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Azuki DAO Exploited for 35 Ethereum (ETH)

Azuki DAO Exploited for 35 Ethereum (ETH)

Azuki DAO faces security breach, Celsius Network set to sell altcoins, Hong Kong advances in Web3. Get all the details.

Hi crypto enthusiasts, welcome to the Datawallet newsletter. We start off our summer edition with the Monday crypto news for all levels of investors. Read on we will cover interesting and relevant information.

Today’s drop will cover these key daily news items:

Azuki DAO exploited

On Monday, a vulnerability in the governance token contract for Azuki DAO was exploited by two hackers, resulting in a loss of 35 ETH. Blockchain analytics company MetaSleuth pointed out that the main cause of the exploit was the 'signatureClaimed' variable in the contract not being properly scrutinized, enabling replay attacks. Consequently, the contract has been suspended.

This exploit comes in the midst of a community poll by Azuki DAO members to engage a legal expert to recover 20,000 ETH from Zagabond, the initiator of the NFT project. To date, 88% of the community has approved this proposal, with 29 million BEAN tokens used to cast votes. 

The community has also accused Zagabond of sabotaging "several projects," without mentioning any in particular. Although the community purports to be "OG Azuki holders" acting for the benefit of the community, the relationship between the DAO and the Azuki project has been questioned by some users.

Celsius granted permission to sell all of its altcoins

The Southern District of New York's U.S. Bankruptcy Court has greenlit a request by Celsius Network to transform its altcoins into Bitcoin and Ethereum. According to the court's direction, starting July 1, Celsius will initiate the sale of altcoins residing in non-custodial creditors' accounts.

Hong Kong establishes Web3 task force

The administration of Hong Kong has set up a committee to encourage the growth of Web3, as revealed in a press statement on Friday. The committee, led by Financial Secretary Paul Chan, consists of 15 unofficial representatives from related industries and crucial government authorities, including financial overseers, are also involved. "The underlying blockchain technology of cryptocurrency is safe, transparent, affordable, and has the capacity to address numerous complex issues in finance, business procedures, and commerce," Chan stated in the press announcement.

BTC sees increased trading activity

The most substantial cryptocurrency globally is demonstrating significant resilience and heightened trading volume throughout the operational hours of the US market, as recent statistics gathered by a couple of industry companies reveal.

Over the previous week, bitcoin (BTC) has been experiencing a 'staircase' pattern of growth, characterized by escalating prices throughout the duration of the US market hours. This trend typically plateaus towards the close of the day, as per the study conducted by K33, a digital assets brokerage firm.

Crypto VC investment drops 70%

According to the crypto data provider, RootData, there has been a significant decrease of over 70% in venture capital funding into cryptocurrency firms in the last year. In June 2022, the digital currency sector drew in $1.81 billion from 149 funding rounds, compared to this year, where only $520 million was funded across 83 projects, marking it as the least funded month so far. 

The figures from RootData clearly indicate a declining trend in the interest of venture capitalists in the digital currency sector, even though there have been some months that saw an upswing.

Other breaking news

Wrapping Up

That’s all for today, folks. VC investment in crypto drops by 70%, but BTC sees increased trading volume. Meanwhile, Celsius is allowed to sell all Altcoins for BTC and ETH. Finally, Azuki DAO exploited. Stay informed and ahead of the game with our daily crypto scoop. See you tomorrow!