E16: Reversible Transactions - 10/1/2022

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Intro

Welcome to I, Degen - A podcast about crypto technology, security, and culture. With a healthy balance of enthusiasm and skepticism, we dig into a weekly look at crypto, cutting through the misinformation and hype in search of signal in the noise.

Episode Summary

This week we discuss the draft of the US House’s Stablecoin bill. CFTC’s 250k fine for BzX & the Ooki DAO. We talk about the 0xBAD MEV bot getting owned, and we dig into the recent paper on reversible ERC20 and ERC721 transactions.

I, Degen - Weekly

1. 9/20/2022 - From CryptoBreifing - US House proposes stablecoin bill that would put a two-year ban on algorithmic stable coins

• U.S. lawmakers are reportedly drafting a bill to place a two-year ban on certain stablecoins.
• The House Stablecoin Bill would target “endogenously collateralized stablecoins.”
• The bill would allow both banks and non-banks to issue stablecoins. However, bank issuers would need approval from federal regulators such as the OCC. As for non-bank issuers, the legislation directs the Federal Reserve to establish a process for making application decisions.
• The House Stablecoin Bill would make it illegal to issue or create new stablecoins that mimic the functionality and features of TerraUSD

NOTE: This is an early draft, not final so take it for what it is.

1. 2M in assets seized from Whitby, Ont Man 

• Aiden Pleterski, who calls himself “Crypto King,” had $2 million of assets seized, Lamborghini, two McLarens, and two BMWs
• Pleterski was reportedly given $35 million by 140 investors.
• Now, he’s being sued by former investors in a bankruptcy proceeding and two civil lawsuits.
• Investors told the publication that at least $35 million given to Pleterski’s company, AP Private Equity Limited, went missing.
• No criminal charges yet

1. 9/22/2022 - CFTC Press Release
2. By transferring control to a DAO, bZeroX’s founders touted to bZeroX community members the operations would be enforcement-proof—allowing the Ooki DAO to violate the CEA and CFTC regulations with impunity, as alleged in the federal court action.
    –> CFTC Penalizes Blockchain Protocol $250K, Files Action Against Successor DAO
   9/27/2022 - Coindesk The CFTC Served Ooki DAO Papers by Posting Them in an Online Discussion Forum
   Members of Ooki DAO – which operates a protocol that offers illegal, off-exchange tokenized margin trading and lending services – were notified of the lawsuit when a CFTC paralegal posted the complaint and other documents to an online discussion forum meant for DAO members to discuss governance issues, a CFTC attorney claimed in a court filing. The documents were simultaneously submitted through a help chat box on the DAO’s website.
   
   –>coindesk
3. Terra Luna Saga Continues --> Interpool issues arrest warrant for Do Kwon