It's been a rough few days for TerraUSD, one of several popular <button class="define-target" id="stablecoin">stablecoins</button> <button class="define-target" id="peg">pegged</button> to the US dollar. Unlike many stablecoins like Tether or USDC, Terra is an <button class="define-target" id="algorithmic-stablecoin">algorithmic stablecoin</button>, meaning that instead of (ostensibly) being backed 1-1 by various assets, they are based around an algorithm that uses various market incentives to maintain a set price. UST is the largest algorithmic stablecoin on the market at the moment, followed by projects like Fei and FRAX.<p>The incentives that should keep TerraUSD trading at $1 have been put to the test lately, with a combination of spiraling cryptocurrency prices across the board and some apparent large sell-offs by those holding UST. The coin dipped down to $0.992 on May 7 before some large buys returned it close to its peg. It dipped again by a smaller amount the following day, reaching a low of around $0.994. These values may seem like small changes on the micro scale, but when major stablecoins diverge from their peg by even fractions of a cent they have major effects throughout the cryptocurrency ecosystem.</p><p>On May 9, UST saw its most extreme de-peg, plunging to $0.95, then again to $0.84 later that day, despite Luna Foundation Guard liquidating $1.3&nbsp;billion in Bitcoin reserves to try to restore the peg.</p><p>Do Kwon, cofounder of Terraform Labs, initially seemed to be doing his best to portray confidence on Twitter by tweeting things that give the exact opposite impression. "If yall girls are gonna <button class="define-target" id="fud">fud</button>, try to do it during my waking hours pls," he wrote on May 7. "You could listen to [crypto Twitter] influensooors about UST depegging for the 69th time. Or you could remember they're all now poor, and go for a run instead", he tweeted, somewhat blithely acknowledging UST's repeated history of losing its peg. His tweets seemed to take a more serious turn beginning the evening of May 8, as the situation grew more dire.</p>

Terra/Luna collapse

TerraUSD (UST) stablecoin dramatically loses its peg

Aaaand there it goes.<p>FTX announced that it had filed for Chapter 11 bankruptcy in the United States. Sam Bankman-Fried resigned as CEO.</p><p>SBF had spoken about trying to raise additional funds. In leaked Slack messages, he had allegedly written that "One could maybe say, if they wanted to be optimistic, that we have a lot theoretically in and/or potentially for the raise". No one was actually saying this.</p>

FTX collapse

FTX files for bankruptcy, Sam Bankman-Fried resigns

A court in the British Virgin Islands ordered the liquidation of Three Arrows Capital, a crypto hedge fund. This follows initial <a href="https://web3isgoinggreat.com/?id=three-arrows-capital-crypto-hedge-fund-may-be-insolvent" target="_blank">rumors</a> in mid-June that the firm was insolvent, then a <a href="https://web3isgoinggreat.com/?id=three-arrows-capital-looks-for-a-bailout" target="_blank">report</a> shortly after that the group was looking at options including asset selloff or a buyout.<p>The court action followed lawsuits from several creditors over its failure to pay debts. Those creditors included Voyager Digital, who <a href="https://web3isgoinggreat.com/?id=voyager-digital-reduces-withdrawal-limit" target="_blank">reduced their platform's withdrawal limit</a> after reporting their exposure to 3AC, as well as the crypto exchange Deribit.</p>

"Crypto Hedge Fund Three Arrows Ordered by Court to Liquidate"

Three Arrows Capital collapse

Three Arrows Capital ordered to liquidate

One month after pausing customer withdrawals, crypto lending firm Celsius Network filed for Chapter 11 bankruptcy. Celsius had recently hired a new group of restructuring lawyers from Kirkland &amp; Ellis, the same group <a href="https://web3isgoinggreat.com/?id=voyager-digital-files-for-bankruptcy" target="_blank">counseling Voyager Digital in their bankruptcy proceedings</a> announced on July 6.

"Crypto Lender Celsius Files for Bankruptcy After Cash Crunch"

"Troubled Crypto Lender Celsius Hires New Restructuring Lawyers"

Celsius collapse

Celsius files for bankruptcy

Crypto lending firm BlockFi has filed for Chapter 11 bankruptcy in the wake of the FTX collapse. The company was in dire straits in the spring after Terra and Three Arrows Capital blow-ups, but was bailed out in June by a <a href="https://web3isgoinggreat.com/?id=sam-bankman-fried-performs-second-bailout-loaning-250-million-to-blockfi" target="_blank">$250&nbsp;million loan from FTX</a>, followed by a deal giving BlockFi a $400&nbsp;million credit facility and giving FTX the "option to acquire" BlockFi.<p>Because of this dependency, it was no surprise when BlockFi announced they were once again in crisis following the FTX explosion. On November 15, <a href="https://web3isgoinggreat.com/?id=blockfi-plans-layoffs-possible-bankruptcy-after-ftx-collapse" target="_blank">the <i>Wall Street Journal</i> reported</a> they were preparing for possible bankruptcy and considering layoffs.</p><p>On November 28, BlockFi filed for bankruptcy. Their filing estimates they have more than 100,000 creditors (the maximum option on the form), between $1–10&nbsp;billion in assets, and between $1–10&nbsp;billion in liabilities.</p>

"Important Client Update - November 28, 2022"

BlockFi bankruptcy

BlockFi files for bankruptcy

After a domino effect in which Gemini <a href="https://web3isgoinggreat.com/?id=gemini-halts-withdrawals-from-their-lending-service" target="_blank">suspended withdrawals</a> from its "Earn" lending product due to Genesis <a href="https://web3isgoinggreat.com/?id=genesis-crypto-lending-service-halts-withdrawals" target="_blank">suspending withdrawals</a> due to FTX's <a href="https://web3isgoinggreat.com/?id=ftx-files-for-bankruptcy-sam-bankman-fried-resigns" target="_blank">collapse</a>, it's been revealed by the <i>FT</i> that Genesis holds around $900&nbsp;million in Gemini customer assets.<p>Gemini has formed a creditor committee to try to recoup funds from Genesis, as well as Genesis parent company DCG.</p>

"Crypto broker Genesis owes Winklevoss exchange’s customers $900mn"

Genesis owes Gemini

Genesis owes $900&nbsp;million to customers of Gemini Earn

One of the most popular <button class="define-target" id="play-to-earn">play-to-earn</button> games, Axie Infinity, suffered an enormous hack to the Ronin network on which it runs. The project announced that a majority of Ronin validator nodes had been compromised — four belonging to the Sky Mavis company that builds Axie Infinity, and one belonging to the Axie <button class="define-target" id="dao">DAO</button>. After gaining control of the validators, they were able to approve malicious withdrawals of 173,600&nbsp;ETH (about $600&nbsp;million) and 25.5M USDC (a <button class="define-target" id="stablecoin">stablecoin</button>, worth $25.5M). The $625&nbsp;million loss was possibly the largest to date in the history of <button class="define-target" id="defi">defi</button> projects.<p>Sky Mavis announced that they had halted the Ronin <button class="define-target" id="bridge">Bridge</button> and Katana DEX, and were making changes to their network to try to guard against future attacks. They also wrote that they were "working with law enforcement officials, forensic cryptographers, and our investors to make sure all funds are recovered or reimbursed".</p>

