Latest Crypto News: Polygon Proposes Architecture For ‘Polygon 2.0’; $656M Lost From Crypto Hacks, Scams, Rug Pulls In H1 2023, Says Report

Here are some of the major developments from the world of crypto over the past few days

Latest Crypto News: Polygon Proposes Architecture For ‘Polygon 2.0’; $656M Lost From Crypto Hacks, Scams, Rug Pulls In H1 2023, Says Report

Polygon Labs, the creator of the Polygon network, has proposed an architecture for its forthcoming “Polygon 2.0” project.  

The team wrote in a blog past that the new project should be made up of four different “layers” that will combine to create a web of networks ultimately connected to each other through Ethereum, reported.  

If approved by validators, Polygon 2.0 will also feature an aggregator that makes bridge transactions “near-instant and atomic,” the team said.

The team had first announced Polygon 2.0 on June 12, 2023. Later on June 20, co-founder Mihailo Bjelic proposed upgrading the existing Polygon network. The latest post gives greater detail about what Polygon 2.0 will look like.  

The foundation of the project will be the “staking layer” that currently exists. This consists of a “validator manager” contract on Ethereum plus an additional “chain manager” contract for each individual Polygon chain. In the future, new Polygon chains will be able to form by launching new chain manager contracts on Ethereum.

$656M Lost From Crypto Hacks, Scams, Rug Pulls In H1 2023: Report

The total value of cryptocurrencies lost in scams, hacks and rug pulls amounted to $656 million during the first half of 2023, according to a June 30, 2023 report by Web 3.0 security firm, Beosin.

This includes the loss of $471.43 million in 108 protocol attacks, $108 million in various phishing scams and $75.87 million over 110 rug pulls. For hacks, the amount represented a significant decrease over H1 2022 and H2 2022, where $1.91 billion and $1.69 billion were lost, respectively.  

“Approximately $215 million of stolen assets were recovered, accounting for 45.5 per cent of all stolen assets. In contrast, in 2022, only 8 per cent were recovered and $113 million of stolen assets were transferred to mixers: $45.38M into Tornado Cash and $68.14M into other mixers,” Beosin analysts wrote in their report.

Celsius Network Gets Nod To Convert Altcoins Into BTC, ETH

The United States Bankruptcy Court for the Southern District of New York has approved bankrupt crypto lender Celsius Network’s plan to convert its altcoins into Bitcoin.

The order was issued by Judge Martin Glenn, and the liquidations will pave the way for the distribution of the funds to creditors in the near future, reports  

The proposal was officially approved following discussions between Celsius and the US SEC. 

Under the bankruptcy ruling, Celsius is authorised to “sell or convert any cryptocurrency assets, excluding tokens associated with Withhold or Custody accounts, into BTC or ETH starting from July 1, 2023.

Celsius, which faced bankruptcy in 2022 following the collapse of the Terra ecosystem and its Terra (LUNA) and TerraUSD (UST) tokens, has left creditors waiting for a resolution. Despite the bankruptcy filing months ago, the recent verdict has introduced new possibilities and extended the proceedings.