Summary of this article
South Korea FSC nominee says crypto lacks real value.
August hacks caused $163 million in stolen funds.
Bunni DEX exploit led to $2.4 million loss.
Lee Eok-won, the nominee for head of South Korea's Financial Services Commission (FSC), has said that cryptocurrencies are worthless. In his written answers submitted before his confirmation hearing, Lee characterised virtual assets as extremely volatile, not usable as money, and supported by nothing concrete.
He also showed concern about using cryptocurrencies in retirement or pension funds. Such funds are meant to provide financial security, but Lee believes that the volatility of crypto makes it unfit for such long-term investment. He also added that digital assets' speculative nature makes it unfit for ensuring stability when one is old.
Speaking on exchange-traded funds based on crypto, Lee said that the commission will look into global practices and seek advice from lawmakers before reaching any conclusion. He suggested that chances as well as possibilities of harm should be thoroughly analysed.
At the same time, Lee appeared more open to stablecoins. He noted that innovation in this area could be made possible if there were strict protections in place. This is part of larger efforts to look into digital currency backed by the local currency.
His comments have, however, been challenged by the local crypto community. According to Cointelegraph, many feel it is incorrect to claim that crypto has no value given its digital utility and the fact that leading companies keep it as part of their financial portfolio attest to its value.
Crypto Hacks rose to $163 Million in August
Hackers stole about $163 million in August, according to data reported by Cointelegraph. This was higher than nearly 15 per cent compared to July's $142 million. Losses were still lower than in the same month previous year when more than $300 million had been taken.
The largest individual loss was due to a social engineering attack against a Bitcoin owner. The hacker tricked the victim into sending 783 BTC valued at some $91 million. Another notable incident was at Turkish exchange BTCTurk, where the hackers accessed hot wallets and stole around $50 million.
There were 16 hacking events in August in total, down from 17 in July. Although the number of events has dropped, the magnitude of losses is up as attackers have focused on larger targets.
The report also added that there has been a tendency for more hacking activity with higher crypto prices. In August, Bitcoin reached an all-time high of $124,000, and Ethereum jumped to over $4,900.
The losses in future could be avoided or reduced using new technology, such as artificial intelligence. Security firms have also warned exchanges and individuals with large holdings of cryptocurrencies to increase their security against such breaches.
Bunni Exploit Leads To $2.4 Million Stablecoin Loss
Decentralised exchange Bunni, which is built on Uniswap v4, was exploited for about $2.4 million in stablecoins. The attackers took advantage of a weakness in Bunni's Liquidity Distribution Function.
The value of money stolen included about $1.33 million in USDC and $1.04 million in USDT. Soon after the attack, Bunni confirmed the incident on X and further stated that all smart contract features on networks had been temporarily suspended as a precaution. Developers also encouraged users to withdraw their money from the platform until further notice.
Bunni's liquidity system works with Euler Finance. However, Euler stated that its own protocol was not affected by the exploit. The Bunni team said it is investigating the issue to determine the full scope of the breach and how the funds were taken.
The scam has sparked debate about the risks behind decentralised finance platforms. The Bunni case is merely the latest in a string of such hacks, which have been leaving massive losses across the industry.
Bunni has yet to mention how it will address the exploit or whether funds can be regained. The investigation is ongoing, and the team has promised to update again.
