Unicorn Nodes defi project rug pulls hours after launch
Unicorn Nodes claimed to be a "defi-as-a-service" project. It launched its $RNBW token on April 14, despite warnings from "TheBreadmaker", who rates various protocols. Only hours after launch, someone sold 5,432 RNBW (~$129,000), draining the liquidity pool and crashing the token price. Although the project creators initially claimed that the project had been exploited by an external actor, and that it wasn't a rug pull, by that evening they had scrubbed their website and Twitter presence.
Monero holders plan a bank run
Monero is a privacycoin that attempts to address some of the privacy issues with more popular currencies (like Bitcoin or Ethereum) — namely, that anyone can see that wallet A sent a transaction of X amount to wallet B. However, privacy cuts both ways, and this feature also means that, without cooperation from the exchanges, the Monero community can't verify that exchanges actually hold the amounts of Monero they're allowing their users to buy. Some in the community have become increasingly suspicious that exchanges are selling "paper Monero": fake Monero that's not actually backed by reserves.
To try to test this theory, Monero users have scheduled what is basically a bank run: they are encouraging all users to try to move their Monero out of exchanges on April 18. Some have claimed that exchanges including Binance and Huobi have frozen withdrawals of Monero in anticipation of the mass-withdrawal, in an effort to prevent their lack of reserves from being discovered. Indeed, Huobi suspended XMR deposits and withdrawals 10 days ago and has yet to restore the functionality, which they say is due to a wallet upgrade. Binance also shows "withdrawal suspended" on its status page as of April 14.
- " 'The Monerun' scheduled for April 18th, Monero's 8th birthday", Monero Observer
- "The Monerun", on r/CryptoCurrency
Archie Comics announces "Archiverse" NFT project to overwhelmingly negative reception
Archie Comics announced they would be launching an NFT project called "Archieverse", which centers around their spooky "Madam Satan" character and invites people to "unlock the universe of Archie Comics to play, create, and be credited on a forthcoming comic book title". The project's creators have some pretty high hopes, aiming to mint 66,666 NFTs at $66.66 each, which would earn them $4.4 million from the mint alone if they were to sell all of them.
Reception to the project was swift and overwhelmingly negative. Even the biggest Archie fans who already populated the existing Archie Comics Discord (which saw the addition of crypto channels on the day of the announcement) seemed largely unhappy with the news, and a plan to migrate to their own server free from the NFT and crypto chat was quickly hatched.
Influencer "The Real Tarzann" (aka Mike Holston) rug pulls NFT project to the tune of $700,000
Influencer, conservationist, and exotic animal whisperer "The Real Tarzann" (a.k.a. Mike Holston) announced in October 2021 his plans for an NFT project called "Tribes of Ogun". The project promised an ambitious roadmap that included creating a strategy game, generous giveaways including trips to Africa, and donations to the World Wildlife Fund. Various prominent influencers and athletes helped to hype the project in advance of its mint.
The project ultimately minted only 3,179 of the 5,500 planned NFTs, but at 0.068 ETH a pop this still brought in 216 ETH (just under $700,000). The project quickly reduced the supply to avoid the appearance of a lukewarm mint. The NFTs themselves are all illustrations of men wearing various animal heads as headdresses — an odd choice for an animal conservation project.
In November 2021, much of the team suddenly disappeared and stopped posting to Instagram or Twitter. One mod in the Discord has remained positive for months since the apparent rug pull, urging the remaining community members to remain positive. In March 2022, the mod wrote, "I need a huge favor this week from everyone to not spam the accounts of NFT.com guys and Tarzan, it is EXTREMELY IMPORTANT that stops if we want this to comeback, hopefully huge news to follow this week." No such news appears to have come.
Bug discovered in popular Rarible platform: NFTs could execute malicious JavaScript
Security research group Check Point Research discovered a flaw in the NFT trading platform Rarible, which would have allowed an attacker to steal the entire contents of users' NFT wallets. A user who received a link to a malicious NFT, or clicks on it in the Rarible marketplace, would cause it to execute JavaScript code that would attempt to send a "setApprovalForAll" request, which an unsuspecting user would likely be less wary of when interacting with a known, trusted marketplace like Rarible.
The vulnerability was discovered after Taiwanese singer Jay Chou had a Bored Ape NFT stolen in April, prompting the researchers to look into the details of the attack. After the researchers responsibly disclosed their findings to Rarible, Rarible implemented a fix. Rarible removed the ability for users to upload SVG files to patch the vulnerability; it's not clear if they intend to restore that functionality.
Authorities link Axie Infinity hack to North Korean Lazarus hacking group
According to the FBI, the infamous cybercrime group Lazarus has been implicated in the March Axie Infinity exploit that saw $625 million taken from the game's blockchain bridge. Lazarus are a criminal group with strong ties to North Korea, and are suspected of being behind infamous cyberattacks including the WannaCry ransomware that impacted a wide number of industries including hospitals and manufacturing, as well as legislative and justice systems. The U.S. Treasury department has added the crypto wallet that received the stolen funds to its sanctions list, which may make it substantially harder for the attackers to withdraw the money. The wallet still contains around 150,000 ETH, valued at around $445 million, but has been slowly siphoning it out to various other wallets, exchanges, and tumblers over the past weeks.
- "Community Alert: Ronin Validators Compromised", Ronin Newsletter
- U.S. Department of Treasury announcement showing the sanctioned wallet address
- Attacker wallet on Etherscan
RCMP says more than $2 million has been lost to crypto scams in Richmond, B.C. since January
The police in Richmond, British Columbia say they've received 22 reports of crypto fraud, which have included fake investment schemes, romance scams, or scammers impersonating government officials. One individual targeted by a fake investment scheme lost CA$550,000, which he thought he was investing in foreign exchange companies that turned out to all be fake.
Shareholders file a class-action suit against Coinbase over deceptively positive statements
A group of shareholders have filed a class-action lawsuit against Coinbase, alleging that the registration and prospectus statements provided for the company's IPO were false and misleading. The suit alleges that Coinbase failed to disclose that the company would require a large cash injection, and that it was susceptible to outages that were becoming more common as the company scaled. They described the company's positive statements about its outlook as "materially misleading and/or lack[ing] a reasonable basis".
Fake SkyVerse project draws in more than $150,000
A scammer recreated the Twitter account for SkyVerse, a much-anticipated NFT land project due to launch in "mid-April". More than 250 NFT collectors eager to get in on a mint that has only vaguely pointed to a date have fallen prey to a scammer convincing them that not only has the project started minting, but they're rapidly selling out. The scammer implemented a "counter" on the webpage that appears to show the project quickly selling out in real-time, apparently hoping to increase the FOMO that might encourage someone to hastily connect their wallet. However, a glance at the website source shows the counter is just instantiated to a fixed value, and then increments arbitrarily to show the counter approaching the maximum number of NFTs that will be sold. So far, the website has drawn 50 ETH ($150,000) from would-be collectors trying to mint NFTs for 0.1 ETH ($300) each.
NFT collector gets $280 top bid for the Jack Dorsey tweet NFT he bought for $2.9 million last year
After Jack Dorsey made an NFT out of his first-ever tweet, then-cryptocurrency executive Sina Estavi won the auction in March 2021 with a 1,630 ETH bid (then around $2.9 million). A little over a year later, on April 6, Estavi tweeted that he would be selling the NFT. He listed the NFT on Opensea for 14,969 ETH (around $46 million), in an auction slated to last a week. When the auction closed, there were seven offers ranging from 0.0019 ETH ($6) to 0.09 ETH ($277). It's still up to Estavi whether or not to accept a bid.