Munchables game successfully recovers $62M in lost funds, while KuCoin faces AML charges and Tether explores AI with privacy focus.
Munchables Game Recovers $62 Million Lost in Hack

Munchables Game Recovers $62 Million Lost in Hack

Munchables game successfully recovers $62M in lost funds, while KuCoin faces AML charges and Tether explores AI with privacy focus.

Last update:
Mar 28, 2024
| Issue

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

Munchables Game Recovers $62 Million Lost in Hack

In a recent cybersecurity incident involving Munchables, an Ethereum-based NFT game, a developer known by the alias “Werewolves0943” and reportedly linked to North Korea, executed a hack that drained over 17,400 ETH ($62.8M) from the platform. Following the hack, a concerted effort by Munchables, along with blockchain investigators like PeckShield and community members led by ZachXBT, culminated in the identification of the hacker as one of the game’s developers. 

Through negotiations, the developer agreed to return the stolen assets without demanding any ransom, relinquishing several private keys essential for reclaiming the stolen funds. Post-recovery, Munchables and Blast, the underlying blockchain, are now focused on redistributing the recovered assets to the affected parties, urging victims to adhere to guidance from official sources to prevent falling for refund scams. 

U.S. Charges KuCoin with Anti-Money Laundering Violations

U.S. federal prosecutors charged crypto exchange KuCoin and its founders with anti-money laundering law violations, alleging failure to register with U.S. entities and lack of a comprehensive anti-money laundering program. Homeland Security highlighted KuCoin’s role in a “multibillion-dollar criminal conspiracy,” facilitating money laundering through inadequate know-your-customer protocols. 

The exchange is accused of indirectly receiving over $3.2 million in cryptocurrency from a sanctioned entity, showcasing its use in laundering criminal proceeds. Following the charges, KuCoin’s native token dropped by 5%. The legal action seeks monetary penalties, trading bans, and forfeiture, emphasizing KuCoin’s significant U.S. user base and its shadow operation in financial markets.

Tether Expands into AI with Focus on Transparency and Privacy

Tether, the company behind the leading stablecoin USDT, is venturing into artificial intelligence, focusing on transparency and privacy. Announcing a commitment to develop open-source, multimodal AI models, Tether aims to enhance the accessibility and efficiency of AI technologies. 

This initiative includes significant investments, such as a $622.6 million stake in Northern Data Group, a firm specializing in AI cloud platforms and data center infrastructure. Amid concerns over Big Tech’s AI monopolization, Tether’s move represents a step towards democratizing AI development. 

Backpack Startup Challenges SEC with Crypto Airdrop Lawsuit

The DeFi Education Fund and Beba, a small Texas-based leather goods retailer, are challenging the SEC in a landmark lawsuit over crypto airdrops, arguing they should not be classified as securities transactions. Beba, known for using airdrops as a loyalty program, seeks clarity amidst the SEC’s intensified crackdown on the crypto industry, which escalated following the FTX collapse. 

The suit accuses the SEC of overreach and failure to provide clear regulations for the crypto sector, particularly criticizing its stance on airdrops. This legal action highlights the ongoing tension between the burgeoning crypto industry and regulatory authorities, aiming to secure a legal footing for innovative digital asset distribution methods.

Other breaking news

  • Badger Unveils eBTC: 0% Interest Bitcoin Lending Protocol
  • 0G Labs Raises $35M for Data Availability Project
  • WAX Blockchain Inks Deal with Amazon Web Services
  • Nyan Heroes Demo Hits Epic Games Store
  • NEAR Introduces Multichain Transaction Feature

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