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E10 - Tornado Cash Sanctions, Sable Protocol Unmasked - 8/12/2022
Manage episode 337742582 series 3337136
https://hackmd.io/@idegen/E10-Tornado-Cash-Sanctioned-Saber-Protocol-Unmasked
I, Degen - E10: Tornado Cash Sanctioned, Saber Protocol Unmasked - 8/11/2022
Listen at: idegen.fm
Contact us: @idegenfm
Intro
Welcome to I, Degen - We track down and explore the most exciting crypto hacks, mysteries, exploits, and anything that feeds our crypto curiosity each week. We dig in, cutting through the misinformation and hype in search of a signal in the noise.
Episode Summary
This week we dive into the unprecedented Tornado Cash sanctions, including the arrest of a suspected developer. We also spent some time on the fascinating story of two brothers that operated 11 anon personas to fake a thriving DeFi ecosystem on Solana with the popular Saber protocol.
Weekly Thought
What’s your crypto narrative, and how is it defined/created?
I,Degen - Weekly
- Nomad Bridge Hack Update
- Nomad announces bounty:
- CoinTelegraph reports that 88% of the exploiters were copycats
- Excellent technical breakdown by Coinbase Threat Intel
- Report of a consensus level attack on Ethereum
- Curve.fi DNS hijack results in theft of 570K - some stolen funds frozen on the move though FixedFloat
- Ethereum POS merge scheduled for September 15-16
- Master of Anons: How a Crypto Developer Faked a DeFi Ecosystem from Coindesk
- Ian Macalinao says that Saber and Sunny comprised $7.5 billion of the total Solana TVL of $10.5 billion at their peak. He believes this contributed to SOL’s meteoric rise when the token reached a record high of $188.
- 11 devs all the same person
- protocols built on Saber, used to artificially inflate TVL
- Crypto data website DeFiLlama has changed the way it presents key decentralized finance (DeFi) metric metric in response to this news
I, Degen - Deep Dive Tornado Cash Sanctioned
What: U.S. Treasury Sanctions Notorious Virtual Currency Mixer Tornado Cash
What is TC, and how does it work?
Tornado Cash is a decentralized application launched on the Ethereum blockchain in 2019 that allows someone to un-link the source and destination of coins. That is to say, provide privacy or ‘mix’ coins.
Why sanctions?
Tornado Cash, which has been used to launder more than $7 billion worth of virtual currency since its creation in 2019. - Treasury.govWe should point out that statement is not factually accurate, as not all coins moving through TC were being laundered.
“Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks. Treasury will continue to aggressively pursue actions against mixers that launder virtual currency for criminals and those who assist them.”- Brian E. Nelson - Secretary of the Treasury for Terrorism and Financial Intelligence
Let’s look at a breakdown of funds received by TC from Chainanalysis:
- https://blog.chainalysis.com/reports/tornado-cash-ofac-designation-sanctions/
Points of interest
- 38 Addresses sanctioned
- TC dev arrested in the Netherlands on 8/10.
- first smart contract sanctioned
- Famous accounts dusted by TC coin
- TC Withdrawals increase (but how does increase in WDs == increate in usage?) - Maybe an attempt to get coins out before the platform updates blacklists?
- as with most things crypto, there are lots of uninformed opinions on this one
- TORN (DAO token for TC) down from ~$30 to ~$14
The Resistance
-https://twitter.com/jchervinsky/status/1557804087856570368
The tornado cash opportunity. How we can learn from this attack to prevent it from happening again
I, Degen - Most creative personal hack attempt of the week?
References/Links
TC Feature
22 episodes
Manage episode 337742582 series 3337136
https://hackmd.io/@idegen/E10-Tornado-Cash-Sanctioned-Saber-Protocol-Unmasked
I, Degen - E10: Tornado Cash Sanctioned, Saber Protocol Unmasked - 8/11/2022
Listen at: idegen.fm
Contact us: @idegenfm
Intro
Welcome to I, Degen - We track down and explore the most exciting crypto hacks, mysteries, exploits, and anything that feeds our crypto curiosity each week. We dig in, cutting through the misinformation and hype in search of a signal in the noise.
Episode Summary
This week we dive into the unprecedented Tornado Cash sanctions, including the arrest of a suspected developer. We also spent some time on the fascinating story of two brothers that operated 11 anon personas to fake a thriving DeFi ecosystem on Solana with the popular Saber protocol.
Weekly Thought
What’s your crypto narrative, and how is it defined/created?
I,Degen - Weekly
- Nomad Bridge Hack Update
- Nomad announces bounty:
- CoinTelegraph reports that 88% of the exploiters were copycats
- Excellent technical breakdown by Coinbase Threat Intel
- Report of a consensus level attack on Ethereum
- Curve.fi DNS hijack results in theft of 570K - some stolen funds frozen on the move though FixedFloat
- Ethereum POS merge scheduled for September 15-16
- Master of Anons: How a Crypto Developer Faked a DeFi Ecosystem from Coindesk
- Ian Macalinao says that Saber and Sunny comprised $7.5 billion of the total Solana TVL of $10.5 billion at their peak. He believes this contributed to SOL’s meteoric rise when the token reached a record high of $188.
- 11 devs all the same person
- protocols built on Saber, used to artificially inflate TVL
- Crypto data website DeFiLlama has changed the way it presents key decentralized finance (DeFi) metric metric in response to this news
I, Degen - Deep Dive Tornado Cash Sanctioned
What: U.S. Treasury Sanctions Notorious Virtual Currency Mixer Tornado Cash
What is TC, and how does it work?
Tornado Cash is a decentralized application launched on the Ethereum blockchain in 2019 that allows someone to un-link the source and destination of coins. That is to say, provide privacy or ‘mix’ coins.
Why sanctions?
Tornado Cash, which has been used to launder more than $7 billion worth of virtual currency since its creation in 2019. - Treasury.govWe should point out that statement is not factually accurate, as not all coins moving through TC were being laundered.
“Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks. Treasury will continue to aggressively pursue actions against mixers that launder virtual currency for criminals and those who assist them.”- Brian E. Nelson - Secretary of the Treasury for Terrorism and Financial Intelligence
Let’s look at a breakdown of funds received by TC from Chainanalysis:
- https://blog.chainalysis.com/reports/tornado-cash-ofac-designation-sanctions/
Points of interest
- 38 Addresses sanctioned
- TC dev arrested in the Netherlands on 8/10.
- first smart contract sanctioned
- Famous accounts dusted by TC coin
- TC Withdrawals increase (but how does increase in WDs == increate in usage?) - Maybe an attempt to get coins out before the platform updates blacklists?
- as with most things crypto, there are lots of uninformed opinions on this one
- TORN (DAO token for TC) down from ~$30 to ~$14
The Resistance
-https://twitter.com/jchervinsky/status/1557804087856570368
The tornado cash opportunity. How we can learn from this attack to prevent it from happening again
I, Degen - Most creative personal hack attempt of the week?
References/Links
TC Feature
22 episodes
All episodes
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