The Daily Blurt - January 19

Hacker launders $2.7 Million in stolen Ethereum through Tornado Cash

An Ethereum address connected to an exploit of Raydium, a decentralized exchange built on the Solana blockchain, laundered $2.7 million in ether (ETH) through Tornado Cash, according to security firm CertiK. In December, the hacker was able to withdraw Raydium's liquidity pool (LP) tokens into their control after compromising the admin account keys powering Raydium's smart contracts, resulting in the theft of over $4.4 million in assets. The hacker later moved the stolen funds to Ethereum.

More than a month after the incident, an address labeled by Etherscan as the exploiter of Raydium, transferred $2.7 million in stolen assets to Tornado Cash, a platform known for allowing users to obscure the transaction history. Tornado Cash has been in the spotlight since last year for being sanctioned by the US Treasury Department's Office of Foreign Assets Control (OFAC) due to its potential for money laundering. Following the sanctions, all US-based individuals and entities are prohibited from interacting with the app. Despite the sanctions, Tornado Cash continues to be widely used by hackers of decentralized finance protocols.

National Australia Bank to launch stablecoin AUDN in 2023

National Australia Bank (NAB) is launching a stablecoin called AUDN in 2023, allowing customers to make real-time transactions on blockchain using Australian dollars. The stablecoin, which will be launched on Ethereum and Algorand, can also be used for carbon credit trading, overseas money transfers and repurchase agreements. The stablecoin is fully backed by the Australian dollar and held by NAB. This is the second major Australian bank to launch a stablecoin, following ANZ teaming up with Fireblocks to mint a stablecoin pegged to the Australian dollar. The Australian government is also establishing a framework for the licensing and regulation of crypto service providers in 2023.

Korea's FSC leads the way in tokenized digital asset adoption

The Korean Financial Services Commission (FSC) has announced plans to issue Security Token Offerings (STOs) in response to increasing demand for tokenized digital assets. The FSC is also working to create a systematic structure for the distribution, management, and administration of STOs. This move will allow entities in the brokerage market to enter the STO market, providing additional funds and helping to meet demand in Korea and beyond. Security tokens are digital assets that represent stocks, bonds, and real estate, integrated into cryptocurrencies powered by blockchain technology. This move will help the Korean economy bridge the gap between digital and traditional assets. The FSC plans to create a pilot market using a financial regulatory sandbox and will review the results before releasing them to the public.

1inch's new hardware wallet to compete with Ledger and Trezor

Decentralized exchange aggregator 1inch Network has announced the development of a new hardware wallet that aims to provide a secure device for crypto users to hold their assets. The new hardware wallet will be a physical device that claims to offer a secure way to store users' private keys offline. It will complement 1inch's existing web-based wallet and is set to be released for sale later this year, putting it in competition with larger players in the hardware wallet market such as Ledger and Trezor.

1inch's hardware wallet is in the final stages of development and testing, according to a statement from the company. The wallet will have a 2.7-inch touch display, will be wireless, run on a rechargeable battery, and users will be able to sign transactions wirelessly using QR codes or NFC technology. The move shows 1inch's efforts to diversify its business, as the company aims to expand its ecosystem of products and projects.

Circle CEO expects US Congress to focus on stablecoin regulation

Jeremy Allaire, CEO of Circle, a peer-to-peer payment company, expects the US Congress to focus on stablecoin regulation this year. According to Allaire, stablecoins are the "lowest-hanging fruit" for lawmakers, as they are the most straightforward and foundational aspect of crypto. Circle is the issuer of USD coin (USDC), a stablecoin pegged to the US dollar, and the second-largest stablecoin by market cap. Allaire predicts that stablecoin issuers will be "normalized in almost every major market" this year, as lawmakers become more aware of the significant size and business that stablecoins can provide. He also expects that lawmakers will take a firmer position on stablecoins in different places around the world, led by the G-20 countries and the US. Allaire stated that Circle has been able to evolve and adapt as the crypto ecosystem has grown by working closely with regulators and maintaining a culture of trust and transparency.