Originally published on: September 27, 2024
In the latest developments in the crypto world, the United States Securities and Exchange Commission (SEC) has reached a settlement with operators of Mango Markets. Another significant incident involves the crypto restaking protocol Bedrock extending a job opportunity to a hacker who pilfered $2 million from its uniBTC vaults. Additionally, Tornado Cash developer Roman Storm is gearing up to defend himself in a trial scheduled for December after his motion to dismiss the case against him was denied.
**SEC Settlement with Mango Markets Operators**
The SEC recently settled charges against Mango DAO and Blockworks Foundation for their involvement in the unregistered offering and sale of “MNGO” tokens. This led to the organizations collecting over $70 million for their unregistered entity, attracting investments from US-based investors. As part of the settlement, Mango DAO and Blockworks Foundation agreed to pay a $700K civil penalty to the SEC, eliminate any remaining Mango tokens, and urge markets and token holders in possession of the coins to remove them from circulation.
**Bedrock Hack and Hacker Job Offer**
Bedrock, a crypto liquid restaking protocol, fell victim to a security breach resulting in a loss of $2 million. Rather than taking a legal route, Bedrock made a unique move by offering the hacker a bounty reward and the opportunity to work as a white hat to enhance the protocol’s security. Dedaub, a Web3 security firm, identified a smart contract vulnerability in Bedrock’s uniBTC vaults that could have allowed hackers to pilfer up to $75 million. While the hacker has yet to respond, Bedrock assured the safety of the remaining funds and is committed to resuming staking on uniBTC contracts once the security flaw is addressed.
**Tornado Cash Developer’s Legal Battle**
Roman Storm, the co-founder of Tornado Cash, is preparing to stand trial following a judge’s rejection of his motion to dismiss a case brought by the United States government. Previously charged with conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money-transmitting business, Storm faces a potential maximum sentence of 45 years if found guilty on all counts. Despite Storm’s claim that he is solely being prosecuted for code-writing, the judge emphasized the distinctive nature of Tornado Cash from traditional financial and money-transmitting entities. The trial is scheduled for December 2nd.
Stay tuned for more updates on the crypto landscape as these events unfold.
