Around $8 million worth of Bitcoin could have been seized by the moderators of Blockstream’s Liquid Network as part of a vulnerability that is set to be fixed by Q4 of this year.

The total value of the cryptocurrency locked in the decentralized finance protocol Compound has surpassed $1 billion after growing exponentially over the last few days, thanks to the introduction of its COMP governance token.

Shares of bitcoin mining hardware manufacturer Ebang are now trading on Nasdaq. After sliding in the first few hours of trading they moved back up, even though the firm revealed in its IPO prospectus that it suffered losses from operating activities in the past.

Sponsored: You can buy cryptocurrencies on CryptoCompare’s pages with 0% fees on a limited-time offer. Using Transak’s transparent platform, CryptoCompare users can buy cryptocurrency in a few minutes using a “buy” button available on digital asset pages.

Top stories in the Crypto Roundup today:

• $8 Million in Bitcoin Could have Been Seized on Blockstream’s Liquid, Says Developer
• Total Value Locked in Compound Surpasses $1 Billion
• Shares of Bitcoin Miner Maker Ebang Are Now Trading on Nasdaq
• Sponsored: Buy Cryptocurrencies on CryptoCompare’s Pages With 0% Fees

At the time of writing, bitcoin (BTC) is trading at $9,082.39 (0.30%) with a daily Top Tier volume of $1.49 bn. As for ether (ETH), it is trading at $222.26 (0.36%) with a daily Top Tier volume of $603.55 million. The MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 2,945.04 (0.94%).

$8 Million in Bitcoin Could have Been Seized on Blockstream’s Liquid, Says Developer

The moderators of Blockstream’s Liquid Network were temporarily able to seize 870 BTC stored on it thanks to a vulnerability discovered by Summa founder James Prestwich. Liquid, a network developed and overseen by Blockstream, is meant to move BTC around faster than on the Bitcoin blockchain.

The 870 bitcoins that could have been seized had been stuck in queue since June 11, which according to the bitcoin developer allowed the network’s emergency two-of-three multisig wallet to access the funds for a period of about one hour. The transaction was processed normally, with the network’s 11-of-15 multisig method.

In a private message sent to CoinDesk, Prestwich wrote:

“This was not a normal operation. If anyone says it is, they are wrong. It directly contradicts [Liquid’s] docs and public statements.”

In response, Blockstream Marketing Director Neil Woodfire said this is a “known issue caused by an inconsistency between the timelocks used by Liquid’s functionary [hardware security modules] and the functionaries themselves.” Woodfire added that despite the issue, the “funds are always safe.”

Per Woodfire, the “recent growth in the Liquid Network” and the coronavirus pandemic led to difficulties updating the firmware, but the updates should be implemented by Q4 of this year. Prestwich noted, nevertheless, that “Blockstream’s administrator backdoor activated, and Liquid security became dependent on trusting the company.”

Total Value Locked in Compound Surpasses $1 Billion

The total value in decentralized lending protocol Compound has surpassed the $1 billion mark, according to a tweet published by the company’s CEO, Robert Leshner. In his tweet, he added he is “excited for COMP holders to expand and upgrade Compound.”

The value supplied to the protocol is available for other users to borrow. Most of the funds locked in the platform were in Brave’s Basic Attention Token, Ethereum, or the U.S. dollar-pegged stablecoin USDC. It’s being supplied by 29,300 users.

Around 75.4% of the $369 million being borrowed on Compound are in BAT, with Tether’s USDt representing an additional 9.1%. Next comes the decentralized stablecoin DAI, at 8.1%. There are little over 4,000 borrowers on the platform.

The value locked on Compound has surged after it introduced its governance token COMP. The token is based on the Ethereum blockchain and is distributed to users who interact with the protocol – by either lending or borrowing funds. This has seen some users lend and borrow as much as possible to “farm” COMP tokens, which are currently trading above $230.

Shares of Bitcoin Miner Maker Ebang Are Now Trading on Nasdaq

Shares of the Bitcoin mining hardware manufacturer Ebang are now trading on Nasdaq, and their initial performance was rather poor as their price started sliding.

Ebang, as part of the initial public offering (IPO), is offering 19.3 million shares priced at $5.23 each. The first few hours of trading saw the price of Ebang’s shares drop to a $3.8 low before things started picking back up, with the price ending the day at $5.

The China-based firm filed its IPO prospectus in April, stating in it that it suffered losses and negative cash flows from operating activities, having net losses of $11.8 million and $41.1 million in 2018 and 2019 respectively.

Ebang’s debut in the U.S. stock market comes after another Chinese bitcoin mining hardware manufacturer, Canaan, also went public. Canaan’s shares dropped significantly since they started trading.

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