The X social media account of the Algorand Foundation’s chief executive has been hacked, marking the third major exploit of crypto-related X accounts this month. In a new thread, the firm behind smart contract platform Algorand (ALGO) has announced that the X account of Staci Warden, the company’s CEO, has been hacked and warns against […]
The post Algorand Foundation CEO’s X Account Compromised As Spree of Crypto Social Media Hacks Continue appeared first on The Daily Hodl.
Members of the crypto community have called out the SEC Chairman for “shilling” Algorand.
A four-year-old video of United States Securities an Exchange Commission (SEC) chair Gary Genser giving praise to smart contract platform Algorand (ALGO) is circulating on Twitter following the SEC declaring ALGO is an unregistered security.
In the video, Gensler referred to Algorand as a “great technology” while he was contemplating whether a “high performance” smart contract network would be capable of integrating an Uber or Lyft-like application on its platform.
ALGO is one of six tokens that Gensler claimed was an unregistered security in the SEC’s lawsuit against crypto trading platform Bittrex on April 17 that took issue with the Algorand Foundation's initial coin offering (ICO) of ALGO in June 2019.
Cryptocurrency researcher Mason Versluis was one of the first to highlight the video in an April 17 tweet criticizing Gensler for “shilling” ALGO, with others calling out the SEC chair for his apparent hypocrisy.
Gary Gensler was SHILLING $ALGO and now he’s trying to call it a security.
— MASON VERSLUIS (@MasonVersluis) April 17, 2023
This dude is all over the place, and he’s gotta go ➡️ pic.twitter.com/JmpL9xAZhq
Gensler’s praise of Algorand was heard by an audience at a Massachusetts Institute of Technology (MIT) “Fintech Beyond Crisis” conference held on April 25, 2019.
Gensler worked as a Professor of Global Economics and Management at MIT prior to becoming the SEC’s chair, he acknowledged former MIT colleague and Algorand founder Silvio Micali in the speech — who appeared to be in the crowd.
The video sparked Cinneamhain Ventures partner Adam Cochran to question the long-standing advice from Gensler for crypto firms to register with the regulator.
6/18
— Adam Cochran (adamscochran.eth) (@adamscochran) April 17, 2023
Surely if there is a path to register, a world renown MIT professor who personally knows the Chairman of the SEC can figure it out, or pick up the phone and call the Chairman...
"Surely if there is a path to register, a world renown MIT professor who personally knows the Chairman of the SEC can figure it out," Cochran tweeted on April 17.
Fox Business reporter Eleanor Terrett expects Gensler to be questioned over his Algorand comments in his upcoming testimony before the U.S. House Committee on Financial Services on April 18.
Other critics choose to mock the situation at hand, highlighting the price decline of ALGO which has seen a 93.8% decline since its launch according to CoinGecko data.
If you bought $100 of Algorand when Gensler told you they could build Uber on it you would now have $5
— db (@tier10k) April 17, 2023
It should be noted that ALGO didn't hit the market until late June 2019, two months after Gensler's speech.
Related: Coinbase and Algorand give divergent reasons for staking reward suspension
Gensler stated in an April 17 tweet that it has been an “honor” to work at the SEC over the last two years and chose to highlight the 1,500 enforcement actions the regulator has undertaken since he's been at the helm.
Serving at the @SECGov for two years has been an honor.
— Gary Gensler (@GaryGensler) April 17, 2023
We’ve filed 1,500 enforcement actions & overseen tens of thousands of registrants.
We’ve proposed rules to make our markets more efficient, competitive, transparent, resilient—and worthy of the public’s trust.
More
Gensler was sworn into office as SEC chair on April 17, 2021, after U.S. President Joe Biden’s nomination of Gensler was confirmed by the Senate on April 14, 2021.
Magazine:Unstablecoins: Depegging, bank runs and other risks loom
The Foundation stated that it is “pursuing all legal remedies to maximize asset recovery.”
The Algorand Foundation has revealed a $35 million USDC hole in its balance sheet as a result of exposure to embattled cryptocurrency lending firm Hodlnaut, which has paused withdraws since Aug. 8.
Algorand is an institutional-grade blockchain infrastructure with embedded smart contract functionality. The Algorand Foundation is a not-for-profit community organization focused on developing the Algorand ecosystem.
The announcement was made on the Algorand Foundation website on Sept. 9, with the Foundation stating that it's “pursuing all legal remedies to maximize asset recovery.”
Hodlnaut’s financial situation first fell into deep waters when its $300 million investment into TerraUSD (UST) on the Anchor protocol fell dramatically following the de-pegging of UST and collapse of the LUNA token, resulting in the crypto lending firm pausing withdrawals and halting all trading activity, citing a liquidity crisis.
Weeks later, the firm was placed under interim judicial management, a form of creditor protection program, by the Singapore court.
Today we informed the community about our USDC exposure to Hodlnaut after they suspended withdrawals from their platform on August 8, 2022.
— Algorand Foundation (@AlgoFoundation) September 9, 2022
The full details can be found here: https://t.co/4pLkSiKW7b
The Algorand Foundation said the majority of the investment locked on the platform consisted of “locked, short term deposits,” but are now inaccessible due to Holdnaut’s suspension of withdrawals.
However, the Algorand Foundation notes that the $35 million represents less than 3% of the Foundation’s assets and they “do not anticipate [any arising] operational or liquidity issues," and added that the “funds were a surplus to day-to-day requirements”:
“We invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose.”
Embattled crypto lender Hodlnaut is now subject to an Interim Judicial Management to resolve its liquidity issues.
Related: 3AC: A $10B hedge fund gone bust with founders on the run
Under Singaporean jurisdiction, corporate entities are placed under Interim Judicial Management for debt restructuring purposes in order to preserve and protect assets at risk prior to onset of legal proceedings.
The Algorand Foundation has played a key role, noting that on Aug. 29, the Singapore High Court appointed the Foundation's nominees Angela Ee along with Aaron Loh of EY Corporate Advisors to act as the Interim Judicial Managers for Hodlnaut, aimed at preserving Hodlnaut's asset until further court action begins.
The founder of Ethereum challenger Algorand (ALGO) says that crypto assets with one key feature will survive into the next decade as blockchains become mainstream tools used by traditional financial institutions. In a new interview with the Los Angeles Times, Silvio Micali, a professor of computer science and cryptography at the Massachusetts Institute of Technology […]
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