John Deaton: XRP Individual Investors Lost Over $15 Billion Due to SEC’s Abuse of Power: John E. Deaton, a prominent pro-crypto lawyer and U.S. Senate candidate in Massachusetts, has publicly criticized the U.S. Securities and Exchange Commission (SEC) for its handling of the Ripple (XRP) case. According to Cointelegraph, Deaton claims that the SEC’s “gross overreach and abuse of power” cost XRP retail investors over $15 billion. His remarks were made in a post on X (formerly Twitter), where he expressed outrage on behalf of the 75,000 XRP holders he represented in the lawsuit.

Key Points from John Deaton‘s Statement

1. $15 Billion in Investor Losses:

• Deaton claims that the SEC’s actions against Ripple (XRP) have resulted in significant financial harm to retail investors, with losses totaling over $15 billion. He believes the SEC’s lawsuit caused unnecessary damage to these investors, many of whom were holding XRP as a long-term investment.

2. SEC’s Alleged Abuse of Power:

• The lawyer accused the SEC of “gross overreach” in its enforcement actions, asserting that the regulatory body has disregarded the law in its pursuit of a legal victory. He highlighted that the SEC has shown little regard for the impact its decisions have had on XRP investors.

3. Personal Advocacy for XRP Holders:

• Deaton noted that he personally represented 627 XRP holders from Massachusetts and contacted the SEC on their behalf, urging the commission to clarify that XRP tokens themselves are not securities. However, Deaton claimed that SEC lawyers refused his request and responded by attacking him personally.

4. Judicial Support:

• In the XRP case, Judge Analisa Torres sided with Deaton’s arguments, ruling that XRP tokens are not securities. Deaton has used this ruling to argue that the SEC’s approach was legally flawed and harmful to investors.

5. Call for Accountability:

• Deaton has called for the SEC to publicly apologize for its actions. If elected to the U.S. Senate, he has pledged to personally apologize to the affected XRP investors. His campaign emphasizes holding the SEC accountable for what he describes as its unjust treatment of retail investors.

Implications for the XRP Case and Regulatory Landscape

1. Investor Sentiment:

• Deaton’s statements highlight the frustrations many XRP holders feel toward the SEC’s actions. Retail investors may view his advocacy as a critical voice in the ongoing debate about cryptocurrency regulation and enforcement.

2. Regulatory Overreach Concerns:

• The allegations of overreach by the SEC echo broader concerns within the crypto community about the need for clearer regulatory guidelines. Deaton’s criticism underscores the tensions between regulators and cryptocurrency projects, which often face ambiguous regulatory standards.

3. Potential Policy Changes:

• If elected to the U.S. Senate, Deaton has vowed to champion the cause of XRP investors and push for reforms in how the SEC handles cryptocurrency-related cases. His advocacy may influence future regulatory decisions and policy discussions regarding digital assets.

Conclusion

John Deaton’s criticism of the SEC and his claims of $15 billion in losses for XRP investors have sparked a new wave of debate about the role of regulators in the cryptocurrency space. As Deaton campaigns for a Senate seat, his stance on holding the SEC accountable and advocating for crypto investors may have a significant impact on the ongoing discussion surrounding cryptocurrency regulations and investor protection.

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TreasureDAO Founder: Migration from Arbitrum to ZK-Sync is a Long-Term Strategy

TreasureDAO, a prominent blockchain gaming platform, recently announced its plans to migrate from Arbitrum (ARB) to ZK-Sync, a decision that co-founder Karel Vuong has framed as part of a broader long-term strategy. According to Vuong, the move is intended to leverage ZK-Sync’s infrastructure to better support the growth and popularity of web3 games.

Key Reasons for the Migration

1. Infrastructure Focused on Web3 Gaming:

• Vuong emphasized that the decision to transition to ZK-Sync was driven by its superior infrastructure for web3 gaming. ZK-Sync offers advantages in several critical areas, including transaction throughput, network size, cost efficiency, user onboarding, and interoperability, all of which are vital for the success of TreasureDAO’s gaming platform.

2. Denial of Ecosystem Grant Motivation:

• Addressing speculation that the migration was driven by the pursuit of an ecosystem grant, Vuong firmly denied this claim. He clarified that the choice to move was based solely on ZK-Sync’s ability to provide the necessary infrastructure for scaling web3 games, rather than any financial incentive.

