooming" and "bullying" of young people into disordered eating and self-harm, and were apparently deeply involved with pro-ana online culture.

"Charlotte Fang" originally tried to deny the connection, attempting to cover up the connections between their online aliases and encouraging others to lie and also cover up any mentions of the alter ego. However, they eventually admitted to their past, writing that it was "toxic baggage that's hurting Milady community & poisoning the vibe". They apologized for trying to hide the account, attempted to brush off their past actions as "trolling" that didn't reflect their "real views", announced they would be leaving the project team, and finished by saying they were "more bullish than ever for Milady".

Beeple's Twitter account is hacked and used to promote fake NFT mints

Tweet by beeple: "Been working on this with LV for a long time behind the scenes. 1000 total unique pieces. BEEPLE x VUITTON COLLECTION_1: BEEPLES Official Raffle Below. 1 ETH = 1 Raffle Entry. All non-winning entries are refunded post-raffle. Good luck :)"Tweet from Beeple's compromised account (attribution)
Attackers gained control of the Twitter account belonging to Beeple, an artist known for "selling" an NFT for $69 million in March 2021 and for his recent horror-inducing NFT collab with Madonna. They used the account to share two scam mint links—first to a supposed NFT collaboration with Louis Vuitton, then to "extra" artwork Beeple supposedly created but never minted as NFTs. The scam drew in around $272,000 in ETH and stole 45 NFTs worth approximately $166,000 before Beeple regained control of his Twitter account about five hours later.

Various commenters replied to Beeple's tweet to say they'd been scammed, and to ask if he could help them recover their funds or NFTs. Some blamed him and his poor security practices for their losses, asking if he would repay those who were scammed. He has not suggested he intends to do so.

bDollar stablecoin suffers $730,000 price manipulation attack

bDollar was the first algorithmic stablecoin on the BSC blockchain. An attacker was able to manipulate the price of underlying assets to pull 2,381 wBNB out of the protocol, worth around $730,000. The project had been audited by CertiK.

Class action lawsuit filed against HUMBL blockchain platform

A litigation firm filed a class action lawsuit against HUMBL, a financial services company that touts its web3 and defi products. The lawsuit alleges that HUMBL and its executives made false and misleading statements about the company and its prospects, made "selectively timed announcements to keep Humbl stock price high so that Company insiders could sell off their holdings into artificially created volume", and sold its BLOCK ETX assets in violation of securities laws.

HUMBL stock has dropped from a high of $6.84 per share to a low of $0.11. Similarly the BLOCK ETX asset has dropped more than 87% from its high.

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