Today’s Crypto Update: A Recap of Events

Ripple Chairman Chris Larsen Falls Victim to 213 Million XRP Token Hack

On-chain investigator ZachXBT revealed that Ripple chairman Chris Larsen experienced a hack resulting in the loss of 213 million XRP tokens, equivalent to approximately $112.5 million. Confirming the incident, Larsen acknowledged the “unauthorized access” to his personal XRP accounts and assured that prompt action was taken to identify and freeze the affected addresses, with law enforcement already involved. The news briefly caused a dip in XRP’s price, which quickly recovered.

Crypto Space Faces $38.9 Million Losses in Web3 Security Incidents

Quantstamp, a decentralized finance (DeFi) security startup, reported that the Web3 ecosystem encountered various security incidents, including smart contract hacks, key compromises, and scams, leading to total losses of $38.9 million in January 2024. Among the most affected were the top five smart contract protocols: Radiant Capital, Gamma Strategies, Wise Lending, Socket, and Goledo Finance.

Terraform Labs Considers Bankruptcy as Strategy to Counter SEC Lawsuit

Terraform Labs, the entity behind the now-defunct stablecoin TerraClassicUSD (USTC), has filed for Chapter 11 bankruptcy protection as part of its strategy to contest a lawsuit from the United States Securities and Exchange Commission (SEC). Terraform Labs CEO Chris Amani explained that the bankruptcy filing eliminates the need for a “supersedeas bond” and enables the company to appeal the SEC’s enforcement action without such financial obligations. The appeal aims to establish that Terraform Labs’ crypto assets are not securities, challenging the SEC’s jurisdiction. If successful, Amani believes it will significantly reduce the claims against Terraform Labs and benefit creditors. The bankruptcy filing took place on January 21 in a Delaware Bankruptcy Court. In a separate development, the SEC seeks to dismiss a case against the crypto firm Debt Box after potential sanctions for inaccuracies in its case details.

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