Eigenlayer Launches New Token; SEC Probes Ether as Security; Lazarus Group Launders $200M in Crypto
Summary:
Eigenlayer has published a white paper detailing its new token, EIGEN, and announced an airdrop excluding users in certain jurisdictions. Concurrently, the U.S. SEC initiates investigations to probe if Ether (ETH) falls under the category of a security. Meanwhile, North Korean hackers, Lazarus Group, reportedly laundered over $200 million from cryptocurrency heists since 2020.
A brand-new token, EIGEN, developed by the decentralised restaking protocol, Eigenlayer, has been recently detailed in a white paper, and an accompanying airdrop was proclaimed, although users from several nations including the United States and Canada will not be included. Concurrently, fresh legal documentation shows that the U.S. Securities and Exchange Commission (SEC) has begin probes, operating under the conjecture that Ether (ETH) carries the characteristics of a security. In a different vein, North Korean hacker collective, Lazarus Group, has allegedly laundered over $200 million derived from cyber attacks on cryptocurrency since 2020.
The newly launched EIGEN token, and its barred airdrop for US users
Eigenlayer put out a document on April 29, laying out the specifics of their recently formulated token, EIGEN, which caters to applications in need of intersubjective consensus, such as gaming or predicting markets. The token's airdrop will be impermissible in definite jurisdictions, including the U.S. and Canada. Furthermore, during a fork, EIGEN could be segregated from decentralized finance (DeFi) apps, enabling the gauging of social consensus cost, as well as providing recompense to users who part with EIGEN due to errors.
Eigenlayer has set aside 5% of the comprehensive EIGEN supply, intended for consumers who have already committed to restaking ETH via their network, decided by a March 15 snapshot. Additional tokens will be disseminated among contributors of "Season 2", which began after the snapshot was taken, but an end date is yet unconfirmed.
Probable perception of Ether as security by SEC and Gensler
Details surrounding the SEC’s stance on Ether (ETH) were recently unearthed during litigation initiated by Consensys against the SEC, suggesting a possibility that the regulatory organisation viewed the cryptocurrency as a security. Reports from Fox Business state that judicial records indicate that under SEC Chair Gary Gensler, Ether may have been an "unregistered security", failing to comply with federal regulations, for no less than a year.
This insight came to light after Consensys responded with an unedited complaint in a Texas federal court on April 25, following an SEC advance warning of their intent to sue the company. In 2023, on the 28th of March, an official investigation titled the “Ethereum 2.0” was sanctioned by SEC Enforcement Division head Gurbir Grewal to examine the status of Ether and issue any necessary subpoenas connected to its trade. This inquiry was reportedly rooted in the premise that potential unregistered sales of Ether occurred after 2018.
Lazarus Group's illicit laundering over $200M crypto funds since 2020
Over the years 2020 to 2023, an impressive sum exceeding $200 million, sourced from over 25 crypto hacks, was clandestinely laundered by the North Korean government-sponsored Lazarus Group, as divulged by ZachXBT, an on-chain researcher. Starting in 2009, the Lazarus Group has reportedly engaged in extensive cybercriminal activities, accumulating over $3 billion worth of purloined crypto assets in the past six years.
In their operations, the Lazarus Group combined crypto mixing services with peer-to-peer (P2P) exchanges to liquidate the filched digital assets, according to ZachXBT. Further investigation shows that the embezzled funds were first converted into the Tether (USDT) stablecoin before being traded for cash and withdrawn. It appears the group typically depends on traders from China for the conversion from crypto to fiat.
Contributions to this report were made by Geraint Price, Ana Paula Pereira, Sam Bourgi, and Felix Ng.
Published At
4/30/2024 12:08:34 AM
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