BTC breaks through $71,000 Gala may lose $200 million due to hacker attack

Headline

▌BTC breaks through $71,000

According to the market, BTC broke through $71,000 and is now at $71,009.12, with a daily increase of 7.18%. The market fluctuates greatly, so please do a good job of risk control.

▌Gala platform suspected of being hacked, which may cause a loss of $200 million

According to market news, the Gala platform is suspected of being hacked, which may cause a loss of up to $200 million. It is reported that hackers are converting 5 billion GALA (about $200 million) tokens stolen or minted into Ethereum. The situation is still under further investigation.

Market

As of press time, according to Coingecko data:

BTC's latest transaction price is $71453.72, with a daily increase or decrease of +7.9%;

ETH's latest transaction price is $3666.03, with a daily increase or decrease of +19.5%;

BNB's latest transaction price is $599.40, with a daily increase or decrease of +4.4%；

SOL's latest transaction price is 186.16 US dollars, with a daily increase or decrease of +9.4%；

DOGE's latest transaction price is 0.1650 US dollars, with a daily increase or decrease of +10.7%；

XPR's latest transaction price is 0.5369 US dollars, with a daily increase or decrease of +5.3%。

Policy

▌U.S. House to Vote on FIT21 Act by Weekend

Republicans on the U.S. House Financial Services Committee announced that the House will vote sometime this week on legislation clarifying the role of financial regulators with respect to digital assets.  

In a May 20 post, U.S. House Republicans said the full House will vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act “this week,” giving the bill a chance to become law. The legislation would clarify how the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) regulate digital assets.  

Since lawmakers passed the FIT21 bill in the House Financial Services Committee in July 2023, the bill has made little progress. In May, committee Chairman Patrick McHenry said the House Rules Committee would likely approve the bill for a full vote in the House.

▌Bloomberg ETF Analyst: 75% approval probability only for 19b-4, and approval of S-1 documents is also required

Bloomberg ETF analyst James Seyffart posted on the X platform, "Brief note, Eric Balchunas raised the probability of spot Ethereum ETF approval to 75%. But this is for the May 23 deadline of 19b-4 (VanEck's deadline). We also need S-1 approval. It may take weeks to months before we see S-1 approval and the actual Ethereum ETF goes live. That being said, if we are correct and we see these theoretical approvals later this week, it should mean that the question of S-1 approval is 'when' rather than 'if'." 

It is reported that the 19b-4 document is a document submitted by an exchange. This type of document is usually related to rule changes for exchange operations, such as introducing new products, modifying trading mechanisms or other related exchange policies. Once submitted, the SEC will review the proposal and publicly solicit public comments before deciding whether to approve it. The S-1 filing is a registration statement that a company must submit before publicly offering its shares. This document discloses in detail key information such as the issuing company's financial status, operating conditions, market environment, preliminary pricing of the stock, and risk factors.

▌The US SEC requires accelerated updates to the 19B-4 filing for spot Ethereum ETFs

The US Securities and Exchange Commission (SEC) has asked exchanges to accelerate updates to the 19B-4 filing for spot Ethereum ETFs, three sources said, indicating that they may approve these applications by Thursday this week. But this does not mean that Ethereum ETFs will be approved, and potential issuers still need to obtain approval of the S-1 application before these products can begin trading. One person familiar with the matter said it may take an indefinite period of time for the SEC to approve the S-1 filing because there is no deadline.

▌The Central Bank of Brazil will formulate stablecoin and cryptocurrency rules this year

The Central Bank of Brazil has announced plans to regulate crypto assets, including stablecoins. This year, it will consider formulating stablecoin rules for payments and foreign exchange, but it described the work as "internal planning." The central bank will launch a second consultation around virtual asset service providers (VASPs), including the rules and authorizations they must follow. In addition, it plans to provide a complementary framework that includes prudential supervision and VASP reporting. The regulatory proposal will be finalized in 2024, with the main goal of protecting investors from fraud and scams. The Brazilian central bank is also keen to ensure that VASPs comply with anti-money laundering (AML) and similar compliance procedures. Prior to this, the central bank had concluded its first consultation in January and explored various cryptocurrency-related topics. These included asset segregation, risk management, cybersecurity and disclosure reflecting the comprehensive nature of the consultation.

▌Rui-Siang Lin arrested in New York for illegal sale of narcotics with cryptocurrency

Rui-Siang Lin, 23, was arrested at New York's Kennedy Airport on Saturday on charges of facilitating the sale of illegal narcotics, including fentanyl, with sales of $100 million through online marketplaces with cryptocurrency.

