Explore BitVM's game-changing approach to Bitcoin smart contracts, Ripple CFO's exit amidst SEC woes, and a mysterious $1.6M CrypToadz NFT sale.
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BitVM: Bridging Smart Contracts to the Bitcoin Network

BitVM: Bridging Smart Contracts to the Bitcoin Network

Explore BitVM's game-changing approach to Bitcoin smart contracts, Ripple CFO's exit amidst SEC woes, and a mysterious $1.6M CrypToadz NFT sale.

Date:
Oct 11, 2023
| Issue
#
123

Welcome to today's edition of Datawallet Daily. Here are the standout stories shaping the crypto space over the past 24 hours:

Before we dive into the day's top stories, let's take a quick look at the recent price action.

BitVM: Bridging Ethereum-Style Contracts to Bitcoin Network

Here's some noteworthy news for the Bitcoin community, developer Robin Linus recently unveiled a paper titled “BitVM: Compute Anything on Bitcoin.” In this piece, Linus delves into a novel method of deploying smart contracts on Bitcoin without tweaking its established consensus rules.

Drawing parallels with Ethereum's rollups, BitVM is designed to allow Bitcoin smart contracts to operate off-chain, yet still be authenticated on Bitcoin's main chain. This paves the way for an array of potential applications, from gaming platforms to prediction markets and bridges.

But, and there's always a but. The model requires a significant amount of off-chain computation and communication, signaling that further in-depth research is essential before jumping on the BitVM bandwagon.

In summary, BitVM could herald a promising phase for Bitcoin, possibly influencing its value in future market cycles. As always, time will tell how this innovation fares.

Ripple CFO Kristina Campbell Exits Amid SEC Lawsuit

After riding the rollercoaster of Ripple's tiffs with the SEC, Kristina Campbell, the Chief Financial Officer (CFO) of Ripple Labs is packing her bags for Maven Clinic, a big player in the virtual healthcare scene.

Campbell left in October, noting on her LinkedIn a "memorable" time at the crypto firm. She had previously been CFO at PayNearMe for over four years. Now, she's transitioning to the healthcare sector, eager to apply her experience in a new setting.

As for the Ripple saga, those in the crypto loop might want to mark their calendars. Ripple’s scheduled court date with the SEC is set for April 2024.

A wallet linked to Tornado Cash acquired the CrypToadz NFT for $1.6 Million

In the ever-evolving NFT landscape, a recent CrypToadz sale has garnered significant attention and prompted quite a discussion.

CrypToadz #4030, an NFT typically valued at around $1,000, has been purchased on OpenSea for a staggering $1.6 million. Additionally, the buyer generously covered an extra fee, amounting to nearly $42,000 in ETH, directly to OpenSea.

Crypto Twitter is abuzz with theories. Some believe it could simply be "fat finger mistake". Yet, there are murmurs suggesting potential money laundering. Adding fuel to the speculative fire, the funds for the purchase reportedly originated from a wallet that received a hefty 1,200 ETH (approximately $1.9 million) from Tornado Cash in the previous month.

For context, Tornado Cash has faced scrutiny in the past. The platform is popular among scammers seeking to wash their funds. In August 2023, the US Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash for allegedly laundering crime money.

FTX Risked $1B Loss from Weak Security, Report Claims

In November 2022, FTX got hit hard by hackers and lost almost $400 million in tokens. But it could've been way worse. 

Wired dropped a report hinting that FTX's lax security and unclear business methods could have led to losses in the billions during last year's hack. 

Attackers likely accessed FTX's wallet private keys and began draining funds. After the bankruptcy, few team members knew FTX's exact wallet count or where the keys were, according to Wired.

As the team watched accounts being drained live, Gary Wang, an FTX co-founder now under fraud allegations along with Bankman-Fried, jumped in. Wang quickly sent $500 million to Kumanan Ramanathan's (an advisor to FTX from Alvarez & Marsal) Ledger Nano. This decisive move stemmed the outflow. Later, in a collaborative effort, Wang and Bankman-Fried sent an additional $500 million to BitGo wallets, thwarting further losses.

Other breaking news

Wrapping up

In today's issue, we delved into pivotal developments in Bitcoin, particularly the potential launch of smart contracts, alongside the ongoing challenges at FTX and Ripple. We also covered the $1.6 million CrypToadz sale that links back to the controversial Tornado Cash. Stay tuned as we navigate and update you through our ever-evolving space.