Thirdweb Identifies Systemic Bug in Smart Contract Library

Thirdweb Identifies Systemic Bug in Smart Contract Library

Smart contract vulnerability identified by Thirdweb, SEC developments in Bitcoin ETFs and surge in altcoin liquidations impacts crypto traders.

Welcome to the latest issue of Datawallet Daily! Our team has searched through various news sources to curate the most important stories from the last 24 hours.

Thirdweb Identifies Critical Bug in Smart Contract Library

Web3 firm Thirdweb has identified a critical security flaw in a widely used open-source library, potentially affecting hundreds of smart contracts across the Web3 ecosystem. Announced on Dec. 4, the vulnerability affects pre-built contracts such as DropERC20, ERC721, and ERC1155. 

Although there is no evidence of exploitation yet, Thirdweb urges users who deployed contracts before Nov. 22 to take immediate action, offering a grant to cover fees for contract mitigations. They have informed the library’s maintainers and increased security measures, including doubling bug bounty rewards. 

Thirdweb offers tools for gaming, minting, marketplaces, and wallets across multiple blockchains and reports over 70,000 developers using its services.

BlackRock, Bitwise Update SEC Filings for Bitcoin ETFs

BlackRock and Bitwise have amended their filings with the SEC for spot Bitcoin ETFs, signaling ongoing discussions with the regulator. The updates in the filings include new measures for monitoring unusual price movements and enhanced anti-money laundering compliance, along with a PricewaterhouseCoopers audit. 

Bloomberg Intelligence analyst James Seyffart notes these filings result from extensive collaboration between the issuers and the SEC. Concurrently, Bitcoin’s market value has significantly increased, rising by 20.6% in the past month and nearing $42,000, amidst speculation of the SEC’s readiness to approve a spot fund. 

BIGTIME, ORDI Tokens Drive $250M in Altcoin Liquidations

In the last 24 hours, the altcoin futures market experienced significant volatility, leading to over $250 million in liquidations. This figure excludes BTC and ETH futures, which separately saw $85 million in liquidations. 

Notably, Big Time’s BIGTIME and Ordi Protocol’s ORDI tokens were central to these liquidations, with $12 million and $15 million respectively being liquidated from both long and short positions. ORDI’s connection to Bitcoin’s ecosystem and a 580% increase in value last month likely contributed to the demand. Similarly, the crypto gaming narrative boosted BIGTIME, resulting in nearly 400% gains since November. 

Other tokens like Celestia’s TIA and Memeland’s MEME saw around $10 million in liquidations, while Terra ecosystem tokens LUNC, USTC, and LUNA incurred $11 million in losses amid a 70% surge in their prices.

IRS Reports Increase in Crypto Tax Probes

The IRS Criminal Investigation (CI) Unit reported a rise in cryptocurrency tax investigations in its 2023 fiscal year report. Over 2,676 cases were initiated, identifying $37 billion in tax and financial crimes. Investigations primarily focused on unreported income from cryptocurrency transactions, including capital gains, mining, and other income forms like wages. 

The IRS, which has emphasized crypto transaction reporting since 2019, has seen an increase in tax evasion cases involving undisclosed crypto holdings. The CI Unit has seized over $10 billion in digital assets since 2015 and is proposing new regulations to combat crypto-related tax evasion.

Other breaking news

Wrapping up

In today’s summary, Thirdweb has identified a major vulnerability in DropERC20, ERC721, and ERC1155 contracts. If you’ve recently interacted with these types of contracts, consider revoking approvals.

Regarding Bitcoin ETFs, BlackRock and Bitwise are making progress with their SEC filings, a positive sign for ETF approval. The altcoin market is witnessing growth, with BIGTIME and ORDI leading the pack. Additionally, for U.S. residents, remember: the IRS is intensifying scrutiny on unfiled crypto taxes. More updates to come!