• Crypto developers have exposed flaws in Societe Generale’s euro stablecoin.
• Brazil is investigating Binance for offering illegal derivatives.
• Fed Governor has highlighted the benefits and risks of tokenization and smart contracts.
Crypto Developers Expose Flaws in Societe Generale Euro Stablecoin
Crypto developers have identified “absolutely horrible” security flaws in a euro-backed stablecoin being developed by French bank Societe Generale. The coin, which was designed to facilitate payments between banks, has been criticized for its lack of transparency and accountability as well as other potential risks associated with it.
Brazil Investigating Binance Over Illegal Derivatives Offerings
The Brazilian Securities and Exchange Commission (CVM) is currently investigating popular cryptocurrency exchange Binance over allegations that it offered illegal derivatives products without first obtaining a proper license to do so. CVM believes that Binance may have violated local laws by offering services such as futures contracts and options trading without the necessary authorization from the agency.
Fed Governor Highlights Benefits, Risks of Tokenization & Smart Contracts
Federal Reserve Governor Lael Brainard recently spoke about the potential benefits and risks associated with tokenization and smart contracts during an online event hosted by Harvard Law School’s Program on International Financial Systems (PIFS). Brainard discussed how these technologies could potentially revolutionize many aspects of finance if properly regulated, but also highlighted several challenges related to their adoption such as privacy concerns, legal uncertainty, cybersecurity threats, and more.
Trezor Confirms Refusing Coinjoin UTXOs To Protect Privacy Of Others
Hardware wallet company Trezor recently confirmed that it is refusing coinjoin UTXOs (unspent transaction outputs) to help protect the privacy of its users. Trezor said that its decision was made out of an abundance of caution because coinjoins can be used to mask suspicious activity on the blockchain—something which could put innocent users at risk if not handled correctly or monitored closely enough.
Dutch Court To Release Tornado Cash Dev Alexey Pertsev Under Surveillance
A Dutch court has ruled that Russian programmer Alexey Pertsev—a developer behind anonymous Bitcoin mixing service Tornado Cash—can be released from pre-trial detention under supervised bail conditions while his extradition case is being decided upon by authorities in Russia and Ukraine. Pertsev had been arrested on charges related to alleged money laundering activities involving cryptocurrencies earlier this year in Amsterdam before being transferred into police custody in Ukraine last month due to an Interpol Red Notice against him issued by Russia’s Interior Ministry.