Here is the outline for the newsletter today🔥

• Another hack in Crypto 👾

• SEC Inaction on Spot Bitcoin ETF a 'Complete and Utter Disaster'🤪

• Celsius is looking to liquidate their altcoins 🤯

Another hack in Crypto 👾

Poly Network fell victim to attackers who issued billions of dollars worth of malicious tokens. However, these ill-gotten gains will likely be of little value to the attackers due to low liquidity and security precautions.

The attackers exploited a smart contract function within Poly Network's bridge tool, which allows users to swap tokens between different blockchains.

By manipulating the bridge, they were able to mint billions of Binance USD (BUSD) and BNB on the Metis blockchain, trillions of Shiba Inu (SHIB) on the Heco blockchain, and millions of other tokens on various networks like Avalanche and Polygon.

This gave them a staggering $42 billion worth of tokens on paper immediately after the attack.

However, the attackers faced significant hurdles in converting these tokens into real value. The lack of liquidity meant that there was no sell liquidity available for the BNB and BUSD tokens. 🤣

Additionally, the METIS tokens issued illicitly were locked on the PolyNetwork bridge by developers. As a result, the attackers were unable to monetize the majority of their token stash.

Nevertheless, the attackers did manage to find liquidity for some of the illicitly-minted tokens. They exchanged 94 billion SHIB tokens for 360 ether (ETH), 495 million COOK tokens for 16 ether, and 15 million RFuel tokens for 27 ether.

These transactions were identified by analytics firm Lookonchain, which observed the hackers transferring assets and ETH to new wallets, likely for the purpose of sale.

It is worth noting that this is not the first time Poly Network has been targeted. In August 2021, the protocol suffered a hack resulting in a loss of $600 million. 

Bridges, like the one exploited in this attack, play a crucial role in enabling the transfer of billions of dollars' worth of tokens across different networks. However, they also present a vulnerable point of attack within the crypto ecosystem.

SEC Inaction on Spot Bitcoin ETF a 'Complete and Utter Disaster'🤪

Cameron Winklevoss, co-founder of Gemini, expressed his frustration with the Securities and Exchange Commission (SEC) for its inaction on spot Bitcoin ETFs.

Winklevoss highlighted the rejection of his decade-old filing for a spot Bitcoin ETF-like trust, emphasizing the agency's failure to approve such investment products over the past ten years.

The Winklevoss twins, early pioneers in the cryptocurrency industry, filed for a spot Bitcoin ETF-like trust in 2013 and made a second attempt in 2018, both of which were ultimately rejected by the SEC.

Although futures-based Bitcoin ETFs have received regulatory approval, the SEC claims that no spot ETF arrangement proposed thus far provides sufficient protection against fraudulent and manipulative practices.

Winklevoss criticized the SEC for its reluctance to approve spot Bitcoin ETFs, stating that it has been a "complete and utter disaster" for U.S. investors.

He argued that the agency's actions have deprived investors of the best investment opportunity of the past decade, effectively keeping them "protected" from exposure to Bitcoin.

The lack of options for spot Bitcoin ETFs has led many U.S. investors to turn to Grayscale's Bitcoin Trust. However, Winklevoss labeled this product as "toxic" and pointed out that converting Grayscale's Bitcoin Trust into an ETF could potentially resolve the discount at which its shares currently trade relative to its Bitcoin holdings.

Grayscale is currently suing the SEC over repeated denials to convert their trust into an ETF.

Winklevoss also criticized SEC Chair Gary Gensler, accusing him of pushing innovation offshore and forcing investors into the arms of unregulated venues. He mentioned FTX, whose former CEO and founder, Sam Bankman-Fried, has faced charges including fraud for his conduct at the collapsed exchange. Winklevoss claimed that investors seeking Bitcoin exposure abroad have been driven to unlicensed and unregulated platforms.

Winklevoss hopes that the SEC will reflect on its past actions and focus on its stated duties rather than overstepping its power. He concluded his statement by praising those who are working to bring spot Bitcoin ETFs to life in the United States.

Celsius is looking to liquidate their altcoins 🤯

Celsius is poised to potentially sell more than $170 million worth of altcoins in a strategic move. This move comes after receiving approval from the judge overseeing its bankruptcy proceedings.

The assets set for sale include Cardano (ADA), Polygon (MATIC), Solana (SOL), and several other altcoins.

So better be wary of holding these assets for the time being.😅

According to court documents from last November, Celsius had sizeable holdings in altcoins, including 90 million MATIC, 103 million ADA, 161,000 SOL, 3.3 million LINK, 1.8 million polkadot (DOT), 200,000 litecoin (LTC), and 106,000 AAVE.

While it remains unclear what Celsius's current positions are in these assets and how much will be excluded from the sale, these holdings were collectively valued at over $170 million at the time of the court documents.

Additionally, Celsius holds millions of dollars in stablecoins and possesses 650 million CEL tokens, its native asset, theoretically worth nearly $100 million. However, it is yet to be determined if Celsius can liquidate its CEL tokens.

Bankruptcy Judge Martin Glenn's approval means Celsius can now begin exiting many of its positions and focus on bitcoin (BTC) and ether (ETH), which will be distributed to creditors who have been patiently waiting for nearly a year to recover their funds.🚀

The ruling states that Celsius is authorized to sell or convert any non-BTC and non-ETH cryptocurrencies, crypto tokens, or other cryptocurrency assets to BTC or ETH commencing on or after July 1, 2023.

This move by Celsius underscores the company's strategic decision to reallocate its holdings towards bitcoin and ether, two of the most prominent and widely recognized cryptocurrencies.

By doing so, Celsius aims to streamline its portfolio and facilitate the distribution of assets to creditors.

Be careful in the altcoin market guys😥

✨Bonus News✨

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.