Deus Finance exploit: Hackers get away with $3M worth of DAI and Ether
Deus Finance provides DeFi infrastructure to help others create financial instruments including synthetic stock trading platforms, options and futures trading.

Multi-token decentralized finance (DeFi) marketplace Deus Finance has become the latest victim of an exploit resulting in over $3 million losses in DAI and Ether (ETH).

DeFi analytic firm PeckShield took to Twitter to explain the cause and manner in which the funds were exploited. The hackers behind the attack managed to exploit and manipulate price oracle for flash loans, resulting in the insolvency of users’ funds.

The hackers manipulated the price from the pair of StableV1 AMM - USDC/DEI, using which the protocol used to set price oracle for its flash loans.

Example of Price Manipulation Source: PeckShield

PeckShield revealed that hackers managed to steal 200,000 DAI and 1101.8 ETH, and the total amount of stolen funds could be larger than the early estimates of $3 million.

The hacker behind the attack then funneled the stolen funds using the coin mixer tool Tornado cash via Multichain protocol (previously known as AnySwap).

Stolen Funds Washed through TornadoCash Source: EtherScan

Related: Altcoin Roundup: DeFi token prices are down, but utility is on the rise

Deus Finance acknowledged the exploit on its lending protocol and claimed it has closed its $DEI lending contract. The DeFi protocol also claimed that both $DEUS and $DEI are unaffected by the exploit.

UK financial watchdog seeks crypto talent amid new crackdown
The Financial Conduct Authority of the United Kingdom is preparing to launch a new crypto department to regulate the industry, looking to hire two senior executives.

The United Kingdom’s Financial Conduct Authority (FCA) is seeking senior executives with cryptocurrency-related expertise as the regulator is preparing to launch a new crypto department to regulate the industry.

According to FCA’s job postings on LinkedIn, the authority is now hunting for a head of the digital assets department and a director of the payments and digital assets department. Both job postings target the crypto savvy.

Published on Monday on LinkedIn, FCA’s head of digital asset job posting targets a candidate who will be accountable for leading the authority’s approach to regulatory operations within the crypto industry across the United Kingdom. The new position is also expected to help the FCA have a “single narrative on crypto,” the posting notes.

The new role is part of FCA’s plan to establish a dedicated department for crypto, the announcement notes, stating that the new position will be crucial for the regulator’s crypto supervision efforts:

“We are looking for a head of department to build and lead a new crypto department that will lead and coordinate the FCA’s regulatory activity in this emerging market. This is a critical leadership role within a proposed new directorate dealing with emerging business models [...]”

The FCA will be accepting applications for this position until April 3, 2022, according to the posting. In another job announcement posted last week, the FCA is also looking for a payments and digital assets department director.

The scope of the role initially includes responsibility for policy and supervision related to payments, e-money and crypto assets as well as other emerging business models across the financial services industry. The position requires experience and knowledge of the relevant regulatory environment, including issues associated with cryptocurrencies and payment firms.

The FCA’s efforts to set up a new dedicated crypto regulation unit comes amid the regulator growing increasingly concerned about the supervision of the cryptocurrency industry recently.

Last week, the FCA issued an order to shut down operators of Bitcoin (BTC) ATMs in the country as part of its efforts to curb money laundering. The authority also reiterated last Friday that all United Kingdom-based financial services firms, including crypto businesses, are expected to ensure compliance with sanctions against Russia.

Bitcoin well positioned to help governments create cheaper CBDCs: Deloitte
According to Deloitte, governments that are first to roll out a nationwide CBDC will have an early-bird advantage in influencing the use of their local currency in international markets and trades.

A new study from financial services giant Deloitte highlighted the potential of Bitcoin (BTC) as a base to create a cheaper, faster and more secure ecosystem for electronic fiat currency or central bank digital currency (CBDC).

Deloitte’s analysis, titled State-Sponsored Cryptocurrency, pointed out the need for a complete redesign of the traditional fiat ecosystem to overcome impending issues of being “slow, error-prone and expensive relative to performance in other high-tech industries.”

However, the report pointed out five key areas where Bitcoin can help traditional fiat currency improve drastically — speed, security, efficiency, cross-border payments and collaboration with other payment participants:

“With the potential to [...] do it without the day-to-day operational need for a centralized organization, whether commercial or federal, the result could truly be transformational.”
Similarities and differences between CBDCs and Bitcoin. Source: Deloitte

While stating the various difference between BTC and state-issued CBDCs, Deloitte’s analysis reiterates one of the major inflationary traits of fiat currency, stating that CBDCs have no cap on money supply contained on the ledger and that centralized governments can define the value of the CBDC.

According to the analysis, governments that are first to roll out a nationwide CBDC will have an early-bird advantage in influencing the use of their local currency in international markets and trades.

In a CBDC environment, Deloitte envisions crypto exchanges to retain their current position as a facilitator that will be used to convert “users’ cryptocurrency to paper currency when transacting across different currencies, and charges an exchange fee in return.” In such a scenario, banks will act as custodians of the distributed ledger who will compete with other miners to process transactions and collect the reward.

This Daily Dose was brought to you by Cointelegraph.

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