Vitalik Buterin, co-founder of Ethereum, recently proposed a more automated approach to countering 51% attacks on the Ethereum network. During his keynote at the Ethereum Community Conference (EthCC) in Brussels, Buterin emphasized the need for Ethereum to enhance its defenses against such attacks through automation.
A 51% attack occurs when a malicious entity gains majority control of a blockchain’s hashing power, allowing them to alter transactions and disrupt the network. Traditionally, responses to these attacks rely heavily on community consensus to decide on actions like adopting a fork of the blockchain.
Buterin’s proposal involves developing automated software for Ethereum validators. This software would enable nodes to detect censorship and automatically counter censor the majority chain, reducing the need for manual intervention and social consensus. By focusing on automation, Buterin aims to streamline the response process and enhance the network’s resilience against potential attacks.
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Binance Negotiates to Sell Gopax Stake in South Korea
Binance is in the final stages of negotiations to sell a majority stake in the South Korean cryptocurrency exchange Gopax to Megazone, a local cloud service provider. This move will reduce Binance’s stake in Gopax from 72.6% to around 10%.
The sale is driven by regulatory requirements in South Korea, which aim to enhance the governance structure of local exchanges. These regulations include the need for real-name account contracts and stricter oversight of crypto deposits. Binance’s decision to sell its stake is part of its strategy to comply with these new laws and maintain its presence in the South Korean market.
This development marks a significant shift for Binance, which had re-entered the South Korean market in 2023 by acquiring a majority stake in Gopax. The sale is expected to be finalized soon, ensuring that Gopax can continue to operate under the new regulatory framework.
FTX on Jump $264M Trading Claims
The FTX bankruptcy estate is currently disputing a $264 million claim made by Jump Trading’s subsidiary, Tai Mo Shan. This claim revolves around an undelivered loan of 800 million Serum (SRM) tokens from Alameda Research. Jump Trading argues that the failure to deliver these tokens warrants the damages claimed. However, FTX’s lawyers contend that since the loan never commenced, the claim is invalid.
The dispute highlights the complexities of the FTX bankruptcy proceedings and the challenges in resolving claims related to cryptocurrency transactions. The FTX legal team also questions the valuation method used by Jump Trading, describing it as flawed and lacking clear documentation. This case underscores the ongoing legal battles in the aftermath of FTX’s collapse.
Malaysian Crypto Miners Stole $722M Worth of Power
Malaysian authorities have reported that crypto miners in the country have stolen approximately $722 million worth of electricity over the past six years. This massive power theft has been linked to illegal cryptocurrency mining operations, which have been bypassing electricity meters to avoid detection and reduce costs.
The Malaysian Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, highlighted the detrimental impact of these activities on the country’s energy sector and economy. The government has prioritized stopping electricity theft and has implemented various methods to detect unusual energy consumption.
This issue underscores the broader challenges associated with cryptocurrency mining, particularly its high energy consumption and potential for illegal activities. The Malaysian government continues to take stringent measures to curb these practices and promote renewable energy sources.
BitMEX Pleads Quity to Bank Secrecy Violations
BitMEX, a prominent cryptocurrency exchange, has pleaded guilty to violating the Bank Secrecy Act (BSA). This plea comes after the U.S. Department of Justice (DOJ) found that BitMEX failed to establish and maintain an adequate anti-money laundering (AML) program from 2015 to 2020.
The BSA requires financial institutions to implement measures to prevent money laundering and other illicit activities. BitMEX’s failure to comply with these regulations allowed it to be used for large-scale money laundering and sanctions evasion schemes. The company admitted to these violations, highlighting the importance of adhering to U.S. financial laws.
This case underscores the growing scrutiny on cryptocurrency platforms to ensure they follow legal requirements designed to protect the integrity of the financial system.