Crypto Flipsider News Bitcoin Developer Hacked; Cardano Leads Developers; $62 million stolen in December; Lido Tops MakerDAO; Investors sell bankrupt debt

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© Reuters Crypto Flipsider News Hacked Bitcoin Developer; Cardano Leads Developers; $62 million stolen in December; Lido Tops MakerDAO; Investors sell bankrupt debt

To read in the Digest:

First developer Luke Dashjr loses 200 BTC worth $3.6 million in key hack. (ADA) is the top crypto protocol by development activity in 2022. $62 million worth of crypto was stolen in December for the lowest monthly figure in 2022 – Certik. Lido overtakes MakerDAO, becomes DeFi protocol with highest TVL. Investors FTX, Celsius, BlockFi and Voyager Sell Their Bankruptcy Claims at Huge Discounts Leading Bitcoin Developer Luke Dashjr Loses 200 BTC Worth $3.6M in Key Hack

The new year greeted the crypto community with an unfortunate incident. One of Bitcoin’s original core developers, Luke Dashjr, allegedly lost “essentially” his entire BTC stash due to a recent hack on December 31, 2022.

In a January 1 Twitter thread, Dashjr said some hackers compromised his PGP (Pretty Good Privacy) keys and took away 216.93 BTC, worth around $3.6 million, after made four transactions using the Bitcoin mixer CoinJoin.

Crypto-security experts like Blockchain developer Peter Todd have raised several theories behind the compromise. He believes the backdoor software on Dashjr’s desktop led to the compromise. Dashjr allegedly compromised his server on November 17, 2022 and repeated the incident on Christmas Day.

Flipsider: While Binance CEO Changpeng Zhao has promised that Binance will look into the situation, others think the news is fake and it’s Dashjr’s way of avoiding tax. Why You Should Care

The news sparked a debate around self-care. Some argue that users should not directly control their keys, although this is not necessarily dangerous.

Cardano (ADA) is the best crypto protocol by development activity in 2022

Cardano, which prides itself on being a cryptocurrency project with facilities to manage its blockchain network and develop decentralized applications (DApps), led all other blockchains in developments this year.

Santiment, a crypto analytics platform, reported that Cardano had the highest level of development activity in 2022. It outperforms (ETH) and other blockchain protocols in submissions on GitHub.

According to Santiment, Cardano recorded 2,434 commits. was in second place with 2,065 Github commits in 2022, while Cosmos Hub (ATOM), third, recorded 1,622 Github commits.

Development activity of the top 10 blockchains according to this indicator in 2022. Source: Santiment

Large amounts of commits mean that new features are about to ship or developers are confident the protocol will succeed.

Flipsider: According to Santiment, despite dropping 97% from its all-time high, it’s still going strong and one of the most actively developed channels. Why You Should Care

Massive commits on Github often signal an uptrend and could help Cardano navigate the crypto winter.

Certik – $62M in crypto stolen in December for lowest monthly figure in 2022

2022 was the worst year for cryptocurrencies in terms of network breaches, with hackers exploiting multiple protocols every week. However, a report by Certik suggests that the hackers throttled over the holidays.

Certik reports that $62.2 million worth of cryptocurrency was stolen in December – the “lowest monthly figure” of the year. This comes after hackers seized more than $3.7 billion worth of cryptocurrency from January to November.

A breakdown of the report shows that exit scams contributed the most to December losses with $15.5 million. Defrost Finance was recorded as the biggest exit scam, with users losing over $12.9 million from the scheme.

Helio Protocol suffered the biggest losses of the month. On December 2, hackers drained around $15 million in cash from the BNB-based staking platform. This led to the unpecking of its stablecoin HAY.

Flipsider: Overall for 2022, data shows that most crypto hacks targeted cross-blockchain bridges and DeFi protocols. Why You Should Care

The December figure represents an 89.5% decrease in the amount lost to crypto hacks in November, when $595 million worth of crypto was stolen.

Lido overtakes MakerDAO and becomes the DeFi protocol with the highest TVL

Lido Finance Liquid Staking Protocol is now ranked as the best Decentralized Finance (DeFi) protocol. It overtook MakerDAO in Total Value Locked (TVL) as Ethereum (ETH) staking demand surges.

Information from DeFiLlama shows that Lido’s TVL has increased to $5.98 billion, while MakerDAO has a TVL of $5.92 billion. AAVE ranks third, with a TVL of $3.7 billion.

Of the $5.98 billion locked on Lido, $5.94 billion was staked on the Ethereum chain. Meanwhile, $26 million is wagered on Solana, $11.4 million on Moonbeam, and $2.23 million on Moonriver.

A report from blockchain analytics firm Nansen can back up the data. He says staking solutions like Lido Finance have been in high demand since Ethereum’s move to proof-of-stake (PoS).

Flipsider: In November, Lido Finance announced that increased staking has seen the protocol generate $1 million in daily fees since October. Why You Should Care

The Lido’s TVL increase is due to its support for small stakers. This is different from the 32 ETH minimum required to stake directly on the Ethereum network.

FTX, Celsius, BlockFi and Voyager Investors Sell Bankruptcy Claims at Huge Discounts

Uncertainty surrounding the bankruptcy proceedings of FTX, Celsius Network, BlockFi and Voyager prompted some investors to sell their claims for a fraction of face value.

According to data from cryptocurrency debt trading firm Xclaim, more than 100 institutional investors have put their nearly 10,000 claims up for sale even though they may face losses.

9,076 complaints were filed on Celsius Network, 97 on Voyager, 72 on FTX and 24 on BlockFi. In an interview with The Wall Street Journal, Xclaim founder Matt Sedigh said creditors from different parts of the world called his company.

The CEO noted that creditors based in China, Hong Kong and Taiwan held 66.66% of listed claims. Additionally, creditors holding $1 billion with FTX and $100 million with Celsius are reportedly negotiating deals with investment firm Cherokee Acquisition.

Flipsider: Several hedge funds and debt investors like Contrarian Capital, Invictus Global Management and NovaWulf Digital Management have picked up on these claims. Why You Should Care

Celsuis’ decision to file a motion for an extension of the claim deadline is one of the reasons investors have been prompted to start divesting from crypto debt.

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