CFTC to Collected Over $1.3B Fines in a Year

That's 39% more than last year; amount includes funds from civil legal penalties, the seizure of proceeds from illegal transactions and compensationĀ 
27 November 2019   397

The U.S. Commodity Futures Trading Commission(CFTC) raised over $ 1.3 billion in administrative fines in fiscal 2019. The amount also includes payments from cryptocurrency operators.

According to the CFTC annual report, the regulator received $ 1,321,046,710 - 39% more than last year. This amount includes funds from civil legal penalties, the seizure of proceeds from illegal transactions and compensation for losses.

The CFTC did not indicate in the report the amount of fines received from companies related to digital assets. At the same time, the regulator mentioned some charges against players in the digital currency industry.

The commission recalled the Control-Finance cryptocurrency pyramid of $ 147 million, which affected more than 1,000 investors who lost 22,858 BTC. The CFTC also noted civil cases against John Barry Thompson, accused of fraud with bitcoins for $ 7 million, and Joseph Kim, who illegally misappropriated cryptocurrency. The latter was fined $ 1.1 million.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   912

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a ā€œmalicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.