‘Crypto king’ kidnapped, Euler exploiter returns $90m, Bitcoin flirts with 10-month liquidity lows

‘Crypto king’ kidnapped and tortured

Canada’s self-proclaimed “crypto king” Aiden Pleterski was kidnapped, tortured and held for ransom last year, according to court documents.

Pleterski’s crypto investment scheme was forced into bankruptcy in August.

While he had pledged to pool investors’ money to invest in cryptocurrencies and foreign exchange positions, Pleterski allegedly only invested about 2% of the $41.5 million invested, burning roughly $16 million on his extravagant lifestyle.

Court documents filed in relation to the bankruptcy case on March 14 claim that Pleterski was kidnapped, tortured and held for ransom during three days in December.

He was eventually released after promising the kidnappers that he’d come up with the money for the ransom quickly.

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Euler Finance exploiter returns $90m from $197m hack

The Euler Finance exploiter has returned $90 million of the $197 million worth of Ether stolen from the protocol.

On March 13, the exploiter launched a flashloan attack to steal digital assets consisting primarily of ETH, WBTC, and USDC.

The attacker engaged in a series of on-chain messages with both Euler and North Korea-linked cybercriminal gang Lazarus, before publicly requesting to ”come to an agreement.”

It remains to be seen if the exploiter will return the remaining funds.

NOW READ: Hacker poised to pocket 2.8 million tokens in ‘compromised’ Arbitrum airdrop

Coinbase CEO Armstrong calls for crypto activism

Coinbase CEO Brian Armstrong has called on American voters to demand clear crypto regulations after the Securities and Exchange Commission slammed the exchange with a Wells notice, indicating pending legal enforcement.

The crypto boss made the demand late last week during a Twitter Space, urging listeners to push their local congressperson to adopt a pro-crypto stance.

Coinbase launched advocacy programme Crypto 435 in February with the goal of raising awareness in the US regarding the crypto industry.

Armstrong has previously asserted his resolve to fight the SEC in court if required.

The SEC has battered the crypto industry with enforcement actions this year, having launched similar cases against major crypto companies such as Kraken and Paxos.

NOW READ: Coinbase ‘welcomes’ legal battle with SEC amid signs of widening crypto crackdown

Bitcoin liquidity hits 10-month low despite rally

Despite strong price action in recent weeks, Bitcoin liquidity has dropped to a 10-month low.

The drop in liquidity comes following a wave of US bank collapses in March. A large chunk of USD-paired tokens relied on reserves held in banks such as Silvergate, Silicon Valley Bank, and Signature Bank.

Bitcoin has surged 70% this year, though debate rages as to whether it is a safe haven from banking system contagion or simply experiencing high volatility linked to low liquidity.

NOW READ: Bitcoin becomes haven during bank bloodbath with 28% surge: ‘Extra liquidity, that’s the difference’

Nasdaq sets Q2 goal for digital asset custody service

Nasdaq is pushing to launch its digital asset custody service by the end of the second quarter, marking a possible silver lining for the crypto industry following a slew of custodian bankruptcies in March.

For a major exchange to offer custody services would mark a major milestone for crypto in the US, where such services have largely been handled by banks.

NOW READ: Stablecoins and Binance next in SEC crosshairs after Coinbase warning

NFT holder accidentally burns $129,000 CryptoPunk

NFT trader Brandon Riley accidentally burned a CryptoPunk NFT worth $129,000 by sending the coveted piece to a burn address.

Riley tweeted the mistake on Friday, stating that the NFT represented a third of his net worth.

Because burn addresses are built so no one can access its private keys, any assets sent to them are lost forever, highlighting the ever-present potential for loss, even by experienced crypto users.

In his tweet, Riley asked CryptoPunk creator Yuga Labs to sell him a wrapped “v1 Punk” with the same likeness to commemorate his loss.

Fed releases Custodia rejection verdict, cites crypto-associated risks

The US Federal Reserve published its rejection of Custodia Bank’s application to become a Federal Reserve System member on Friday, outlining what it states to be bank run risks and Custodia’s “novel and unprecedented features.”

Custodia is state chartered in crypto-friendly Wyoming, and proposes a new model for income generation, which makes money on fees rather than invested deposits.

Some commentators are saying the rejection is based on perceived wider crypto-scepticism held by regulators.

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