Cryptocurrencies are in trouble in early August


August only started 4 days ago, but the cryptocurrency ecosystem is already in trouble with a new Bridge hack, as well as tightening SEC (Securities and Exchange Commission) regulations.

These developments follow an already busy year for the cryptocurrency sector, which has been suffering from a bear market for several months. after inflation and a crisis of confidence in the monetary policy of the US central bank and the ECB.

The SEC charges 11 people in a $ 300 million Forsage case

On Monday, the SEC filed a civil lawsuit against 11 people for allegedly creating and sponsoring a fraudulent Ponzi scheme. This system is called Forsage It is said to be a decentralized smart contract platform running on the Ethereum, Tron and Binance blockchains since its launch in January 2020.

We remind you that smart contracts or smart contracts in French are IT protocols that facilitate, verify and execute the negotiation or execution of a contract, or make a contractual clause unusable (because it is attached to a smart contract).

The SEC says it’s been nearly two years it is a financial arrangement that worked like a ponzi scheme where senior members recruit new members by paying an initial fee in the chain and those who have registered them, and raised over $ 300 million.

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The SEC complaint called Forsage a classic pyramid scheme and a Ponzi scheme that didn’t sell real products or services but was heavily promoted through a series of online ads. Furthermore, the complaint states:

“The main way that investors made money from Forsage was to bring other people into the system.”

Through Caroline Welshhans, head of the SEC’s crypto assets division, the SEC continues:

According to the complaint, Forsage is a widely implemented pyramid scam and aggressively advertised to investors. Scammers cannot circumvent federal laws simply by coordinating their fraud schemes with smart contracts and the blockchain industry. “

Four of the 11 individuals indicted by the Securities and Exchange Commission are founding members of Forsage. Their current whereabouts are unknown, but they are known to have lived at times in Russia, the Republic of Georgia and Indonesia. Moreover, three of the 11 defendants are US residents, The latter are accused of promoting this fraudulent system through social networks.

Hack the Nomad Bridge and Solana’s blockchain in less than 24 hours

The next day, Tuesday 2 August, the starting shot. The nomad who lost nearly $ 200 million due to a security problem that was exploited by a group of hackers.

Nomad is known as a bridge that allows users to transfer tokens from one blockchain to another. At the level of technical detail; Hackers exploited a vulnerability that allowed users to enter arbitrary values ​​into the system and withdraw funds. even when there were not enough assets in Nomad’s storage base.

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Due to the relatively simple nature of this vulnerability, users did not need any programming skills to exploit it. However, more experienced users quickly learned how to use various bots (e.g. programs) to automate the process.

On the same day, a few hours later, Solana’s blockchain was attacked. Nearly 8,000 digital wallets have been emptied, totaling just over $ 5.2 million.

Solana Status’s Twitter account confirmed the attack, noting that as of Wednesday morning the exploit has affected approximately 7,767 wallets.

Since Solana is one of the largest cryptocurrencies after Bitcoin and Ethereum, the attack was devastating. the cost of the latter decreased by about 8% Within the first two hours of the hack’s initial discovery, according to CoinMarketCap. The trading volume has increased by around 105% in the past 24 hours.

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