• ConsenSys privacy update to collect IPs and Ethereum addresses via MetaMask

• DCG has $2 billion in debt, but Barry Silbert says all subsidiaries are stable

• Singapore investigates crypto lender Hodlnaut for suspected fraud offenses

• Staked Ethereum withdrawals enter the Testnet stage, price rebounds 10%

• Cardano ecosystem stablecoin Ardana (dUSD) abruptly halts development

ConsenSys Privacy Update to Collect IPs and Ethereum Addresses via MetaMask

On November 23rd, ConsenSys, one of the firms behind the Ethereum merge, updated its privacy policy, stating that it will be collecting certain user data. This has led to backlash from the privacy-centric crypto community.

The privacy policy update from ConsenSys would see its crypto wallet, MetaMask, collect the IP and Ethereum wallet address of customers who transact using Infura as their default Remote Procedure Call (RPC) provider.

ConsenSys notes that it will not collect information on those using a personal Ethereum node or a third-party RPC provider with MetaMask. ConsenSys has also been collecting other data related to user identification, including contact details and profile information.

The move has raised concerns in the Web3 community, with many users threatening to boycott Consensys’ services. Some others have taken to share the education/tooling needed for users to circumvent the process.

Flipsider:

• MetaMask co-founder Dan Finlay has addressed the issue. He noted that since the company doesn’t use the data, it’s “not actually worth freaking people out.”

Why You Should Care

The move has been frowned upon as it was deemed to invade user privacy – which is an underlying tenet of the crypto industry.

DCG has $2 billion in Debt, but Barry Silbert says all Subsidiaries are Stable

In a message to shareholders, Barry Silbert, the founder and CEO of Digital Currency Group, has outlined the state of the company’s lending situation. He revealed that the company currently has a debt of $2 billion.

Silbert admits to intercompany loans, writing that DCG borrowed $575 million from Genesis Global Capital, its own subsidiary. However, the DCG chief explains that the loans were made “in the ordinary course of business.” 

The letter to shareholders also reveals a $1.1 billion promissory note connected to the collapse of Three Arrows Capital. DCG also has a $350 million credit facility from a group of lenders led by Eldridge Industries. 

According to Silbert, the company and its subsidiaries are stable. He adds that his company has “weathered previous crypto winters” and that it will “come out of [this one] stronger.”

Flipsider:

• Silbert mentions that DCG has raised $25 million in capital so far and expects the firm to bring in up to $800 million of revenue this year.

Why You Should Care

The letter from Barry Silbert aims to calm the nerves of shareholders. It comes amid fears due to the relationship with broker Genesis amid the FTX collapse.

Singapore Investigates Crypto Lender Hodlnaut for Suspected Fraud Offences

Singapore’s white-collar crime investigators have opened an investigation into the Singapore-based crypto lender Hodlnaut and its executives for suspected cases of cheating and fraud.

According to reports, Singapore’s law enforcement received multiple complaints between August and November. They concerned Hodlnaut and its directors falsifying the extent to which the company was exposed to a digital token – presumably UST. 

The probe is the latest legal action against Hodlnaut, which sought protection from its creditors earlier this year after losing around $300 million due to its exposure to the Terra crash and an additional $13.5 million to FTX.

The investigation will be conducted under sections 417 (non-aggravated cheating) and 424A (fraud by false representation). It could attract up to three years and a fine, or either (for 417) and up to 20 years in prison, a fine, for both.

Flipsider:

• The firm’s exposure was made after a Hodlnaut moderator on the firm’s Discord server allegedly said that said the firm had zero exposure to Terra.

Why You Should Care

The investigation into the operations of Hodlnaut highlights the increased scrutiny of the crypto industry due to the collapse of projects this year.

Staked Ethereum Withdrawals Enter the Testnet Stage, Price Rebounds 10%

After more than two months since the Ethereum merge, the Ethereum Foundation JavaScript Team has announced that it would relaunch the Shandong Testnet in the coming days.

At the relaunch of the testnet, withdrawals for staked ETH will be enabled. Ethereum developer Marius van der Wijden confirmed the announcement, stating that Ethereum client teams have launched a multi-client devnet. 

The devnet to test Beacon Chain withdrawals currently supports the Geth, Nethermind, Lodestar, Teku, Lighthouse, and Prysm clients. It will also introduce several critical upgrades and make changes to the EVM functionalities. 

The news was positively received by the Ethereum community, especially stakers. The Ether (ETH) also jumped, gaining as much as 10% inter-day to trade above $1,200 for the first time since November 20th.

The 24-hour price chart for Ethereum (ETH). Source: CoinMarketCap

Flipsider:

• Ethereum software firm ConsenSys on Thursday revealed that it also collects user data related to its on-chain wallet service MetaMask.

Why You Should Care

The move marks the beginning of the next significant phase for the Ethereum network after the Merge.

Cardano Ecosystem Stablecoin Ardana (dUSD) Abruptly Halts Development

Ardana, the decentralized exchange stable asset liquidity pool (dUSD) being built on the Cardano network, has halted developments. It claims to be due to “funding and project timeline uncertainty.”

Ardan was founded by Ryan Matovu in the first quarter of 2021 and was hailed as the “first all-in-one stablecoin ecosystem.” The team behind the project announced the halt of developments on Thursday, November 24th.

Ardana Labs explained that it was difficult building on the Cardano network and a lot of funding went into “tooling, infrastructure and security.” The team notes that codes for the project would remain open source. Consequently, other teams could build upon it if they wished.

In response, the SundaeSwap team has reached out to Ardana to buy any infrastructure or internal tools developed in the past year. A closely related project, Orbis, which aimed to address the scalability of Cardano, has also halted its development.

Flipsider:

• The Cardano ecosystem is not left without a stablecoin. Djed, an over-collateralized stablecoin built in partnership with COTI, will be launched in January 2023.

Why You Should Care

Halting after years of development, and after raising $10 million in October 2021, has made the Cardano community call the project a scam.