"Community Alert: Ronin Validators Compromised"

"Axie Infinity’s Ronin Network Suffers $625M Exploit"

"The Axie Infinity hack, what happened, and why people keep talking about bridges"

Axie Infinity bridge hack

Popular blockchain game Axie Infinity suffers a $625&nbsp;million exploit, the largest in defi history

Binance Smart Chain, the relatively popular blockchain that Binance is trying to rebrand as "BNB Chain", was halted when an attacker exploited "BSC Token Hub", the <button class="define-target" id="bridge">bridge</button> between the old Binance Beacon Chain and BSC. The attacker successfully moved around $127&nbsp;million of the stolen crypto assets off the chain before it was paused. The attacker's wallet contained 2&nbsp;million&nbsp;BNB, valued at $586&nbsp;million based on the price at the time of the hack, but as a result of the chain halt, they were not able to exfiltrate the entire amount.<p>Binance CEO Changpeng Zhao ("CZ") tweeted that "An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC." A BSC developer later confirmed that "we coordinated with validators to temporarily suspend BSC after having determined an exploit on a cross-chain bridge, BSC Token Hub- which resulted in extra BNB". The value of the $BNB token dropped from $293.10 to $280.40 after the news.</p><p>The chain operators and CZ seemed to feel a little awkward about the ramifications of unilaterally deciding to halt a supposedly decentralized blockchain. CZ claimed he was asleep and that the chain had already been halted by the time he woke up. The BSC team published a blog post saying that "Decentralized chains are not designed to be stopped, but by contacting community validators one by one, we were able to stop the incident from spreading. It was not that easy as BNB Smart Chain has 26 active validators at present and 44 in total in different time zones. This delayed closure, but we were able to minimize the loss." They also promised to try to decentralize the project even further going forward.</p>

"Binance Smart Chain Halts After 'Potential Exploit' Drains Estimated $100M in Crypto"

"Binance is ‘narrowing down’ identity of hacker behind $570 million crypto attack, CEO says"

Binance bridge hack

Binance Smart Chain halts after $570&nbsp;million bridge exploit

Over $477&nbsp;million was mysteriously withdrawn from FTX and FTX US late on November 11, despite the company freezing withdrawals.<p>An FTX account administrator wrote on the FTX support Telegram, "FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans". The message was pinned by FTX General Counsel Ryne Miller.</p><p>Miller later wrote on Twitter, "Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will share more info as soon as we have it."</p><p>A Telegram admin subsequently wrote, "Not all hope is lost. Engineers have managed to retrieve substantial amount of funds," but no details were provided beyond that. A later announcement by Miller claimed that FTX had "initiated precautionary steps to move all digital assets to cold storage", suggesting some of the transfers may have been a part of that effort.</p><p>Many speculated that the so-called hack had been coordinated by insiders.</p>

"FTX Faces Potential Hack, Sees Mysterious Outflows Totaling More than $600M"

FTX hack

FTX claims it was hacked as more than $400&nbsp;million is withdrawn

Voyager Digital, a crypto broker that <a href="https://web3isgoinggreat.com/?id=voyager-digital-suspends-withdrawals-and-other-activity" target="_blank">suspended withdrawals</a> a week prior, announced that it had filed for bankruptcy. They attributed their decision to "prolonged volatility and contagion in the crypto markets", as well as their exposure to Three Arrows Capital, an also-bankrupt crypto fund that <a href="https://web3isgoinggreat.com/?id=voyager-digital-reduces-withdrawal-limit" target="_blank">defaulted on a loan</a> from Voyager worth around $660&nbsp;million.<p>Voyager CEO Stephen Ehrlich wrote on Twitter that he expected that Voyager would "emerge as a stronger company", certainly an optimistic prediction  for a crypto broker that froze customer funds with no promise they will ever be able to access them, then filed for bankruptcy.</p>

"Voyager Digital Commences Financial Restructuring Process to Maximize Value for All Stakeholders"

Voyager Digital bankruptcy

Voyager Digital files for bankruptcy

The Wormhole Network is a <button class="define-target" id="bridge">blockchain bridge</button> between Solana and various other blockchains, allowing assets to be traded across the different and not otherwise interoperable chains. After an attacker was able to spoof a guardian account, Wormhole was exploited on February 2 for 120,000&nbsp;<button class="define-target" id="wrapped-token">wETH</button>, or about $326&nbsp;million. The network was taken down for maintenance, and Wormhole promised that "ETH will be added over the next hours to ensure wETH is backed 1:1". The parent company of Wormhole, Jump Trading, replaced the funds that had been drained; meanwhile, Wormhole offered a $10&nbsp;million <button class="define-target" id="bug-bounty">bounty</button> to try to tempt the attacker into returning the funds. The hack was the fourth-largest cryptocurrency theft of all time, trailing behind the $480&nbsp;million Mt. Gox theft in 2014, the $547&nbsp;million Coincheck theft in 2018, and the <a href="https://web3isgoinggreat.com/?id=2021-08-11-0" target="_blank">$611&nbsp;million Poly Network theft</a> (that was later returned) in 2021.

"How $323M in crypto was stolen from a blockchain bridge called Wormhole"

Wormhole bridge hack

Wormhole, a cross-blockchain bridge, is hacked for more than $320&nbsp;million in one of the largest hacks to date

Babel Finance, a crypto lender that <a href="https://web3isgoinggreat.com/?id=babel-finance-suspends-withdrawals-and-redemptions" target="_blank">suspended withdrawals</a> in mid June, sustained "massive losses" thanks to its proprietary trading desk, which was trading with customer funds. According to a restructuring plan viewed by Bloomberg, Babel's prop desk lost around 8,000&nbsp;BTC and 56,000&nbsp;ETH, valued at around $225&nbsp;million at the time of the loss. The trading team was not using risk controls, and their unhedged position led to forced liquidations that made Babel's lending and trading departments unable to meet its margin calls from counterparties like <a href="https://web3isgoinggreat.com/?id=zipmex-indefinitely-halts-withdrawals" target="_blank">Zipmex</a>.

