Decentralized finance (DeFi) enthusiasts have been rocked with news about the United States Department of Justice (DOJ) hot on the trail of DeFi hackers and exploiters. The DOJ’s crypto czar, Eun Young Choi, highlighted the prominence of chain bridges thefts and hacks involving DeFi, emphasizing North Korean state-sponsored hackers’ significant role in exploits. This further legitimized concerns within the DeFi community making it one of the principal focus for the DOJ.
In other developments, the Bancor decentralized autonomous organization (Bancor DAO) faced a class-action lawsuit filed by investors in the United States District Court for the Western District of Texas. The claim alleges that Bancor misled investors regarding its impermanent loss protection mechanism for liquidity providers and was operating as an unregistered security. Additionally, the plaintiffs argue that Bancor DAO attempted to cover the deficit in its product by launching a new product promising competitive returns without risking users’ safety.
Meanwhile, Ethereum un-staking commenced on the Beacon Chain. Bankrupt crypto lender Celsius transferred a staggering $781 million worth of staked Ether from staking service provider Lido as Ether withdrawals opened. This development raised eyebrows, with Celsius swiftly moving its Ether staking tokens from the liquid staking platform Lido just as the service enabled withdrawals.
On a positive note, Coinbase Cloud joined forces with Chainlink Oracle network in a bid to improve its smart contract reliability. As a new node operator on the Chainlink network, Coinbase Cloud will leverage its global infrastructure and blockchain data management experience to enhance the Web3 ecosystem’s decentralization.
Despite these exciting events, the DeFi market did not fare too well in the past week. The total value locked in DeFi protocols dipped below the $50 billion mark, indicating a bearish week for the market. Most tokens within the top 100 by market capitalization experienced a decline in value, leaving the community uneasy.
Though such incidents bring to light some significant issues within the DeFi space, it also signals crucial advancements in blockchain technology. As the DOJ actively pursues DeFi hackers, the space will become more secure, delivering sturdy solutions for its users. Furthermore, the addition of Coinbase Cloud as a node operator within the Chainlink network promises improved decentralization, emphasizing the ever-evolving nature of the DeFi space.
Stay tuned for more insightful stories, news, and analysis about the world of decentralized finance as we continue to keep you informed and educated about this rapidly advancing sector.
Source: Cointelegraph
