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Coinbase’s Armstrong, Ripple’s Garlinghouse among familiar crypto execs in U.S. CFTC advisory group

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Coinbase's Armstrong, Ripple's Garlinghouse among familiar crypto execs in U.S. CFTC advisory group

The U.S. Commodity Futures Trading Commission, which is set to be a leading regulator of the crypto markets, has named some of the crypto sector’s most prominent executives as members of its newly established Innovation Advisory Committee, including the CEOs of Coinbase, Ripple, Robinhood and Uniswap Labs.

The 35-member committee will steer the U.S. derivatives regulator on the needs of firms at the center of financial innovation, and to fill some of its number, the agency had repurposed a previous CEO council established at the end of last year before the arrival of CFTC Chairman Mike Selig.

“By bringing together participants from every corner of the marketplace, the IAC will be a major asset for the Commission as we work to modernize our rules and regulations for the innovations of today and tomorrow,” Selig said in a statement.

While the earlier group already included members such as Gemini CEO Tyler Winklevoss, Kraken Co-CEO Arjun Sethi and Polymarket CEO Shayne Coplan, the much larger committee adds several more crypto CEOs and the top executives of FanDuel and DraftKings. Additionally, the advisers will include the leaders of many of the more traditional companies and organizations, such as the chief executives of Nasdaq, CME Group, Cboe Global Markets, Futures Industry Association (FIA) and International Swaps and Derivatives Association (ISDA).

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Other new names among the 35 are Chris Dixon of a16z Crypto, Anatoly Yakovenko of Solana Labs, Peter Mintzberg of Grayscale, Sergey Nazarov of Chainlink Labs and Alana Palmedo of Paradigm. Tom Farley, the CEO of Bullish, CoinDesk’s parent company, is also a member.

Selig recently announced a crypto agenda his agency is pursuing alongside the Securities and Exchange Commission, having formally joined with the SEC’s Project Crypto.

The CFTC’s advisory committee is listed below (* denotes earlier council membership):

  • Hayden Adams, CEO, Uniswap Labs
  • Brian Armstrong, CEO, Coinbase
  • Andrej Bolkovic, CEO, Options Clearing Corporation
  • Thomas Chippas, CEO, Rothera Markets
  • Shayne Coplan, CEO, Polymarket *
  • Professor Harry Crane, Representative
  • Chris Dixon, General Partner, a16z Crypto
  • Craig Donohue, CEO, Cboe Global Markets *
  • Terry Duffy, Chair & CEO, CME Group *
  • Tom Farley, CEO, Bullish *
  • Adena Friedman, Chair & CEO, Nasdaq *
  • Brad Garlinghouse, CEO, Ripple
  • Christian Genetski, President, FanDuel
  • Luke Hoersten, CEO, Bitnomial *
  • Frank LaSalla, President & CEO, Depository Trust and Clearing Corporation
  • Walt Lukken, CEO, FIA
  • Tarek Mansour, CEO, Kalshi *
  • Kris Marszalek, CEO, Crypto.‌com *
  • Nathan McCauley, CEO, Anchorage Digital
  • Peter Mintzberg, CEO, Grayscale
  • Sergey Nazarov, CEO, Chainlink Labs
  • Scott D. O’Malia, CEO, ISDA
  • Alana Palmedo, Managing Partner, Paradigm
  • Vivek Raman, CEO, Etherealize
  • Professor Carla Reyes, Representative
  • Jason Robins, CEO, DraftKings
  • David Schwimmer, CEO, LSEG *
  • Arjun Sethi, Co-CEO, Kraken *
  • Peter Smith, CEO, Blockchain.‌com
  • Vance Spencer, Co-founder, Framework Ventures
  • Jeff Sprecher, CEO, Intercontinental Exchange *
  • Vlad Tenev, CEO, Robinhood
  • Don Wilson, CEO, DRW
  • Tyler Winklevoss, CEO, Gemini *
  • Anatoly Yakovenko, CEO, Solana Labs

Read More: CFTC to tap Tyler Winklevoss, other crypto CEOs as first members of innovation panel

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Crypto World

Drift Protocol Warns of Potential Cybersecurity Exploit

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Drift Protocol, a decentralized cryptocurrency exchange (DEX), detected “unusual” trading activity on the platform on Wednesday, warning users not to deposit funds until the issue has been resolved.

The Drift team did not disclose the specific cause of the ongoing incident or the damage in its initial announcement and is currently investigating the issue. 

In a subsequent update, the Drift team announced that deposits and withdrawals on the platform have been suspended. 

Cybercrime, Cybersecurity, Hacks, Decentralized Exchange
Source: Drift Protocol

Blockchain cybersecurity threat researcher Vladimir S said the exploit was likely due to a crypto wallet private key leak, and the total funds lost in the incident could be as high as $200 million. 

“Admin signer was compromised, or whoever controls it intentionally executed these changes,” he said

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The stolen assets include wrapped versions of Bitcoin (BTC), Jito (JTO), the Fartcoin (FRT) memecoin, other altcoins, and various dollar, euro, and Japanese yen stablecoins, which have since been transferred to multiple wallets, according to Vladimir S.

Cybercrime, Cybersecurity, Hacks, Decentralized Exchange
Source: Vladimir S

The exploiter started converting the stolen assets to the USDC (USDC) stablecoin, bridging the funds to the Ethereum network and purchasing Ether (ETH), according to Solana treasury company DeFi Development Corp.

Cointelegraph reached out to Drift Protocol but did not receive an immediate response by the time of publication. 

Cybersecurity exploits and hacks were responsible for $49 million in crypto losses during February, a sharp decrease from January, but a reflection of the ongoing security threats users and platforms face.

Related: Resolv temporarily halts protocol to ‘contain the impact’ of 80M USR exploit

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Drift token impacted by the exploit

The price of the Drift (DRIFT) token briefly reached $0.68 on Wednesday, but fell by about 18% following news of the exploit, according to data from CoinMarketCap.

Cybercrime, Cybersecurity, Hacks, Decentralized Exchange
Drift token falls after news of the exploit. Source: CoinMarketCap

About 83% of the native crypto tokens of hacked platforms never recover to pre-hack prices, according to blockchain security company Immunefi. 

“The stolen funds are only the first layer of damage,” Immunefi CEO Mitchell Amador told Cointelegraph in March.

“What follows is often more destructive: sustained token price suppression, reduced treasury capacity, leadership disruption, lost development time, and erosion of user trust,” he added. 

Magazine: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT: Asia Express

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