Tornado Cash Founder Sent To Jail, DeFi Struggle EU: Finance Redefined
Welcome to Finance Redefined, your weekly volume of decentralized finance (DeFi) insights – a newsletter designed to bring you the most relevant developments from the past week.
Last week saw the conviction of DeFi developer Tornado Cash for money laundering. Alexei Persev was sentenced to more than five years in prison.
In other news, Binance found a cure for the infamous address poisoning scam, Polymarket raised $70 million, attracted investment from Vitalik Buterin and Peter Thiel, and DeFi faces a challenging future in the European Union.
Tornado Cash developer pleads guilty to money laundering.
Alexey Persev, the developer of the Tornado Cash cryptocurrency mixing protocol, has been found guilty of money laundering. This has serious implications for open source code developers.
On May 14, a Dutch jury at the S-Hertogenbosch Court of Appeal found Percev guilty of money laundering. The developer was sentenced to 5 years and 4 months in prison for defrauding the platform of illegal assets worth 1.2 billion dollars.
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DeFi may struggle to remain decentralized after new EU legislation.
New regulations in the EU may soon force DeFi protocols to make tough decisions. At the heart of the problem is the tendency of many DeFi protocols to have centralized front-ends and intermediaries.
In the year The EU Crypto-Assets Regulation (MiCA), which will be fully operational by the end of 2024, will require DeFi protocols to comply with the same licensing and know-your-customer requirements as traditional financial services firms – a burden for many DeFi protocols. He may or may not be able to bear it.
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Binance prepares “pesticide” to solve poisoning scams after $68 million exploit
Binance's security experts created an “antidote” against address poisoning scams that trick investors into voluntarily sending to fraudulent addresses.
The security team of the world's largest cryptocurrency exchange developed an algorithm that discovered millions of poisoned crypto addresses, according to a report shared with Cointelegraph.
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Polymarket collects 70 million dollars from Vitalik Buterin, Founders Fund
Peter Thiel's venture capital firm, Founders Fund, and Ethereum founder Vitalik Buterin led a $70 million fundraising effort for Polymarket, a platform that enables betting on political events.
According to Bloomberg, Polymarket has successfully raised $70 million in two funding rounds as betting on the 2024 US presidential elections continues to intensify. Polymarket's latest Series B funding round was led by Founders Fund and raised $45 million.
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Overview of the DeFi market
According to data from Cointelegraph Markets Pro and TradingView, DeFi's top 100 tokens by market capitalization had a mixed week, with most trading in the green on the weekly charts. The total value locked up in DeFi protocols remains over $90 billion.
Thanks for reading this week's roundup of the most impactful DeFi developments. Join us next Friday for more stories, insights and lessons about this dynamic and evolving space.
