DeltaPrime acknowledged the attack on Twitter, and announced that "the risk is contained". They also stated that they were "looking into other ways to reduce user losses to a minimum", including by pulling from the protocol's insurance pool.
$6 million taken from Delta Prime defi protocol
The DeltaPrime defi protocol suffered a $6 million loss after a private key was leaked. Access to the private key allowed the attacker to mint 1.1×1069 DPUSDC, which are tokens that allow holders to redeem the USDC stablecoin at a 1:1 ratio. They repeated the mint with several other deposit receipt tokens for bitcoin, ether, and other cryptocurrencies. Altogether, they redeemed a small fraction of these enormous quantities of deposit receipts, amounting to around $6 million in assets.
Flappy Bird creator disavows crypto spin-off
A blockchain-based version of the 2014 hit game Flappy Bird has emerged, taking advantage of the recent "tap-to-earn" crypto craze. The @flappy_bird Twitter account posted "I AM BACK!!" on September 12, with a video compilation showing people playing the original game. The tweet also claimed they were "working with [Flappy Bird's] predecessor", leading many to believe that the original Flappy Bird creator Dong Nguyen was involved with the project.
Nguyen famously removed the game from app stores shortly after it surged to popularity, stating that he felt guilty that people were becoming addicted to the game. This makes the game's reappearance — complete with loot boxes and other addictive features — feel somewhat dark.
On September 15, Nguyen returned from a seven-year Twitter hiatus to post: "No, I have no related with their game. I did not sell anything. I also don't support crypto."
Although Nguyen held the Flappy Bird trademark, he did not sell it to this group. Instead, they registered the trademark themselves after arguing he had abandoned it.
Eve Online developer angers fans with announcement that their new game will be blockchain-based
CCP, the developer of the Eve Online space MMORPG, has angered their fanbase with a new announcement that their upcoming game will be built on the blockchain and incorporate cryptocurrency for in-game transactions. According to an FAQ, the spin-off game (previously called "Project Awakening" and now titled "Eve Frontier") will use a layer-2 blockchain called Redstone.
"There is still time. You can still roll it back and pretend it never happened. Please. None of us want this crypto slop, this desperate cash grab, this attempt at 'creating something great,' this game where buzzwords seem more important than gameplay," wrote one player on the game's subreddit.
A tweet announcing the game was celebrated by some crypto advocates, but attracted some critical responses from players. One wrote, "releasing a blockchain game a year after the weird hype about that technology died so now you got a shitty concept and don't even get a pay-off for it. let's see how this is going to turn out :)"
eToro settles with SEC for $1.5 million, shuts down most crypto trading
The eToro stock and crypto trading platform settled with the U.S. Securities and Exchange Commission on charges that it was operating an unregistered broker and unregistered clearing agency, and facilitating trading certain crypto assets as securities. The platform agreed to pay $1.5 million in fines. As a part of the settlement, the platform will also restrict crypto trading for its U.S.-based customers to only bitcoin, bitcoin cash, and ether.
- “eToro Reaches Settlement with SEC and Will Cease Trading Activity in Nearly All Crypto Assets”, United States Securities and Exchange Commission [archive]
Adam Neumann's Flowcarbon refunds customers after failing to launch "Goddess Nature Token"
In May 2022, WeWork founder and former CEO Adam Neumann announced he would be launching a company called Flowcarbon, which would issue "tokenized carbon credits" called "Goddess Nature Tokens" and sell them to companies looking to green up their image. The company raised $70 million in funding from Andreessen Horowitz and others, at least half of which was raised through token sales.
Now, Flowcarbon has reportedly been issuing refunds after the tokens have failed to materialize more than two years later. Flowcarbon has reportedly been blaming "market conditions and resistance from carbon registries" for the failure to launch, according to a report from Forbes. Flowcarbon claimed they have been offering refunds "due to industry delays" since 2023.
CryptoPunk sells for a fraction of its likely market price due to zombie smart contract
A rare CryptoPunk NFT recently sold for only 10 ETH (~$25,300), despite a market value that's likely around 600 ETH (~$1.5 million). The sale went through thanks to lingering smart contracts from a defunct NFT fractionalization platform called Niftex, which allowed people to buy and sell "shards" of various NFTs. Niftex launched in November 2020, and is now defunct, with its domain redirecting to the Kraken cryptocurrency exchange.
The platform's smart contracts remain operational, however, and so despite the lack of a frontend website for the platform, the backend still remains. A trader was able to use these smart contracts to trigger a feature that allows a buyout of the fractional shard holders which, if not countered by someone else, automatically goes through in 14 days. The bidder proposed a purchase of 0.001 ETH per share, and without an operational Niftex frontend, no one noticed. The bid went through, and the trader successfully purchased all 10,000 shares — and thus, the NFT — for 10 ETH.
Since then, several people have offered to purchase the NFT for amounts ranging from 100 to 605 ETH. If the new owner were to accept the 605 ETH bid, they would 60x their purchase price.
One owner of a fractionalized share said he thought he had managed to successfully block the sale, but miscalculated. "GG to the new owner", he wrote. He wrote on Twitter, "I don’t consider this a heist. It’s an arb. The smart contract worked as intended. If you want decentralized systems you have to take the good with the bad. It’s part of the game. It’s why we’re here. If you don’t like those rules, you probably shouldn’t be playing."
Hacker steals $1.45 million from CUT token liquidity pool
An attacker exploited a bug in the smart contract for a BSC-based token called CUT, draining a PancakeSwap liquidity pool of almost $1.45 million in the BSC-USD stablecoin.