gm, readers.
At Automata we work on protecting privacy and fairness. And in this newsletter, we find more reasons to talk about it. Explore headlines and catch up on the biggest crypto news in Web3 privacy.
This week:
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HTX (Huobi) Global hacked for $7.9m, losses covered
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After a $200 million exploit resulting from a breach in its third-party cloud server database, Mixin Network is extending a $20 million bug bounty to return user assets
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CoinEx compromised private key leads to $70m hack
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OpenSea’s third-party security breach leaves API users vulnerable
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Nansen third party security breach compromised, exposing customer data
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OpenAI under scrutiny from Polish authorities over alleged violations of EU General Data Protection Regulation
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Balancer hit by DNS attack on front-end website
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Fhenix, privacy-focused blockchain, raises $7 million
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Coinbase’s Base L2 network rolled out Pessimism, an open-source monitoring system with a focus on ensuring secure withdrawals and identifying security threats
Zooming into ZK:
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25-year-old video shows Bitcoin pioneer Hal Finnery explaining ZK proofs
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Pudgy Penguins debuts toy collection in 2,000 Walmart stores, providing access to Pudgy World, an open-world digital player experience powered by zkSync Era
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Polygon proposes ‘friendly fork’ between Uniswap DAO and Zero Protocol on Polygon zkEVM
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Oasis announced its grant for IllumineX, a multi-chain DEX offering user privacy and protection against front-running by MEV miners
Op-Ed:
- Nym CEO, Harry Halpin says: UK’s Online Safety Bill undermines end-to-end encryption, drive privacy-focused projects and individuals away
We dive into the details, so you don’t have to:
This week, HTX Global fell victim to a significant security breach, resulting in the theft of a staggering $7.9 million worth of Ethereum (ETH). However, HTX acted swiftly and covered the entire loss, totaling $8 million. This rapid response allowed the exchange to restore normal operations without delay. HTX also offered a $400,000 bug bounty to the hacker for returning the stolen funds and extended an invitation for the hacker to join as security white hat advisor.
The debate on regulation continues, with the UK's proposed Online Safety Bill raising privacy concerns, especially regarding end-to-end encryption. Nym CEO, Harry Halpin, emphasized the need for a balance between privacy, cybersecurity, and regulations: Making encryption illegal could lead to individuals and organizations leaving the country, impacting crypto adoption and human rights. Halpin envisions a new generation of privacy-focused apps but acknowledges that governments may take time to understand this shift.
In light of these developments, the ongoing barrage of security threats and the erosion of privacy underline the need for renewed emphasis on these foundational elements of Web3. Oasis has revealed a grant for IllumineX, a multi-chain DEX on Oasis Sapphire. It empowers users to securely move funds and swap tokens across chains using confidential ERC-20 tokens for privacy and MEV attack protection.
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This newsletter is for informational purposes only. It is not intended to be a substitute for professional financial advice or interpreted as investment advice. Cryptocurrencies are volatile assets and you should always do your own research before making any informed decisions when investing or trading.