"Troubled Crypto Lender Babel Lost Big While Trading Client Funds"

Babel Finance collapse

Restructuring plans reveal Babel Finance's $225&nbsp;million losses during crypto market dip

After <a href="https://web3isgoinggreat.com/?id=hodlnaut-halts-withdrawals" target="_blank">halting withdrawals</a> on August 8, Singaporean crypto lender Hodlnaut has applied for protection against creditors: a process similar to the U.S. Chapter 11 bankruptcy.<p>They explained in a statement that they made the decision in order to try to avoid forced asset liquidation, "as it is a suboptimal solution that will require us to sell our users' cryptocurrencies at these current depressed asset prices".</p>

"Crypto Lender Hodlnaut Applies for Creditor Protection in Singapore"

Hodlnaut collapse

Hodlnaut applies for creditor protection

After an attacker began exploiting a vulnerability in the Nomad <button class="define-target" id="bridge">bridge</button>, many people rushed to replicate the attack and steal some of the roughly $190&nbsp;million of various cryptocurrencies in the bridge. Some didn't seem to think through the consequences of using wallets tied to their real-life identities to exploit the vulnerability, which should be interesting to watch.<p>Nomad posted on Discord and tweeted that they were "aware of the incident" and "investigating", but the attack was ongoing over an hour after the acknowledgement.</p><p>Four days before the attack, Nomad announced that they'd raised a $22.4&nbsp;million seed round from investors including Coinbase, OpenSea, and Crypto.com.</p>

Nomad bridge hack

People rush to steal some of the $190&nbsp;million in the Nomad bridge after an exploit is discovered

All my magic beans gone. An attacker successfully used a <button class="define-target" id="flash-loan">flash loan</button> attack to exploit a flaw in Beanstalk Farms' stablecoin protocol, which allowed them to make off with 24,830&nbsp;ETH (almost $76&nbsp;million). The attacker then donated $250,000 to Ukraine before moving the remaining funds to Tornado Cash to <button class="define-target" id="tumbler">tumble</button>.<p>Estimated damages to the project were higher than the amount the hacker was able to take for themselves — around $182&nbsp;million. The $BEAN token, once pegged to $1, dropped to nearly 0. The project creator wrote in the Discord, "We are fucked. This project has not had any venture backing, so it is highly unlikely there is any sort of bail out coming." However, they were later slightly more optimistic, writing, "it may also be the start of something good... there may be a path forward. We don't want to comment on next steps until that path is at least visible to us" while reiterating that a bail-out was "highly unlikely". They also told members of their community that they had contacted the FBI about the theft.</p>

Beanstalk Farms hack

Beanstalk Farms stablecoin project loses $182&nbsp;million to exploit

The algorithmic market maker Wintermute suffered a major hack, according to their CEO. He estimated the loss at around $160&nbsp;million, also writing that the company is "solvent with twice over that amount in equity left".<p>Wintermute hasn't disclosed more about the attack, but it's possible that the hacker may have exploited the <a href="https://web3isgoinggreat.com/?id=vulnerability-discovered-in-vanity-wallet-generator-puts-millions-at-risk" target="_blank">vulnerability in the vanity wallet address generator Profanity</a>, which was disclosed five days prior. The crypto asset vault admin had a wallet address prefixed with <code>0x0000000</code>, a vanity address that would have been susceptible to attack if it was created using the Profanity tool.</p><p>This is the second incident involving Wintermute in the past few months. In June, the group provided the wrong wallet address to the Optimism project, and Optimism sent 20&nbsp;million&nbsp;OP tokens to a non-existent address. Another person noticed the error before they did and was able to take the tokens. They ultimately returned 17&nbsp;million of the tokens to Wintermute, keeping the rest as a "<button class="define-target" id="bug-bounty">bounty</button>". $OP have been trading at around $1 as of mid-September.</p>

"Experts blame a 'vanity address' bug for Wintermute's $160 million hack"

Wintermute hack

Wintermute hacked for $160&nbsp;million

Freeway, a financial scheme where users buy "Superchargers", which are crypto "simulations" that promise to pay out rewards of up to 43% annually, seems to have taken the off-ramp. The project announced to its users that due to "unprecedented volatility in Foreign Exchange and Cryptocurrency markets in recent times", they would be pausing their Supercharger program. The project reportedly halted withdrawals on more than $160&nbsp;million worth of assets.<p>Worryingly, the company also removed all mentions of its team from their website, and reportedly removed an attestation to the company's financial backing as well.</p><p>The day before the project announced the pause, crypto whistleblower and researcher FatMan published a Twitter thread urging people to withdraw funds immediately because he believed they were operating a Ponzi scheme. "In my opinion, it's likely that Freeway will collapse within the next few months and that all depositors will lose everything."</p>

Freeway rug pull

Freeway halts withdrawals, accused of $160&nbsp;million rug pull

Mango Markets, a Solana-based <button class="define-target" id="defi">defi</button> project offering borrowing, lending, and leverage trading, was exploited for $116&nbsp;million. An attacker manipulated the supposed value of their collateral on the platform, allowing them to take out massive loans from the project treasury that they never repaid. In total, they stole around $116&nbsp;million worth of Solana tokens. However, only a few exchanges have sufficient liquidity to support exchanging or withdrawing that quantity of tokens, and those exchanges (Coinbase, Binance, and Kraken) froze the attacker's wallets.<p>Mango Markets posted on Twitter to urge users not to deposit into the project, and asked the hacker to contact them "to discuss a <button class="define-target" id="bug-bounty">bug bounty</button>". The hacker had their own plans, instead submitting a governance proposal in which they would return $46&nbsp;million of the stolen funds (keeping $70&nbsp;million) in exchange for a promise that the protocol would not try to freeze the assets or pursue criminal charges. The hacker then used their 32&nbsp;million governance tokens to vote in support, but ultimately were not able to get the proposal to pass. A different proposal with largely the same terms, but which left the attacker with only $47&nbsp;million of the stolen funds, passed shortly after.</p>

Mango Markets exploit

Mango Markets suffers loss of more than $116&nbsp;million

Hackers were able to discover and exploit a bug in the decentralized exchange Maiar, stealing assets notionally worth $113&nbsp;million. Maiar developers took the exchange offline soon after discovering the exploit, but not before the hackers made off with 1.65&nbsp;million EGLD (the native token of the Elrond blockchain, on which Maiar is built). The sale of around $54&nbsp;million of the pilfered EGLD caused the token to plummet from $76 to $5 on the Maiar exchange.<p>Maiar's founder and CEO has claimed that "most exploited funds have been either recovered in full, or will be covered by the Elrond Foundation", though it's not clear how (or if) any of the funds were recovered.</p>

"Decentralized Crypto Exchange Offline After Hacker Steals $113M"

