Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Canto Chain Outage: The Canto blockchain, a Cosmos-based layer-1 network, has been offline for over 33 hours due to a consensus issue, halting all transactions. The Canto team plans to implement an upgrade to resolve the problem and assure users that all funds are safe.

2. WBTC Security at Risk?: BitGo CEO Mike Belshe addressed concerns about the security of Wrapped Bitcoin (WBTC) following a partnership that shifts some custodial operations to Hong Kong and Singapore, involving Tron CEO Justin Sun.

3. Venezuela Blocks Binance and X: The Venezuelan government has blocked access to Binance and the social media platform X (formerly Twitter) amid rising tensions over disputed presidential election results.

4. Tether Slams Celsius Lawsuit: Tether Limited has strongly rebutted a lawsuit filed by Celsius Network, calling it "baseless" and a "shakedown."

5. 💡Feature of the Day - Tornado Cash Dev Seeks More Funding: Alexey Pertsev, a developer of the Tornado Cash crypto mixing service, is urgently seeking additional funding for his legal battle as he faces charges of money laundering.

   
   All this and more in today’s headlines!

   

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📰 News Highlights:

Canto Chain Outage [Source][Source][Source]

Canto, a Cosmos-based layer-1 blockchain, has been down for over 33 hours due to a consensus issue that has halted all transactions on the network. The Canto team announced that they plan to implement an upgrade on August 12 at 12:00 pm UTC to resolve the issue.

The outage has brought Canto's operations to a standstill, with the last recorded transaction on the CantoScan block explorer occurring at 2:29 am on August 11. Despite the disruption, the team assured users that all funds are safe and that normal activities will resume once the chain is back online.

The consensus issue was first acknowledged by Canto in a social media update on August 12, though details about the exact nature of the problem remain sparse.

The team has not clarified whether the recent Callisto upgrade, locked in on August 9, might be connected to the outage.

WBTC Security at Risk? [Source][Source][Source][Source]

BitGo CEO Mike Belshe has addressed growing concerns about the security of Wrapped Bitcoin (WBTC) following a new venture that diversifies its custodial locations, including involvement from Tron CEO Justin Sun.

BitGo recently announced a partnership with Hong Kong-based BiT Global to move some of its Bitcoin custodial operations from the United States to jurisdictions like Singapore and Hong Kong.

However, Sun’s participation in the project has raised eyebrows, with some critics, including risk management firm Block Analitica Labs, warning of increased risks due to Sun's controversial reputation.

In response, Belshe downplayed these concerns, asserting that the changes in custodial locations do not compromise WBTC’s security or transparency.

He emphasized that BitGo's security protocols remain unchanged and that the underlying processes for managing WBTC are as robust as ever.

Belshe argued that the apprehension is more a reaction to Sun’s name than any factual basis, assuring that BitGo will continue to co-sign all transactions and maintain the same level of oversight it always has.

Venezuela Blocks Binance and X [Source][Source][Source]

The Venezuelan government has blocked access to the crypto exchange Binance and the social media platform X (formerly Twitter) as tensions rise over disputed presidential election results.

On August 9, local anti-censorship group VE sin Filtro reported a DNS block on Binance, affecting its website and mobile app. This move follows President Nicolas Maduro's order to ban access to X for ten days, amidst a growing dispute over the July 28 presidential election.

Maduro and his rival Edmundo González both claimed victory in the election, leading to widespread protests and international condemnation. The Venezuelan government’s electoral authority declared Maduro the winner with just over 51% of the vote, but González has challenged this, claiming he secured nearly 70%.

The United States, European Union, United Kingdom, and several South American countries have not recognized Maduro's win, calling for a detailed vote count.

Tether Slams Celsius Lawsuit [Source][Source][Source][Source]

Tether Limited has fiercely rebutted a lawsuit filed by Celsius Network, calling it a "shakedown" and "baseless," as the two companies clash over $2.4 billion in disputed Bitcoin.

The lawsuit, filed on August 9 in the U.S. Bankruptcy Court for the Southern District of New York, claims that Tether improperly liquidated Bitcoin held as collateral by Celsius before the crypto lender filed for bankruptcy in July 2022.

Tether, however, insists that it acted within the terms of a 2022 agreement that required Celsius to post additional Bitcoin as collateral when prices fell.

Tether argues that Celsius failed to meet its collateral requirements and that the liquidation was carried out at Celsius’ direction to cover an $815 million debt.

The stablecoin issuer also questioned the legal foundation of Celsius’ claims, suggesting that the lawsuit is an attempt to shift the financial burden of Celsius' mismanagement onto Tether. The company emphasized that it remains financially robust, with $12 billion in consolidated equity as of June 30, 2024.

Celsius contends that Tether did not provide the agreed-upon 10-hour window to post additional collateral before liquidating 39,542.42 Bitcoin, which has led to the current lawsuit.

💡 Feature of the Day: 

Tornado Cash Dev Seeks More Funding [Source][Source][Source]

Alexey Pertsev, a developer of the crypto mixing service Tornado Cash, is urgently seeking additional funding to continue his legal battle as he faces charges of money laundering and other crimes.

Pertsev, who was arrested two years ago, has been a focal point for the crypto community, particularly among those who advocate for digital privacy and the freedom to publish code.

His legal fight has reached a critical stage, with his support account calling for between $750,000 and $1 million to cover ongoing legal expenses.

The crypto community has rallied behind Pertsev, with initiatives like JusticeDAO raising substantial funds for his defense.

By June 19, over 654 Ether (approximately $2.3 million at the time) had been raised through a fundraiser on Juicebox, with additional funds coming in from various other sources.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com