Bankrupt cryptocurrency lender Celsius Network has filed to return users $50 million worth of cryptocurrency that was on its platform in custody accounts, designed to store assets rather than to generate returns.

Multi-chain decentralized finance (DeFi) protocol Kyber Network has discovered a vulnerability to its website code that allowed attackers to exploit it for approximately $265,000. Kyber Network said it plans to reimburse affected addresses for their losses.

The largest non-fungible token (NFT) marketplace, OpenSea, is planning to exclusively support NFTs on the Proof-of-Stake version of the Ethereum blockchain once The Merge upgrade is complete.

Top stories in the Crypto Roundup today:

• Bankrupt Celsius Files to Return $50 Million to Clients
• DeFi Platform Kyber Network Suffers $265,000 Exploit
• OpenSea to Only Support NFTs on Proof-of-Stake Ethereum Chain
• Crypto Market Movers – CHZ, EOS, ATOM

Bankrupt Celsius Files to Return $50 Million to Clients

Bankrupt cryptocurrency lender Celsius Network has filed to return users $50 million worth of cryptocurrency that was on its platform in custody accounts, designed to store assets rather than to generate returns.

The company has asked a U.S. bankruptcy judge’s permission to release the funds, with a full hearing on the request now set for October 6, according to court documents. The move highlights a difference among the thousands of users affected by the company’s bankruptcy.

According to Celsius, those who deposited crypto to earn interest on their holdings signed over their ownership of the coins to the company, while those who simply stored their assets on the platform technically retained title to the coins.

The $50 million Celsius is looking to return to users is a fraction of the more than $200 million held in custody accounts on its platform, as many users moved their holdings from interest-bearing accounts into custody accounts shortly before the bankruptcy.

Documents show that what’s held in custody accounts is a tiny amount compared to the $4.2 billion users have in interest-bearing accounts as of July 10.

DeFi Platform Kyber Network Suffers $265,000 Exploit

Multi-chain decentralized finance (DeFi) protocol Kyber Network has discovered a vulnerability to its website code that allowed attackers to exploit it for approximately $265,000. Kyber Network said it plans to reimburse affected addresses for their losses.

The protocol’s team discovered the exploit, which let attackers insert a “false approval, allowing a hacker to transfer a user’s funds to his address,” on September 1, and managed to neutralize the threat within two hours.

The problem stemmed from malicious Google Tag Manager code in the KyberSwap website, and affected KyberSwap, a decentralized exchange allowing users to swap between currencies on different blockchains.

KyberSwap’s blockchain contracts weren’t affected.

OpenSea to Only Support NFTs on Proof-of-Stake Ethereum Chain

The largest non-fungible token (NFT) marketplace, OpenSea, is planning to exclusively support NFTs on the Proof-of-Stake version of the Ethereum blockchain once The Merge upgrade is complete.

OpenSea has to date reportedly traded some $31 billion in Ethereum-linked NFTs, with the entirety of the sum being made up by trading NFTs on Ethereum’s Proof-of-Work network. The figure dwarfs volumes seen on NFT markets for other blockchains.

The Ethereum Merge describes the network’s current mainnet merging with the Beacon Chain’s PoS system, setting the stage for future scaling upgrades, including sharding. The move is expected to reduce Ethereum’s energy consumption by 99.95%.

The move away from PoW is said to make the network cheaper, faster, and more environmentally friendly, however, it will also mark the end of an income stream for Ethereum miners who were being rewarded for securing the network.

OpenSea noted it has been preparing to deliver a “smooth transition” to Ethereum as a Proof-of-Stake network, but acknowledged the novel situation will require “monitoring, managing, and commutating throughout.”

Crypto Market Movers – CHZ, EOS, ATOM

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Chiliz (CHZ) - Chiliz is a currency option for blockchain-backed products and services geared towards mainstream consumers. Aiming to elevate everyday experiences – fan engagement in entertainment, alternative payment solutions for conventional products, and more.

EOS (EOS) - EOS.IO is software that introduces a blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications (the “EOS.IO Software”). This is achieved through an operating system-like construct upon which applications can be built. The software provides accounts, authentication, databases, asynchronous communication and the scheduling of applications across multiple CPU cores and/or clusters.

Cosmos (ATOM) - Cosmos is a network of many independent blockchains, called zones. The zones are powered by Tendermint Core, which provides a high-performance, consistent, secure PBFT-like consensus engine, where strict fork-accountability guarantees hold over the behaviour of malicious actors. Tendermint Core’s BFT consensus algorithm is well suited for scaling public proof-of-stake blockchains.

State of the Crypto by Top Tier Exchange Volume

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