Here is the top crypto news of the day curated by CoinChapter.com.
Keith Gill’s Bold Bet on GameStop Led GameStop Rally
Keith Gill, the trader widely known as “Roaring Kitty,” has revealed a substantial investment in GameStop (GME). Gill shared a screenshot on Reddit indicating he holds $181.4 million worth of GME stock and call options.
This revelation led GameStop shares to soar over 19% in overnight trading. Gill purchased 5 million GME shares worth $115.7 million and invested an additional $65.7 million in call options. He bet on GameStop’s stock price rising above $20 by June 21.
While Gill’s holdings have gained over $9.3 million, his call options currently show a loss of nearly $2.5 million. Nonetheless, his bold move has already impacted the markets. GameStop’s shares jumped 19.19% to $27.58 in 20 minutes after his Reddit post.
Matter Labs Drops ZK Trademark Attempts
Matter Labs has withdrawn its attempts to obtain intellectual property rights for the term “ZK,” short for “zero-knowledge” proof. The decision comes three days after several prominent ZK researchers condemned Matter Labs’ behavior “in the strongest possible terms,” arguing that ZK technologies should remain a “public good” accessible to all.
In a statement on X, Matter Labs acknowledged the concerns raised by the community and confirmed their decision to drop all trademark applications related to the term “ZK.”
The public letter signed by ZK proponents, including the inventors of ZK-proofs and industry leaders, argued that attempting to trademark a fundamental technology would violate the cryptocurrency industry’s core ethos of decentralization and open access.
Another Crypto News of the Day: DEX Velocore Suffers $7 Million Hack
Decentralized exchange Velocore has fallen victim to a $6.8 million hack through a vulnerability in its smart contracts. In a transparent postmortem, Velocore addressed the incident and offered a 10% white hat bounty to the hacker for the return of the remaining funds.
The hack, which occurred on June 2, exploited an overflow logic flaw in Velocore’s liquidity pool contracts. Hackers then tricked the system to turn a small withdrawal into a large deposit. With the help of a flash loan, the hacker was able to drain Velocore’s “volatile pools” on the zkSync Era and Linea blockchains. However, assets on the Telos network were safeguarded.
In response, Velocore has disabled the logic flaw used in the exploit. The firm reached out to the hacker with a message offering a 10% white hat bounty for the return of the remainder of the funds by June 3, 8:00 UTC. The hacker has yet to respond but has deposited about 1700 ETH, worth approximately $7 million, to cryptocurrency mixer Tornado Cash.
US Navy Launches “PARANOID” Blockchain Security Technology
The United States Navy is inviting private sector partners to collaborate on the development of its proprietary “PARANOID” blockchain technology. This technology is designed to secure software against cyberattacks during development and deployment.
PARANOID is a blockchain-based system that verifies software files across nodes at every step of the development process. Any attempts to edit, replace, or delete code or files would fail verification against the PARANOID system’s blockchain database.
Developed by the Naval Air Warfare Center’s Aircraft Division (NAWCAD) at Lakehurst, New Jersey, PARANOID was initially created to secure avionics software for the U.S. Navy. However, its applicability to any software development endeavor where security is a factor has prompted the Navy to seek private sector partners through a cooperative research and development agreement (CRADA).
Crypto News: Frax Finance X Account Hacked
Frax Finance, a crypto lending platform, fell victim to a concerning social media account hack on X (formerly Twitter). The CEO has raised suspicions of an “inside job” or social engineering within Elon Musk’s company.
According to Frax Finance CEO Sam Kazemian, the platform’s X account was compromised on June 1. No one has tampered with existing passwords or internal issues at Frax Finance itself. Kazemian alleged that the breach could be the result of an insider working at X or social engineering tactics targeting X employees.
To regain control of the account, Kazemian appealed to his followers for assistance in contacting X’s customer service. However, the process of recovering a compromised account can take up to 72 hours. Additionally, Kazemian has advised users to avoid all website links shared from the compromised X accounts until further notice.
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