Crypto News Headlines (08-Sep-2022)

Canadian cryptocurrency exchange Coinberry has filed a lawsuit against 50 users who collectively withdrew 120 bitcoins following a software error in 2020.

According to a court filing cited by Financial Post, users were able to siphon off the bitcoin with Canadian dollars that had not yet been transferred to their accounts, following a bug with the Interac e-transfer function.

The lawsuit filed by Coinberry, which was acquired by crypto marketplace WonderFi (WNDR) in July, also names Binance, as it was a venue several customers used to distribute their spoils.

Initially over 500 customers exploited the vulnerability, with 23 bitcoins being returned following a request from Coinberry.

“Coinberry contacted all of the said 546 affected registered users by email and demanded return of the misappropriated bitcoins,” the lawsuit read. “Coinberry also immediately contacted Binance.”

The lost funds raises questions over the risks firms take when handling irreversible assets like cryptocurrencies. Last week, a Solana-based DeFi protocol lost $660,000 worth of crypto when it made a programming blunder.

Judge Phyllis J. Hamilton of the U.S. District Court for the Northern District of California has ruled that Apple Inc. is not liable in a class action lawsuit where a fraudulent cryptocurrency wallet app was available for download on the company’s app store, Bloomberg reported Tuesday.

Plaintiff Hadona Diep, a crypto investor, accused Apple of hosting a fraudulent mobile application that mimics Toast Plus, a legit XRP wallet app. The fake app had a similar name and logo to its legitimate counterpart. She filed a class action lawsuit against the Tech giant in Maryland federal court in September last year; the case was transferred to the Northern District of California in December.

The lawsuit explains that in January 2018, the plaintiff downloaded the fake app from the Apple App Store and used it to initiate a transfer of approximately 474 XRP coins from the crypto exchange Bittrex to a Rippex wallet.

As Ethereum’s largest upgrade since the network’s 2015 inception is expected within roughly a week’s time, the price of the industry’s second-largest cryptocurrency has recently been on quite a rollercoaster.

Last month, the cryptocurrency briefly surpassed the psychological $2,000 level, but the momentum didn’t last long, as the asset fell back to within the $1,500 – $1,700 range.

Ethereum, currently trading at about $1,610, surged 6% over the past 24 hours to recover from a sudden—and what seemed to be a rather speculative—dip the day before, when it fell close to $1,500.

A more interesting development, however, is Ethereum’s historical contest against Bitcoin (BTC)—the market’s oldest and largest cryptocurrency by market capitalization.

While the so-called “flippening”—an event in which Ethereum’s market cap eclipses Bitcoin’s—may have not happened as of yet, the price of ETH against BTC has been on quite a decent run since mid-June.

The Vienna-based fintech unicorn Bitpanda is harkening back to the ways of traditional finance (TradFi) through new offerings on its exchange platform.

By adding commodities to its list of available investment options, Bitpanda aims to provide its users to benefit from short-term price fluctuations in more traditional instruments, such as oil, natural gas and wheat.

Bitpanda CEO Eric Demuth told Cointelegraph that due to investor demand, the line between TradFi and decentralized finance (DeFi) is becoming more blurred every year.

“People want to be able to trade multiple asset classes simply, safely and conveniently, and TradFi is catching up to that idea.”

In both financial realms, there are lessons to be learned about what benefits consumers most. TradFi is taking notes from DeFi in terms of accessibility, while DeFi has lessons to learn from traditional financial mechanisms as far as risk mitigation.

“TradFi has focused on expanding its accessibility, and that is driving a convergence. There is still some way to go before [it] can claim to have the same level of usability and accessibility offered by fintechs.”

As the trading volume of LUNC passes $1B, Binance launched Tether trading pair for Terra classic (LUNC).

Binance launched Wallet Maintenance for Terra Classic Network; after the maintenance, the exchange added a new trading pair for LUNC against tether (USDT).

According to Binance:

Binance will open trading for LUNC/USDT trading pair at 2022-09-09 08:00 (UTC).