Maiar exchange hack

Decentralized exchange Maiar exploited for $113&nbsp;million

The Horizon Bridge is a blockchain <button class="define-target" id="bridge">bridge</button> allowing assets to be used across Ethereum, BNB, and Harmony blockchains. The bridge is run by the Harmony blockchain project.<p>On June 23, someone was able to steal assets from the bridge that they then converted to more than 85,800&nbsp;ETH. The stolen funds are notionally valued at almost $100&nbsp;million, assuming the thief can cash them out successfully. Hours after the attack, most of the funds remained in the thief's wallet and had not yet been laundered.</p><p>A June 29 analysis by blockchain research firm Ellipsis claimed that "there are strong indications that North Korea's Lazarus Group may be responsible for this theft". Lazarus was also behind the <a href="https://web3isgoinggreat.com/?id=axie-infinity-suffers-625-million-exploit" target="_blank">$625&nbsp;million bridge hack in March</a>, targeting the Axie Infinity game.</p>

"The $100 Million Horizon Hack: Following the Trail Through Tornado Cash to North Korea"

Horizon Bridge hack

Cryptocurrencies notionally worth $100&nbsp;million stolen from Horizon Bridge

The U.S. Department of Justice announced they had filed charges against Emerson Pires, Flavio Goncalves and Joshua David Nicholas, the two founders and the "head trader" of the EmpiresX cryptocurrency investment platform. The DoJ alleges that the project was a <button class="define-target" id="ponzi">Ponzi scheme</button>, and that they were offering an unregistered security. They also alleged that the duo were misrepresenting a supposed proprietary trading bot, and fraudulently guaranteeing investment returns. The EmpiresX scheme reportedly pulled in $100&nbsp;million from investors, and appears to have run from 2020 until early 2022.<p>All three are facing charges of conspiracy to commit wire fraud and conspiracy to commit securities fraud, and Pires and Goncalves have also been charged with conspiracy to commit international money laundering. If convicted on all counts, Pires and Goncalves face up to 45&nbsp;years in prison and Nicholas faces up to 25&nbsp;years in prison.</p>

"Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving Over $100 Million in Intended Losses"

EmpiresX ponzi scheme

U.S. Department of Justice charges founders of the $100&nbsp;million EmpiresX ponzi scheme

A crypto researcher who goes by "FatMan" discovered that the Mirror Protocol in the Terra ecosystem contained a serious vulnerability, that was quietly patched with no announcement on May 9. The Mirror Protocol code previously lacked a duplicate check, which meant that attackers could create a short position and then withdraw it repeatedly in the same transaction, taking many times more money than they should have been authorized to withdraw.<p>FatMan discovered one instance where a person deposited $10,000 and later withdrew $4.3&nbsp;million. According to FatMan, they found repeated exploits of this type that earned attackers "well over $30&nbsp;million". Another researcher on Terra forums estimated about $88&nbsp;million had been exfiltrated from the project in this way, over the many months the bug went undiscovered and unpatched by Mirror developers.</p>

"More bad news for Terra as fresh allegations emerge about Mirror Protocol"

Mirror Protocol vulnerability

Researcher discovers vulnerability in the Terra Mirror Protocol that allowed attackers to siphon tens of millions from the project

An attacker exploited a bug in Qubit Finance, a decentralized lending platform. The bug allowed them to call the "deposit" function without actually depositing any funds. This enabled the attacker to <button class="define-target" id="mint">mint</button> 77,162&nbsp;xETH collateral, which they exchanged for BNB worth nearly $80&nbsp;million. The platform has said they have tried to contact the exploiter to offer the "maximum bounty", which is apparently $250,000. Tempting, I'm sure.

"Hackers have stolen $80 million in cryptocurrency from the Qubit DeFi platform"

Qubit Finance hack

Attacker exploits a bug in Qubit Finance allowing them to mint unlimited collateral and drain the platform of $80&nbsp;million

A hacker attacked multiple Rari <button class="define-target" id="liquidity-pool">liquidity pools</button> relating to the Fei Protocol, exploiting a known re-entrancy vulnerability that exists on <button class="define-target" id="fork">forks</button> of the Compound protocol. The attacker stole more than $80&nbsp;million from the projects.<p>Fei Protocol tweeted that they had paused borrowing to avoid further thefts, and offered a $10&nbsp;million <button class="define-target" id="bug-bounty">bug bounty</button> if the hacker returned the money.</p>

Fei Protocol hack

$80&nbsp;million stolen from Fei Protocol and Rari

The Pixelmon project promised an ambitious roadmap including a Pokémon-like game where the pixelized Pokémon could be caught and traded, a land project, and rewards to buyers of their "Generation 1" Pixelmon. The 3D pixelized Pokémon on their flashy website and on social media certainly looked promising to the buyers who sunk a total of $70&nbsp;million into the project. Those buyers, who spent 3ETH per mint (~$9,300), were excited to unveil their "fully modeled 3D character[s] that you can interact with". However, when they "hatched" their Pixelmon, buyers were greeted with some truly terrible models, if they were lucky enough to have a model at all — some unveiled just an empty patch of grass, and others found their models appearing partway in the ground.<p>Although the project lead wrote on the Discord that they had "made a horrible mistake" but that they would "completely revamp and redesign" the NFTs, the project appeared to be a cash grab. On the night of the reveal, 1,000&nbsp;ETH ($2.8&nbsp;million) had already been transferred out of the project and split among various addresses. One of the recipients who received 400&nbsp;ETH ($1.1&nbsp;million) immediately went on a shopping spree, buying various big-ticket NFTs with their windfall.</p>

Pixelmon rug pull

Pixelmon raises $70&nbsp;million only to reveal hilariously bad NFTs

Crypto lending firm Vauld, which <a href="https://web3isgoinggreat.com/?id=crypto-lender-vauld-suspends-withdrawals" target="_blank">suspended withdrawals</a> and announced they were considering restructuring on July 4, have disclosed to their creditors a shortfall of around $70&nbsp;million. They explained this was due to mark-to-market losses relating to the declining pricess of Bitcoin, Ether, and Polygon, as well as exposure to the now-collapsed Terra stablecoin UST. They also attributed some of the shortfall to longterm loans that can't be called back for another 3–11 months.<p>Several weeks prior, <a href="https://web3isgoinggreat.com/?id=vauld-lays-off-30-of-workforce-and-slashes-executive-pay" target="_blank">Vauld had cut 30% of staff, slashed executive salaries, and began various other cost-cutting measures</a>.</p><p>Rival firm Nexo has said it is considering acquiring Vauld, though some have expressed skepticism that Nexo is in a position to afford such an acquisition.</p>

"Vauld issues letter to its creditors, disclosing $70 million shortfall"

Vauld deficit revealed

Vauld is short around $70&nbsp;million

The <button class="define-target" id="defi">defi</button> protocol Pando suffered a $20&nbsp;million loss when it was exploited with an <button class="define-target" id="oracle-manipulation">oracle manipulation</button> attack. The protocol suspended several of its projects in response to the hack, and wrote that they hoped to negotiate with the hacker to regain some of the stolen proceeds. Some of the stolen funds were able to be <button class="define-target" id="freezing">locked</button>, although it's not clear if it was the total amount.

