• Cardano’s overcollateralized stablecoin, Djed, is set to launch next week.
• Djed is an algorithmic stablecoin protocol that behaves like an autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.
• COTI will manage all the project’s front-end activities and collect fees from the minting and burning of DJED and its reserve coins.

Cardano is set to launch its new overcollateralized stablecoin, Djed, next week. Djed is an algorithmic stablecoin protocol that behaves like an autonomous bank, buying and selling stablecoins for a price within a range that is pegged to a target price. This new protocol provides a much-needed level of price stabilization for the DeFi market, as it incorporates formal verification to ensure price stabilization.

COTI, in collaboration with Cardano’s lead developer, Input Output Honk Kong (IOHK), has taken the lead on managing Djed’s front-end activities, as well as collecting fees from the minting and burning of DJED and its reserve coins. This is an important step in the right direction for the DeFi market, as it helps to ensure that prices remain stable and that investors are protected from volatility.

In addition, Djed is the first stablecoin to be backed by Cardano’s native token, ADA. This means that investors can have confidence that their investments will remain stable and secure, as the token is collateralized by the underlying blockchain. This is an important step in the development of DeFi, as it provides investors with a high degree of security and trust in the financial system.

Overall, the launch of Djed is a major step forward for the DeFi market. It provides a much-needed level of price stabilization for investors, as well as the security and trust needed for long-term success. With the launch of Djed, Cardano is furthering its commitment to provide a secure and reliable platform for DeFi.

• The Raydium hacker allegedly transferred 1,774.5 ETH to Tornado Cash to cover their tracks.
• Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain.
• Raydium lost over $2 million in the LP compromise.

A hacker has recently taken advantage of a bug in the Raydium stablecoin and wrapped SOL’s liquidity pools. This malicious actor was able to drain Raydium’s liquidity pools of over $2 million, and now it appears that they are attempting to cover their tracks.

Etherscan, a blockchain analytics and monitoring platform, has revealed that the Raydium hacker has transferred 1,774.5 ETH to Tornado Cash in an effort to hide their identity. Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain. It allows users to deposit and withdraw Ethereum’s ERC-20 tokens and ether (ETH) using different wallet addresses, allowing malicious actors to hide their transaction history.

The incident occurred on December 16, when Raydium announced on Twitter that “owner authority was overtaken by an attacker” who had allegedly drained the protocol’s liquidity pools. The attacker was able to verify the drainage without burning Liquidity Pool tokens, and now it appears they are trying to cover their tracks by sending the funds to a privacy-focused platform.

Fortunately, the Raydium team is aware of the attack and has already taken steps to mitigate the situation, including reimbursing affected users and allocating more funds to cover the losses. They are also actively investigating the incident and are working with law enforcement to identify the hacker.

In the meantime, the Ethereum community is actively tracking the hacker’s movements and is warning others to remain vigilant. It is unclear what the hacker’s next move is, but it is clear that they are attempting to hide their tracks by using a privacy-focused platform. Although this incident is a major setback for Raydium, it is a stark reminder of the importance of security in the blockchain space.

• The US Department of Justice has taken global enforcement action against the crypto company Bitzlato, resulting in the arrest of its founder Anatoly Legkodymov.
• The DoJ has seized Bitzlato’s website and designated it as a “primary money laundering concern” linked to illicit Russian finance.
• FBI agents detained Legkodymov in Miami as part of a criminal case against Bitzlato for running a money transmission business that moved and transferred criminal monies and failed to meet US regulatory standards.

The US Department of Justice has announced a major global crypto enforcement action against the crypto company Bitzlato on January 18th, 2023. The DoJ has seized Bitzlato’s website and designated it as a “primary money laundering concern” linked to illicit Russian finance.

The DoJ has taken this action in coordination with French law enforcement and the Treasury Department, as part of a concerted effort across Europe and the United States. This enforcement operation was driven by the company being a “crucial financial resource” for the Hydra darknet marketplace, which allowed users to launder money from assaults like ransomware. It is estimated that Hydra Market customers transferred more than $700 million in bitcoin with Bitzlato, either directly or through middlemen, until it was shut down by German law enforcement and the US in April 2022. In addition, Bitzlato received more than $15 million in ransomware proceeds.

The DoJ has taken enforcement action against Bizlato in order to punish the company for running a money transmission business that moved and transferred criminal monies and failed to meet US regulatory standards. As part of this case against Bitzlato, FBI agents detained its founder, Anatoly Legkodymov, a Russian national residing in China, on January 17th in Miami. He will be charged with a crime in the Southern District of Florida’s US District Court.

U.S. Deputy Attorney General Lisa Monaco commented on the enforcement action, “This enforcement action is part of our ongoing effort to disrupt and dismantle the financial networks that enable transnational organized crime. We are committed to holding accountable those who support and facilitate criminal activity and money laundering, no matter where they may be located.”