• Crypto developers exposed flaws in Societe Generale euro stablecoin.
• Brazil is investigating Binance for illegal derivatives offerings.
• Fed Governor highlighted the benefits and risks of tokenization and smart contracts.
Crypto Developers Expose Flaws in Societe Generale Euro Stablecoin
Crypto developers have exposed “absolutely horrible” flaws in a euro-pegged stablecoin created by French banking giant Société Générale. The vulnerabilities, which are related to security, privacy, and usability issues, were discovered by researchers from the ChainSecurity audit firm. According to their report, the stablecoin project – dubbed SG-EUR – could cause serious financial losses if exploited.
Brazil Investigating Binance Over Illegal Derivatives Offerings
Brazilian authorities are reportedly investigating cryptocurrency exchange Binance over allegations that it illegally offered derivatives trading services to local investors. The country’s Securities Commission (CVM) is reportedly looking into whether Binance allowed users to trade options and futures on its platform without proper authorization. If found guilty of wrongdoing, Binance could face hefty fines or even be banned from operating in Brazil altogether.
Fed Governor Highlights Benefits, Risks of Tokenization and Smart Contracts
In a recent speech at Princeton University’s Bendheim Center for Finance, Federal Reserve Bank of Boston Governor Lael Brainard highlighted the potential benefits and risks associated with tokenization and smart contracts technology for financial markets. Brainard noted that these technologies may improve capital formation processes as well as reduce counterparty risk among participants within the ecosystem while also presenting challenges such as liquidity risk management and cybersecurity threats.
Trezor Confirms Refusing Coinjoin UTXOs To Protect Privacy Of Others
Hardware wallet manufacturer Trezor has confirmed that it will not allow users to spend coinjoin UTXOs (unspent transaction outputs) in order to protect the privacy of other users participating in such transactions. This decision was made following an internal review conducted by Trezor which concluded that allowing coinjoin UTXO spends would make it easier for those involved in such transactions to be linked together through data analysis techniques like network clustering or blockchain analytics tools.
Dutch Court To Release Tornado Cash Dev Alexey Pertsev Under Surveillance
A Dutch court has ruled that Alexey Pertsev – one of the developers behind privacy-focused cryptocurrency wallet Tornado Cash – must be released under surveillance pending his extradition hearing this summer after being held in pre-trial detention since last November on suspicion of money laundering offenses related to a ransomware attack against Dutch telecom provider KPN back in 2019