SEC Regrets Errors Related To Crypto Firm Enforcement Case, Curve Finance To Disburse $49M In Compensation To Hack Victims

Here are some of the major developments from the world of crypto over the past few days
Some of the major developments from the world of crypto
Some of the major developments from the world of crypto

The US Securities and Exchange Commission (SEC) has in a filing on December 21, 2023 in the District Court of Utah admitted that it failed to be “accurate and candid” in earlier court filings claiming software firm Debt Box closed certain bank accounts and planned to relocate to the United Arab Emirates in an alleged attempt to escape the commission’s jurisdiction.

According to the filing, the SEC failed to correct a misrepresentation of facts presented to the court to secure a temporary restraining order to freeze assets, reports Cointelegraph.

“The Commission takes this Court’s concerns seriously and deeply regrets these errors. Agency officials are taking steps to ensure those errors are not repeated in this action or other proceedings,” the SEC said. The SEC, however, added that sanctions were not warranted, as its staff didn’t engage “in any bad faith conduct.”

In a separate declaration, SEC enforcement director Gurbir Grewal apologised on behalf of the commission, acknowledging it had “[fallen] short” of standards to present accurate evidence to the court. He said the enforcement division would have additional training starting in January 2024.

Curve Finance To Disburse $49M In Compensation To Hack Victims

The community behind decentralised finance (DeFi) protocol Curve Finance has voted to reimburse the liquidity providers (LPs) hit by a $61-million hack in July this year. The calculation of losses includes the amount of Ether and CRV tokens in the pools before the hack, along with missed CRV emissions that would have been distributed to LPs over the past months.

“The overall ETH to recover was calculated as 5919.2226 ETH, the CRV to recover was calculated as 34,733,171.51 CRV and the total to distribute was calculated as 55’544’782.73 CRV,” reads the proposal.

Curve’s total value locked (TVL) was nearly $4 billion in July 2023. Among the pools affected were alETH/ETH, pETH/ETH, msETH/ETH and CRV/ETH.

According to Curve’s proposal, the community fund will supply the Curve DAO (CRV) tokens. The final amount also includes a deduction for the tokens recovered since the incident.

The security incident took place on July 30, 2023 exposing several DeFi protocols to a stress test in the following days due to concerns over the exploit’s impact on the crypto ecosystem. The attacker exploited a vulnerability on stable pools using some versions of the Vyper programming language, a popular choice for DeFi protocols due to its design for the Ethereum Virtual Machine. The bug made Vyper’s 0.2.15, 0.2.16 and 0.3.0 versions vulnerable to reentrancy attacks.

Paxos Gets NY Green Light To Join Solana Blockchain

The New York Department of Financial Services (DFS) has approved Stablecoin issuer Paxos’ expansion to the Solana Blockchain. At present, the company has been authorised to issue its Pax Dollar (USDP) Stablecoin only on the Ethereum network due to restrictions imposed by the DFS.

Pax Dollar is a fiat-collateralised Stablecoin, which implies it is backed 1:1 by the United States dollar. The debut of Paxos on Solana is scheduled for January 17, 2024.

Walter Hessert, head of strategy at Paxos, said they received a “non-objection” for the expansion of USDP from Ethereum to Solana after an “extensive and exhaustive review,” adding that Paxos is “the most regulated Stablecoin issuer in the world”. “We are the only company that has been issuing regulated Stablecoins at scale—period,” Hessert further said.

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