Terra Blockchain Resumes After $4M Exploit

The Terra blockchain briefly paused operations on Wednesday following a reentrancy attack. This resulted in over $4 million worth of various tokens being stolen. The network halted at block height 11430400 to implement an emergency patch.

Top crypto news stories for August 1st include Terra blockchain pausing operations after a $4 million exploit, Grayscale launching a mini version of its Bitcoin Trust, Worldcoin expanding its World ID verification to Austria, the Biden administration transferring $2 billion in Bitcoin, and the SEC charging BitClout founder Nader Al-Naji with fraud.

Terra Blockchain Pauses After $4M Exploit, Validators Deploy Emergency Patch

The Terra blockchain paused operations on Wednesday following a reentrancy attack that resulted in the theft of over $4 million worth of various tokens. The network halted at block height 11430400 to implement an emergency patch.

Afterward, validators upgraded their nodes to prevent future exploits, with over 67% voting in favor of the patch. Security firm Beosin reported that the theft included $3.5 million in USDC stablecoin, $500,000 in USDT stablecoin, 2.7 Bitcoin (BTC), and over 60 million Astroport (ASTRO) tokens. The vulnerability exploited in the attack was disclosed in April, targeting the timeout callback of ibc-hooks.

Grayscale Launches Mini Version of Bitcoin Trust, Starts Trading on NYSE Arca

Grayscale Investments launched a mini version of its Bitcoin Trust (GBTC) on July 31, following approval from the U.S. Securities and Exchange Commission (SEC). The new Bitcoin exchange-traded product began trading with the SEC having approved its 19b-4 form last week.

Head of research at Grayscale, Zach Pandl, expressed confidence in the product’s potential, highlighting investor interest in low-cost Bitcoin exposure. The new trust is a spin-off of GBTC, with shares distributed to GBTC shareholders as Grayscale contributes Bitcoin to the trust. Both the mini Bitcoin and Ethereum products now trade on NYSE Arca.

Worldcoin Expands World ID Verification to Austria, Offering ‘Proof of Humanness’

The Worldcoin Foundation has introduced its World ID verification services in Austria, expanding access to its “proof of humanness” technology. The eyeball-scanning orbs are now available in multiple locations in Vienna, allowing anyone over 18 to join the 6.3 million participants who have verified their World ID.

The Worldcoin project distinguishes humans from non-human actors online, assigning World IDs to those who verify their humanity through an iris scan. Participants are rewarded with WLD tokens. Austria marks the latest addition in the European rollout, with Germany having adopted the Worldcoin technology earlier this year.

Biden Administration Transfers $2 Billion in Bitcoin, Part of Funds Seized from Silk Road

The Biden administration recently transferred $2 billion worth of Bitcoin, just days after former President Donald Trump pledged to make the U.S. the “crypto capital of the world” if reelected.

Blockchain analysis platform Arkham Intelligence reported that Bitcoin seized from the Silk Road dark web marketplace was moved to an unknown wallet on July 29, with the amount being split between two addresses holding 10,000 BTC and 19,800 BTC. This division has led to speculation about an over-the-counter (OTC) auction to avoid market disruption.

SEC Charges BitClout Founder Nader Al-Naji with Fraud over Unregistered Security Sales

The SEC and the US Attorney’s Office charged Nader Al-Naji with fraud on July 30, accusing him of selling $257 million in unregistered securities through BitClout’s native token, BTCLT. They alleged that Al-Naji, the founder of BitClout, used $7 million for personal luxury goods and family gifts.

The SEC claimed that Al-Naji leased a Beverly Hills mansion and gave generous cash gifts to family members, using the proceeds from the unregistered sales. They also accused him of misleading investors about BitClout’s operations, presenting it as decentralized while secretly controlling it. Al-Naji allegedly tried to avoid regulatory scrutiny by promoting BitClout as decentralized.