"Alert to Pando Community:Hack of Pando Rings"

Pando hack

Pando exploited for $20&nbsp;million

Midas Investments announced suddenly that they would be shutting down their platform, which previously enabled users to deposit cryptocurrencies which would then be invested in various <button class="define-target" id="defi">defi</button> projects. The team revealed that they had only $51.7&nbsp;million in assets compared to $115&nbsp;million in liabilities, a fact they had not disclosed to most of their employees.<p>Users with assets on the platform will see a significant haircut in what they are allowed to withdraw. Midas intends to keep 55% of the Bitcoin, ETH, or stablecoins held by users in their accounts, as well as any rewards users had earned.</p><p>Lest the users be too upset that more than half of their assets no longer belong to them, fear not: Midas will be making up the difference in a new, valueless token that does not yet exist, but that will be associated with some future project that Midas has not described yet. You're welcome!</p><p>They've also announced they will be pivoting to "CeDeFi". Yes, that is indeed short for "centralized decentralized finance". No, I am not joking.</p>

"Midas Closure: Reasons and Pivot to CedeFi"

Midas Investments collapse

Midas Investments platform closes after revealing they're $63.3&nbsp;million in the hole

A hacker was able to exploit an infinite mint glitch in the protocol of Cashio, a Solana <button class="define-target" id="stablecoin">stablecoin</button> project. They were able to pull around $50&nbsp;million out of the platform, while also tanking the value of the $CASH token in the process. The attacker left a note in the input data of their Ethereum transactions that "Account with less 100k have been returned. all other money will be donated to charity."<p>Saber, the providers of the Cashio <button class="define-target" id="liquidity-pool">liquidity pool</button>, published a postmortem of the attack in which they wrote that "We do not have the money to pay back depositors." The hack was the second largest in Solana history, behind the <a href="https://web3isgoinggreat.com/?id=2022-02-02-0">February Wormhole hack</a>. Saber entreated the hacker to return the funds, writing, "accounts with over $100k are often users' life savings on leverage, and many of us will seriously be affected financially after this incident."</p><p>On March 28, the attacker sent a message saying that "the intention was only to take money from those who do not need it, not from those who do", and invited users who had over $100,000 to apply to receive their funds back with "an explanation of the source of this money and why you need it back. more detail is better. money will not be refund to rich american and european that don't need it." Somewhat strangely, Cashio themselves began hosting a website to allow affected users to plead with the hacker to return the money.</p>

"Solana Stablecoin Project Cashio Plummets to Zero After Multi-Million Dollar Hack"

Cashio hack

A Robin Hood-esque attacker steals $52&nbsp;million from Cashio, then returns smaller amounts and pledges to donate the rest to charity

A class action law firm sent a letter to the yield generation project Stablegains, demanding records on customer accounts, marketing and advertising strategies, and communications relating to the Terra stablecoin. Stablegains described itself as aiming to "make it simple and safe for everyone to benefit from advances in financial technology", and promised that "regardless if crypto markets are soaring or crashing, the value of assets under our management remains stable".<p>Unfortunately for their customers, it turned out that Stablegains was heavily invested in the Terra project's Anchor protocol, which collapsed along with the rest of the Terra ecosystem last week. Stablegains' website had stated they primarily generated yields through the asset-backed stablecoin USDC. However, after the collapse of Terra, Stablegains admitted that "All users' holdings are in UST" — which lost over 90% of its value.</p>

"Stablegains Faces Lawsuit After Losing $44M on UST"

Stablegains collapse

Users threaten to sue after yield generation project Stablegains loses $44&nbsp;million in Terra collapse

The FBI's Cyber Division issued a notification about fraudulent cryptocurrency investment apps that are successfully being used to defraud American investors. The scammers typically claim to offer cryptocurrency investment services to their targets, then convince them to download mobile apps that resemble genuine crypto trading apps (sometimes mimicking actual exchanges). The apps typically show the users' accounts increasing in value, but when users try to withdraw funds they find they're unable. Sometimes the apps defraud their victims even further by claiming they need to pay an additional "tax" before they can withdraw.<p>The FBI stated they had identified 244&nbsp;victims, and estimated the total loss associated with these fraudulent apps to be around $42.7&nbsp;million.</p>

"Cyber Criminals Create Fraudulent Cryptocurrency
Investment Applications to Defraud US Investors"

FBI warns of malicious crypto apps

FBI warns of fraudulent crypto apps that have stolen an estimated $42.7&nbsp;million

Bo Shen, a general partner at Fenbushi Capital and an early adopter of cryptocurrencies, tweeted on November 22 that two weeks prior, someone had stolen $42&nbsp;million in cryptocurrencies from his personal wallet. "The stolen assets are personal funds and do not affect on Fenbushi related entities," he wrote.<p>Analysis by the crypto security firm SlowMist attributed the theft to a compromise of Shen's <button class="define-target" id="seed-phrase">seed phrase</button>. Shen had been using the Trust Wallet software, though the theft does not appear to be related to security issues with the wallet software.</p>

Bo Shen wallet compromise

Early crypto investor loses $42&nbsp;million in wallet compromise

IRA Financial, a platform for managing retirement investments, boasts of being "the first self-directed IRA company to allow their clients to invest in cryptocurrencies, such as Bitcoin, directly via a cryptocurrency exchange". Unfortunately, they were probably also the first to have that feature exploited, when an administrator account was apparently compromised and users' funds were transferred out of their connected Gemini accounts. Two days later, IRA Financial publicly acknowledged "suspicious activity that has affected a limited subset of our customers with accounts on the Gemini cryptocurrency exchange". The stolen funds, taken in a mix of Ethereum and Bitcoin, amounted to around $36&nbsp;million.

IRA Financial hack

$36&nbsp;million taken from retirement accounts of IRA Financial customers investing in crypto

The unsecured lending platform Maple Finance published a blog post announcing that they were severing ties with Orthogonal Trading, who had "misrepresented its financial position" for a month. "It is now clear that they have been operating while effectively insolvent, and it will not be possible for them to continue operating a trading business without outside investment," wrote Maple.<p>On December 3, Orthogonal Trading admitted to Maple that they were unable to meet loan repayments. The group was unable to repay a $10&nbsp;million loan due the following day. The group has $36&nbsp;million in liabilities across various loans on Maple's USDC and wETH pools.</p><p>Orthogonal Credit, a sister group to Orthogonal Trading, published a blog post distancing themselves, writing that they were "shocked and dismayed" by Trading's misrepresentation. "We are speechless by the extent of the exposure and liquidity position of Orthogonal Trading’s book of business," they wrote. They attributed the insolvency to FTX exposure.</p>

"Maple Severs All Ties With Orthogonal Trading"

"Maple Finance Severs Ties With Orthogonal Trading, Alleging It Misrepresented Financial Position"

"Statement from the Orthogonal Credit Team — December 5th 2022"

"Orthogonal Trading defaults on $36 million of loans on Maple Finance"

Orthogonal Trading insolvency

Orthogonal Trading is insolvent, defaults on $36&nbsp;million in loans

The <button class="define-target" id="defi">defi</button> lending protocol Scream may have taken the "stable" in "stablecoin" a bit too literally when they hardcoded the prices of the Fantom USD (fUSD) and DEI stablecoins. In the past few weeks we've seen many stablecoins wobble, and when fUSD and DEI followed suit, Scream ended up in trouble. Users were able to take advantage of the inaccurately high price to borrow other stablecoins on the cheap, leaving Scream with $35&nbsp;million in <button class="define-target" id="bad-debt">bad debt</button>. The platform's reserves of other stablecoins were completely drained; meanwhile, Scream users holding fUSD or DEI can't withdraw.