Blockchain Applications

▌Sei Foundation Proposes Upgrade to Bring EVM Compatibility

The Sei Foundation announced on Monday that it has launched a governance proposal to upgrade the Sei Layer 1 blockchain to version 2. The proposed upgrade, which will be implemented by Sei Labs, will introduce a high-performance, parallelized Ethereum Virtual Machine (EVM) designed to enhance the network's functionality. If the governance proposal is approved, the network upgrade will take place a week later.

▌Stellar Foundation CEO: The cryptocurrency industry is refocusing on the use of its technology stack

Denelle Dixon, CEO of the Stellar Development Foundation, said the cryptocurrency industry is refocusing on the use of its technology stack. Dixon highlighted the potential of blockchain technology to transform financial services in low- and middle-income countries, particularly in Africa and South America. She also spoke about the need for policymakers to create a supportive environment for the industry and the importance of asset issuance and payments in creating fair access to the global financial system.

Cryptocurrency

▌Former Florida Congressman Joins Coinbase Advisory Board

Kendrick Meek, who once served as a representative in the U.S. House of Representatives of Florida, has joined the board of directors of cryptocurrency exchange Coinbase to address digital asset regulation issues. In addition, Stephanie Murphy, Tim Ryan and Pat Toomey are all former U.S. congressmen who are members of the committee to advise Coinbase on regulatory matters.

▌Over the past 24 hours, the entire network contract has exploded by $272 million, mainly short orders

According to coinglass data, the cryptocurrency market has exploded by $272 million in the past 24 hours, with a total of 70,556 people being exploded, including a long order explosion of $70.2039 million and a short order explosion of $202 million. The total amount of BTC liquidation is about 80.5577 million US dollars, and the total amount of ETH liquidation is 90.1775 million US dollars.

▌USDT market value exceeds 111.5 billion US dollars, setting a new record

According to the latest data from Coingecko, the market value of Tether (USDT) has exceeded 111.5 billion US dollars, reaching 111,573,134,308 US dollars at the time of writing, setting a new record, and the transaction volume in the past 24 hours reached 57,831,572,468 US dollars.

Important Economic Dynamics

▌The probability of the Federal Reserve keeping interest rates unchanged in June is 96.4%

According to CME's "Fed Watch", the probability of the Federal Reserve keeping interest rates unchanged in June is 96.4%, and the probability of a 25 basis point rate cut is 3.6%. The probability that the Fed will keep interest rates unchanged by August is 76.4%, the probability of a cumulative 25 basis point rate cut is 22.8%, and the probability of a cumulative 50 basis point rate cut is 0.8%.

▌Federal Reserve Mester: The expectation of three rate cuts this year is no longer appropriate

Cleveland Fed President Mester said on Monday that she believes the Fed's monetary policy is restrictive and that inflation will fall back toward the Fed's 2% target, but not quickly. Mester previously believed that the Fed might cut interest rates three times this year, but "from the economic evolution that I have seen so far, I think that is no longer appropriate," she said. "Given the stagnation of inflation progress in the first quarter, inflation risks have risen, and frankly, the actual situation is stronger than I expected."

▌The three major U.S. stock indexes closed mixed

The three major U.S. stock indexes closed mixed, with the Dow down 0.49%, the Nasdaq up 0.65%, and the S&P 500 up 0.09%. Most of the popular technology stocks rose, and Nvidia rose more than 2%.

▌Federal Reserve Mester: Interest rate hikes may be made under appropriate circumstances

Federal Reserve Mester said that monetary policy is restrictive; the economy in the first quarter was stronger than I expected; restrictive policies have eased the labor market; inflation risks are still tilted to the upside; the latest CPI data is welcome, but still too high; inflation is still believed to fall; interest rates may be raised under appropriate circumstances, but not in the baseline scenario; there is reason to believe that the neutral interest rate is higher than in the past; it is not believed that the expectation of three interest rate cuts in 2024 is still appropriate.

Golden Encyclopedia

▌What is a reentrancy attack in a smart contract?

In a smart contract, a reentrancy attack occurs when a contract calls another contract or function from the outside before completing its own state change. This allows the called contract to reenter the calling contract and potentially execute some of its operations again, which can lead to unforeseen and frequent malicious behavior. For example, contract A calls contract B to send funds and then modifies its own state. Contract B's code may contain a callback function that allows it to reenter contract A and potentially re-execute the transfer function before contract A completes its state change. This would allow an attacker to obtain funds from the contract multiple times before completing the initial transaction.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment concept and be sure to raise risk awareness.