CCurrenttrading volume of LUNC on Binance is above 1.5B Dollars, such high volume demands that the exchange should add new trading pairs for LUNC, especially against USDT, which is the top stablecoin

As reported by The CryptO Basic, LUNC now ranks 26 by market cap after its market cap surged by 31.78% in the last 24 hours to about $2.9 billion. The market cap has nearly doubled from $1.59 billion on September 2, an 82.39% rise in the previous seven days. Notably, with the move, the asset leapfrogged big-name assets like Bitcoin Cash, Monero, ApeCoin, Tezos, etc., in the market cap rankings. The better positioning results from CoinMarketCap officially updating LUNC ranking and supply.

LUNC is currently trading at 0.00053 above 53% in 24 hours.

Aave Companies, a development lab overseeing crypto lending protocol Aave, is seeking over $16 million from the Aave community to pay for development work on the platform.

Decentralized autonomous organizations (DAOs) like Aave rely on community votes and proposals to determine their path. Decisions are made by token holders, who vote on issues, new developments, growth plans and other issues proposed by their communities.

“We propose that the Aave DAO retribute a total of $16.28M in retroactive funding to Aave Companies for the development of Aave Protocol V3,” Aave Companies wrote in a proposal to the Aave’s governance forum.

While the proposal isn’t scheduled to end until early U.S. hours Thursday, it has already reached quorum, with nearly 100% of votes supporting the funding. Community discussions on the governance forum were generally positive and supported the proposal.

Dunamu Inc., the company that operates the South Korean cryptocurrency exchange Upbit, has been sued by a crypto investor, a man in his 50s, Korea Joongang Daily reported Monday.

The investor alleged that Upbit delayed processing his coin transfer off the exchange prior to the coin crashing, resulting in a monetary loss of 156 million won ($112,477). Upbit is one of the largest crypto exchanges in South Korea.

The lawsuit filed with the Seoul Central District Court last week explains that the investor attempted to transfer 1,310 luna coins (LUNA) on March 24 from his Upbit crypto wallet to a wallet he owns at Binance in order to exchange the coins for Vietnamese dong. On that date, the price of LUNA, now called luna classic (LUNC), was around $92.79 per coin. It crashed to near zero in early May.

Binance notified the investor the following day that his coins had been returned due to a problem with the transfer process. However, the coins were not showing up in his Upbit wallet either. After enquiring, Upbit told him that his coins had been accidentally deposited in Upbit’s own crypto wallet and that their return was held up by account verification procedures as mandated by law.

For a while there, it looked like Circle’s USDC stablecoin was within range to overtake Tether, its biggest competitor.

Starting in June and through the end of July, the gap between the two stablecoins’ market capitalizations hovered around $10 billion. While that’s still a pretty sizable lead, keep in mind that USDT and USDC started the year with $36 billion worth of daylight between them.

But things have shifted dramatically since then. At the time of writing, USDT’s market cap is $68 billion and USDC’s is $52 billion. That means Tether has managed to reclaim $16 billion worth of the gap between it and its rival.

Crypto analytics firm Chainalysis has suggested that the price of Ether (ETH) could decouple from other crypto assets post-Merge, with staking yields potentially driving strong institutional adoption.

In a Wednesday report, Chainalysis explained that the upcoming Ethereum upgrade would introduce institutional investors to staking yields similar to certain instruments such as bonds and commodities while also becoming much more eco-friendly.

The report said ETH staking is expected to offer a 10-15% yield annually for stakers, therefore making ETH an “enticing bond alternative for institutional investors” considering that treasury bonds yields offer much less in comparison

“Ether’s price could decouple from other cryptocurrencies following The Merge, as its staking rewards will make it similar to an instrument like a bond or commodity with a carry premium.”

Ahead of the anticipated Ethereum merge slated between September 13 and 15, players like Aave are stocking up ETH. Some are even borrowing to increase their Ether balance. The DeFi platforms and others worry that user Ether borrowing may increase and leave the protocol prone to liquidity issues. They also worry that the increased borrowing may inject volatility into Lido’s stake market.

To prevent the risks, the Aave community has proposed a temporary suspension of Ether lending before the Ethereum merge.

This is because there are many uncertainties surrounding the upcoming Merge. This proposal was highlighted by Block Analitica.