"DeFi lender left with $35 million bad debt after quoting depegged stablecoins at $1"

Scream bad debt

Scream lending protocol racks up $35&nbsp;million in bad debt after hardcoding not-so-stablecoin prices to $1

"[I] was a 20-something-year-old kid" said Aiden Pleterski, when asked why he kept his "investment" scheme going when he knew he couldn't repay his existing customers. Although he once described himself as the "Crypto King" in several articles he paid to have run, Pleterski is now undergoing a bankruptcy process and facing multiple lawsuits, where creditors are trying to first <i>find</i> and then recoup the more than $35&nbsp;million they've collectively entrusted to him.<p>So far, the court has seized two McLarens, two BMWs, and a Lamborghini — only a few cars out of the eleven luxury cars Pleterski owned, plus another four he was renting. Investors have also asked about the $45,000-a-month lakefront mansion he was renting in Ontario, watches, and gold bars, hoping they could be liquidated to repay some of his debts.</p><p>Pleterski had promised investors that he would invest on their behalf, taking 30% of any capital gains, with a goal of achieving 10–20% gains <i>biweekly</i>. He also promised that any loss on the initial investment would be paid back in full. Pleterski had made some money in crypto as a teenager, but according to him, he lost most of the money he was given to invest in late 2021 and early 2022 "in a series of margin calls and bad trades". An investor claims that at one point, he was given pictures and videos of financial statements showing an account with $311&nbsp;million, but when he checked with the company supposedly maintaining the account, they said they had no accounts with that kind of funds. So far, the court and investors alike have struggled to untangle Pleterski's mess — according to him, he was unorganized and didn't track his finances or debts.</p>

"Luxury cars seized from 23-year-old 'Crypto King' as investors try to recoup millions"

"Crypto King" scam

Investors seek to recoup around $35&nbsp;million from Canadian "Crypto King" in his early 20s

Popular cryptocurrency <button class="define-target" id="wallet">wallet</button> provider and trading platform Crypto.com briefly suspended trading after acknowledging there had been "unauthorized activity" in user accounts. The platform restored trading later that day after pushing an update to require their users to re-authenticate their sessions and reset two-factor authentication.<p>Although some users reported funds missing from their wallets, including one investor who reported that $16.3&nbsp;million missing, Crypto.com announced that "All funds are safe". Over the next few days this was revealed to be untrue; as of January 20, the total estimated funds stolen from the platform had reached $30&nbsp;million. Large amounts of stolen funds were quickly laundered through Tornado Cash, a popular crypto <button class="define-target" id="tumbler">mixer</button>.</p>

"Crypto.com Suspends Withdrawals After 'Unauthorized Activity'"

"Crypto.com’s Stolen Ether Being Laundered via Tornado Cash"

Crypto.com hack

At least $34&nbsp;million is stolen from users of Crypto.com

<a href="https://en.wikipedia.org/wiki/Micah_Johnson_(baseball)" target="_blank">Micah Johnson</a>, an artist and former professional baseball player, launched an astronaut-themed NFT project called AkuDreams. The auction was based around a <button class="define-target" id="dutch-auction">Dutch auction</button>, with the added twist that the lowest bid would set the final price for the NFT and all who bidded higher would be refunded.<p>The <button class="define-target" id="smart-contract">contract</button> suffered from several flaws, however. The first allowed an exploiter to stop all refunds and withdrawals from the contract. Luckily for the team, the exploiter was well-intentioned and only intended to highlight the issue; they removed the block shortly after, leaving a message urging the team to have their contracts <button class="define-target" id="audit">audited</button> before release.</p><p>AkuDreams were not so lucky with the second issue. A bug in the code failed to account for users minting multiple NFTs in a single transaction, which made it so that the claimProjectFunds function that would allow the team to withdraw their earnings can never successfully execute. This means that the team can never withdraw the 11,539&nbsp;ETH ($34&nbsp;million) earned from the NFT sales — it is stuck there forever.</p>

AkuDreams bug

AkuDreams NFT project earns $34&nbsp;million that its team will never be able to withdraw

The Brazilian crypto lending platform BlueBenx suddenly shut its doors after announcing they had suffered an "extremely aggressive" hack of 160&nbsp;million&nbsp;BRL (US$32&nbsp;million). However, they shared very little in the way of details, leading investors to question the veracity of their story.<p>All 22,000 customers of BlueBenx suddenly found them unable to withdraw funds from the platform. The platform also reportedly laid off the majority of its employees.</p>

"BlueBenx fires employees, halts funds withdrawal citing $32M hack"

BlueBenx hack or exit scam

Brazilian crypto lender BlueBenx halts customer withdrawals and lays off employees after $32&nbsp;million "hack"

Ichi, a <button class="define-target" id="defi">defi</button> project that allows other projects to create their own <button class="define-target" id="stablecoin">stablecoins</button> suffered cascading liquidations in its Rari pool, leading to a token price crash. Rari is a protocol that allows users earn yields on <button class="define-target" id="liquidity-pool">liquidity pools</button> for various assets. Ichi's liquidity pool on Rari was set up with an extremely high collateral factor (85%) and no supply caps, which allowed borrowers to borrow more $ICHI to use as collateral than actually existed in the liquidity pool, with many borrowing $ICHI to buy more $ICHI. As borrowers did this, the price briefly spiked from the token's early April price of around $70 to $139 before plummeting to below $2.<p>One Rari developer blamed Ichi for the disaster, writing, "Fuse is a permissionless protocol. Pool operators are responsible for following best practices to avoid situations like this one". Rari Capital's official Twitter account also blamed Ichi, stating, "This is a permissionless pool that is owned and operated by Ichi. We hope to see an announcement from Ichi regarding redemption strategies and next steps to make users whole."</p><p>In the FAQ about the incident, Ichi wrote that they had allowed such a high LTV ratio in the pool because they expected "users would make responsible decisions that would benefit the community". There is currently around $30&nbsp;million of <button class="define-target" id="bad-debt">bad debt</button> in the liquidity pool.</p>

"How Ichi Tokens Plunged 90% After Bad Debt Fiasco on Rari"

