Korean Authorities to Check 3 Exchanges

Staff of these exchanges is suspected in embezzing funds from customers' accounts
15 March 2018   405

Law enforcement authorities in South Korea are checking three cryptoexchanges, suspecting that their employees may be involved in embezzlement of clients' funds. This is reported by CoinDesk.

Employees of the exchanges, including management, are suspected of using funds from their clients' accounts to purchase crypto-currency on other exchanges.

In the search for evidence, the Seoul County Prosecutor's Office confiscated hard drives, mobile phones and documents.

The firms turned up on our radar in January during our investigation of suspicious money transfers between Bitcoin exchanges that were detected during an audit by the Financial Services Commission and the Korea Financial Intelligence Unit.
 

S. Korean Prosecutor

Recently in South Korea, the requirements for the crypto exchanges were tightened, as part of the government's policy to combat money laundering and other questionable practices.

Ethereum VM May Have Vulnerability

The vulnerability is reported by NettaLab Twitter account
12 November 2018   65

On November 9, a statement appeared in Netta Lab’s Twitter account that the organization discovered a vulnerability in the Ethereum virtual machine that allows to execute smart contracts endlessly without paying for gas online. The researchers also allegedly turned to the operator of the American database of vulnerabilities, where they registered the corresponding discovery.

Netta Labs discovered an Ethereum EVM vulnerability, which could be exploited by hackers. The vulnerability can cause smart contracts can be executed indefinitely without gas being paied.
 

Netta Lab's Twitter

At Netta Lab's request, Google demonstrates the site of the netto.io project, which specializes in auditing smart contracts under the Netta Lab brand, but the Twitter accounts of the projects do not match. Note that the profile that reported the vulnerability was registered in November.

Many users expressed doubts about the authenticity of the information that appeared, but then the creator of the NEO project Da Hongwei said that he spoke with the CEO of Netta Labs and asked the researchers to audit the NEO virtual machine.

Nevertheless, Vitalik Buterin wrote on Reddit that this is a vulnerability in the Python-implementation of the virtual machine, which was first reported on GitHub 9 days ago. This means that the main clients (go-ethereum; parity and cpp-ethereum) are not affected.