3. ZK-Sync’s Advanced Technology:

• Vuong highlighted the cutting-edge development work of Matter Labs, the team behind ZK-Sync, which has been advancing zero-knowledge proof (ZKP) technology for nearly six years. He noted that their expertise in ZKP puts ZK-Sync several years ahead of its competitors, making it the ideal environment for TreasureDAO’s growth.

Strategic Importance for TreasureDAO

1. Scaling Web3 Games:

• By choosing ZK-Sync, TreasureDAO aims to tap into a network that offers the scalability and cost-effectiveness needed to onboard more players and developers into the world of blockchain gaming. This is crucial as the demand for high-performance, low-cost web3 gaming platforms increases.

2. Interoperability and Future Growth:

• ZK-Sync’s strong interoperability with other blockchain networks and its ability to handle high transaction volumes efficiently provide TreasureDAO with a solid foundation for long-term growth. This ensures that the platform can evolve and expand its ecosystem without being hindered by scalability issues.

3. Positioning for Web3 Gaming Leadership:

• Vuong’s comments suggest that TreasureDAO’s migration is a forward-thinking move to position the platform as a leader in the web3 gaming space. By partnering with ZK-Sync, TreasureDAO is ensuring it remains at the forefront of technological advancements in blockchain gaming infrastructure.

Conclusion

TreasureDAO’s migration from Arbitrum to ZK-Sync is a strategic move designed to enhance the platform’s capabilities in web3 gaming. As co-founder Karel Vuong explained, ZK-Sync’s superior infrastructure, scalability, and advanced zero-knowledge proof technology make it the ideal network for TreasureDAO’s long-term growth. With this move, TreasureDAO is poised to solidify its position in the expanding web3 gaming industry.

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Cyvers Flags Suspicious Seamless Protocol Transactions on Base Network: Web3 security firm Cyvers has raised alarms over suspicious activity related to Seamless Protocol on the Base network. In a post on X (formerly Twitter), Cyvers reported that a malicious contract was deployed at 11:57 UTC on September 13, followed by an immediate hack. Approximately $130,000 worth of stolen funds were quickly bridged to the Ethereum network and deposited into Tornado Cash, a decentralized crypto tumbler.

Details of the Incident

1. Malicious Contract Detected:

• Cyvers flagged a suspicious contract deployed on the Base network shortly before the hack occurred. The malicious activity began almost immediately after the contract was created, signaling a coordinated attack.

2. Stolen Funds:

• The hacker managed to steal around $130,000 worth of funds. The stolen assets were then quickly bridged to the Ethereum network, where they were deposited into Tornado Cash, a service often used to obscure the origin of funds.

3. Seamless Protocol’s Response:

• Seamless Protocol responded to the incident by assuring users that their funds are safe and the protocol itself was not exploited. In their statement on X, Seamless Protocol emphasized that the breach did not affect their core platform or user assets.

Implications for Web3 Security

1. Vulnerability Concerns:

• The incident highlights the ongoing vulnerability of blockchain networks and decentralized finance (DeFi) platforms to malicious contracts. While Seamless Protocol has stated that user funds were not compromised, the successful bridging of stolen funds to Ethereum raises concerns about network security.

2. Use of Tornado Cash:

• The hacker’s use of Tornado Cash to launder the stolen funds presents challenges for tracking and recovering the assets. Tornado Cash has long been associated with obfuscating illicit transactions, making it harder for authorities to trace stolen funds.

3. Security Protocols:

• This incident emphasizes the importance of robust security protocols and real-time monitoring to detect and mitigate attacks. As Web3 platforms expand, ensuring security at both the contract and network levels is critical to preventing such breaches.

Looking Ahead

1. Investigation and Recovery Efforts:

• As the investigation into the Seamless Protocol incident continues, both Cyvers and other security firms will likely focus on identifying the attacker and tracing the stolen assets. However, the involvement of Tornado Cash complicates these efforts.

2. User Trust and Security Measures:

• Seamless Protocol’s swift assurance that user funds were unaffected is important for maintaining user trust. Going forward, both Seamless Protocol and the broader Base network will need to strengthen their security measures to prevent future attacks.

Conclusion

The flagging of suspicious transactions on Seamless Protocol by Cyvers underscores the persistent challenges facing the security of decentralized platforms. While Seamless Protocol has assured users that funds remain safe, the hacker’s successful extraction of $130,000 through a malicious contract raises questions about vulnerabilities in the DeFi space. As investigations unfold, the crypto community will be watching closely to see how security protocols evolve in response to these incidents.

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