Ichi cascading liquidations

Ichi token plummets 90% after Rari liquidity pool is emptied

Major crypto exchange Deribit suffered a <button class="define-target" id="hot-wallet">hot wallet</button> compromise that resulted in a $28&nbsp;million theft. The exchange halted withdrawals to perform security checks, but urged that customer funds were safe and that the loss was covered by company reserves.<p>Deribit is also among the primary creditors of failed crypto hedge fund Three Arrows Capital, which defaulted on an $80&nbsp;million loan from the exchange.</p> 

"Deribit claims crypto hedge fund Three Arrows failed to repay $80mn"

Deribit hack

Crypto exchange Deribit hacked for $28&nbsp;million

According to <i>Seoul Economic Daily</i>, the Korean cryptocurrency investment fund Uprise lost 99% of its customer funds when they tried to <button class="define-target" id="short">short</button> Luna during <a href="https://web3isgoinggreat.com/?id=terra-luna-token-drops-in-price-by-98-amidst-ongoing-terrausd-stablecoin-collapse" target="_blank">its collapse in May</a>. Although Luna crashed in price from around $90 to fractions of a cent, brief price spikes were enough to wipe out Uprise's positions. The firm lost 99% of its customers' funds, or ₩26.7&nbsp;billion ($20.5&nbsp;million), as well as an additional ₩3.9&nbsp;billion ($3&nbsp;million) of its own money.<p>The firm advertised its AI-enabled automatic trading strategies, which it said would reduce the risk involved with leveraged crypto trading.</p><p>A spokesperson for Uprise stated, "It is true that damage to customer assets has occurred due to unexpected great volatility in the market."</p>

"Uprise lost 99% of client funds while shorting LUNA during its price crash: SE Daily"

, <i>Seoul Economic Daily</i> (in Korean)

[단독] '카카오·KB 베팅' 코인투자사, 루나로 267억 날렸다

Uprise collapse

Report reveals that crypto investment firm Uprise lost 99% of customer funds trying to short Luna during its collapse

A person was able to use a <button class="define-target" id="flash-loan">flash loan</button> attack to drain the Elephant Money project, crashing the token price to 0 while cashing out 27,416&nbsp;BNB ($11&nbsp;million). Losses to the project were likely higher, including the loss of 30 billion $ELEPHANT tokens (~$10&nbsp;million). The project boasted <button class="define-target" id="audit">audits</button> by both CertiK and Solidity Finance on its website, though CertiK later tweeted that the flaw was with the treasury contract, which was unverified and unaudited.<p>Elephant Money is a <button class="define-target" id="defi">defi</button> project with some questionable promises — its Twitter account advertises that people can "earn 672% APY", and a recent tweet encouraged people to use Elephant Money "as your new bank: Your share of ELEPHANT tokens can be compared to your debit account, except that it also generates you money. Stampede Perpetual Bonds is your retirement fund." Hopefully no one took them up on their suggestion to put their debit account balance or retirement money into the project.</p>

Elephant Money hack

Attacker cashes out more than $11&nbsp;million from Elephant Money in a flash loan attack

Earlier today, <a href="https://web3isgoinggreat.com/?id=terra-blockchain-is-halted-after-token-crash-increases-threat-of-governance-attacks" target="_blank">Terra halted their blockchain</a> after a devastating few days. Subsequently, Chainlink's <button class="define-target" id="oracle">oracle</button> paused the price feed, causing it to fall out of sync with the apparent market price of the token. This enabled multiple attacks on various platforms.<p>$13.5&nbsp;million was fraudulently borrowed from the Venus protocol on BSC. Blizz Finance on Avalanche reported their protocol had been entirely drained, amounting to around $8.3&nbsp;million. Blizz subsequently announced in a post-mortem that "Blizz has no treasury or development fund and a significant portion of the stolen assets belonged to our team. As such we regret to announce the protocol has been paused and we do not intend to resume operations."</p>

"Venus Protocol Official Statement regarding LUNA"

Terra oracle attacks

Unexpected oracle data in the wake of Terra blockchain halt enables multiple attacks on other platforms

Many had written off the Bored Bunny NFT project (and its subsequent spin-off NFT collections) as a <button class="define-target" id="rug-pull">rug pull</button>. After releasing several new NFT collections that appeared to be little more than cash grabs, each less popular than the last, the team behind the project grew increasingly distant until going silent for over a month. Meanwhile, the team had pocketed over $21&nbsp;million, largely thanks to the popularity the project had drummed up through influencer promotions from the likes of Jake Paul and Floyd Mayweather (both of whom, incidentally, are facing <a href="https://web3isgoinggreat.com/?id=2022-02-17-1" target="_blank">separate</a> <a href="https://web3isgoinggreat.com/?id=2022-01-07-1" target="_blank">class-action lawsuits</a> alleging impropriety in their promotions of crypto projects).<p>Suddenly, the project creator resurfaced on March 29, with a tweet claiming that he had been absent for a month because he had been... reading emails. The team then announced they would be handing the project reins over to a community member, though there was no mention of the $21.1&nbsp;million that had already been pocketed by the original team.</p><p>The unexpected return came only days after the U.S. Department of Justice <a href="https://web3isgoinggreat.com/?id=2022-03-24-1" target="_blank">announced charges</a> against two perpetrators of a different NFT rug pull, in which they stated unequivocally that "the same rules apply to an investment in an NFT or a real estate development. You can't solicit funds for a business opportunity, abandon that business and abscond with money investors provided you."</p>

Bored Bunny rug pull

Creator of apparent $21&nbsp;million Bored Bunny rug pull miraculously resurfaces following DOJ action against a different rug pull

Transit Swap is a multi-chain <button class="define-target" id="dex">decentralized exchange</button> aggregator. Users of the project were collectively exploited for approximately $21&nbsp;million when an attacker took advantage of a bug in the project's <button class="define-target" id="smart-contract">smart contract</button> that allows arbitrary external calls. The attacker used this vulnerability to steal tokens that had been approved for swap by Transit Swap users. Amusingly, the hacker lost about $1&nbsp;million of their ill-gotten funds to a <button class="define-target" id="mev">MEV</button> bot that was able to successfully front-run the swap.<p>Multiple cryptocurrency security companies collaborated to investigate the hack shortly after it occurred. Transit Swap announced that "through the joint efforts of the SlowMist security team, the Bitrace security team, the PeckShield security team, the TokenPocket team and the TransitFinance technical team, we now have a lot of valid information such as hacker's IP, email address, and associated on-chain addresses." They subsequently announced that the attacker had returned around 70% of the stolen funds ($14–$15&nbsp;million).</p>

"Cross-chain DEX Aggregator Transit Swap Hacked Analysis"

Transit Swap hack

Transit Swap hacked for $21&nbsp;million, hacker returns large portion

20.8&nbsp;million&nbsp;BUSD, a dollar-pegged stablecoin on BNB Chain, was transferred from Raccoon Network and the Freedom Protocol on July 19. Security firm PeckShield identified the incident as a scam perpetrated by the people running the projects, although Raccoon Network has tried to claim the transfers were the result of a hack.<p>Raccoon Network is a <button class="define-target" id="metaverse">metaverse</button> project. Freedom Protocol invested in the project in late June, and announced they would be working together. Freedom Protocol is a <button class="define-target" id="defi">defi</button> project that advertises an 183,394.2% <button class="define-target" id="apy">APY</button> "compounded by scientific calculations".</p>

Raccoon Network and Freedom Protocol rug pull

$20&nbsp;million taken from Raccoon Network and Freedom Protocol in likely rug pull

As the Ethereum scaling project Optimism worked to create the $OP token, a token they launched in a move towards decentralizing the project's governance, they decided to obtain a loan from a third party, Wintermute, to provide initial liquidity, in exchange for 20 million&nbsp;$OP. However, Wintermute mistakenly provided the wrong multi-sig <button class="define-target" id="wallet">wallet</button> address to Optimism, and the 20&nbsp;million tokens were sent to an address that had not yet been created. The teams attempted to deploy the multi-sig wallet address to retrieve the tokens, but another person noticed the blunder and was able to do so first.<p>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&nbsp;million $OP for about $1&nbsp;million USD.</p><p>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 <button class="define-target" id="doxxing">doxxing</button> them and delivering them to the corresponding juridical system".</p><p>Remarkably, the attacker returned 17&nbsp;million of the tokens two days later, keeping 2&nbsp;million as a "<button class="define-target" id="bounty">bounty</button>". Wintermute agreed to reimburse the Optimism Foundation for the remaining 2&nbsp;million $OP.</p>

"A Message to the Community from the Optimism Foundation"

"Message to Optimism community from Wintermute"

"Optimism Attacker Returns 17M Stolen OP Tokens"

Optimism tokens sent to wrong address

20 million Optimism tokens sent to nonexistent address, someone else snags them before they can be recovered

Helium has two different tokens: HNT, which is paid out to people who run Helium hotspots, and MOBILE, which is paid to those maintaining the new Helium 5G network. However, Binance erroneously treated both tokens as HNT within their exchange. As a result, anyone who sent MOBILE to Binance wound up with that same number of HNT tokens in their wallet — a big benefit, given that HTN has traded between $4 and $7 this past month, and MOBILE is not yet easily tradable.<p>Binance distributed around 4.8&nbsp;million&nbsp;HNT before discovering and patching the bug, valued at around $19&nbsp;million.</p>

"Binance Bungles Accounting for Helium Tokens, Overpays Clients Millions"

Binance bug with Helium token

Binance accounting bug involving Helium tokens results in $19&nbsp;million of erroneous payouts

Animoca Brands' subsidiary Lympo, an NFT platform specifically for sports, experienced a breach of several <button class="define-target" id="hot-wallet">hot wallets</button>. This allowed an attacker to pull 165.2&nbsp;LMT tokens from the platform, equivalent to about $18.7&nbsp;million. The tokens were quickly exchanged for Ether on Uniswap and Sushiswap. The hack caused the value of LMT to drop by 92%, to $0.0093.

"Animoca Brands’ Lympo NFT platform hacked for $18.7 million"

Event	Date	Amount More info	Recovered More info
Terra/Luna collapse	May 9, 2022	$40,000,000,000
FTX collapse	November 11, 2022	$8,700,000,000	$7,000,000,000
Three Arrows Capital collapse	June 29, 2022	$3,300,000,000
Celsius collapse	July 13, 2022	~$1,700,000,000 shortfall
BlockFi bankruptcy	November 28, 2022	at least $1,300,000,000 in liabilities
Genesis owes Gemini	December 3, 2022	$900,000,000
Axie Infinity bridge hack	March 29, 2022	$625,000,000
Binance bridge hack	October 6, 2022	$586,000,000	$430,000,000
FTX hack	November 11, 2022	$477,000,000
Voyager Digital bankruptcy	July 6, 2022	~$430,000,000 shortfall
Wormhole bridge hack	February 2, 2022	$320,000,000	$140,000,000
Babel Finance collapse	July 29, 2022	$225,000,000
Hodlnaut collapse	August 16, 2022	around $200,000,000 in liabilities
Nomad bridge hack	August 1, 2022	$190,000,000	$37,000,000
Beanstalk Farms hack	April 17, 2022	$182,000,000
Wintermute hack	September 20, 2022	$160,000,000
Freeway rug pull	October 23, 2022	$160,000,000
Mango Markets exploit	October 11, 2022	$116,777,480	$67,000,000
Maiar exchange hack	June 5, 2022	$113,000,000
Horizon Bridge hack	June 23, 2022	$100,000,000
EmpiresX ponzi scheme	June 30, 2022	$100,000,000
Mirror Protocol vulnerability	May 26, 2022	$88,000,000
Qubit Finance hack	January 27, 2022	$80,000,000
Fei Protocol hack	April 30, 2022	$80,000,000
Pixelmon rug pull	February 25, 2022	$70,000,000
Vauld deficit revealed	July 11, 2022	~$70,000,000 shortfall
Pando hack	November 6, 2022	$70,000,000	$50,000,000
Midas Investments collapse	December 27, 2022	$63,300,000
Cashio hack	March 23, 2022	$52,000,000	$14,070,000
Stablegains collapse	May 19, 2022	$44,000,000
FBI warns of malicious crypto apps	July 18, 2022	$42,700,000
Bo Shen wallet compromise	November 10, 2022	$42,000,000
IRA Financial hack	February 8, 2022	$36,000,000
Orthogonal Trading insolvency	December 5, 2022	at least $36,000,000
Scream bad debt	May 16, 2022	$35,000,000
"Crypto King" scam	September 20, 2022	$35,000,000
Crypto.com hack	January 17, 2022	$34,000,000
AkuDreams bug	April 22, 2022	$34,000,000
BlueBenx hack or exit scam	August 14, 2022	$32,000,000
Ichi cascading liquidations	April 11, 2022	$30,000,000
Deribit hack	November 1, 2022	$28,000,000
Uprise collapse	July 6, 2022	$23,500,000
Elephant Money hack	April 12, 2022	$22,000,000
Terra oracle attacks	May 12, 2022	$21,800,000
Bored Bunny rug pull	March 29, 2022	$21,100,000
Transit Swap hack	October 1, 2022	$21,000,000	$15,000,000
Raccoon Network and Freedom Protocol rug pull	July 19, 2022	$20,816,856
Optimism tokens sent to wrong address	June 8, 2022	$20,000,000	$170,000,000
Binance bug with Helium token	September 16, 2022	$19,000,000
Lympo hack	January 10, 2022	$18,700,000