Euler Finance Hacker Rejects Bounty, SVB Financial Group Files for Bankruptcy
Market Update
- Markets have largely received news of the Fed's balance sheet expansion to $8.6T earlier this week to be favorable but concerns around the stability of regional banks still loom. $SPX (-1.3%)and $QQQ (-1.0%) have opened lower today after First Republic Bank received its $30b infusion from other banks. $BTC (+6.0%) briefly traded at $27k this morning before retracing to right below it, while $ETH (+3.6%) did not break its $17.8k high from earlier in the week. Across the Top 100, Conflux ($CFX) and Stack ($STX) have been the top gainers over the past week. The former benefitted from the 'China narrative,' ranking 7th in 24H volume in the top 100. We wrote about Stacks' potential for growth two weeks ago.
- The hacker behind the $200m hack of Euler Finance, a lending protocol, rejected the protocol's offer of $20m and instead used Tornado Cash to obfuscate 1k ETH (~$1.65m). Euler Finance had publicly offered the attacker 10% of the stolen funds if they returned the rest, but the attacker did not take the deal. However, the hacker did send 100 ETH to one of the victims. After being hidden for eight months, the vulnerability in the protocol's donation mechanism allowed the hacker to create an overlevered position that, when liquidated in the same block, artificially caused it to sink, keeping $200 million divided into DAI, USDC, wBTC, and ETH. An address controlled by the entity that exploited Euler Finance's protocol has sent 100 ETH to a wallet associated with Lazarus Group's Ronin network hack, drawing suspicion that the North Korean group was behind this episode.
- SVB Financial Group, the former parent company of Silicon Valley Bank (SVB), has filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the SDNY. Silicon Valley Bank had some high-profile crypto customers, including Circle Internet Financial and Ripple, although it was not as focused on crypto as other banks that have recently collapsed, such as Silvergate Bank and Signature Bank. SVB Financial has around $2.2 billion in liquidity, $3.3 billion in bond debt, and $3.7 billion of outstanding preferred equity. SVB Capital and SVB Securities, the company's venture capital and broker-dealer arms, are not included in the bankruptcy filing. The bankruptcy filing comes after regulators took control of Silicon Valley Bank due to concerns about the bank's financial stability.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
The $ETHBTC pair has just violated lows going back since last July as Bitcoin largely has shown outperformance over Ethereum since last Fall. This break of five-month lows normally signifies that it's still early to consider swapping to Ethereum, and i expect further Bitcoin outperformance over the next 3-5 days until Ethereum tries to make a relative stand. While $ETHBTC momentum has officially entered oversold territory, counter-trend exhaustion remains premature to expect a low. Overall, while $ETH on an absolute basis looks likely to advance to challenge last August's peaks near $2000, the $ETHBTC should show further downside into next week before this can stabilize and try to turn back higher. Bottom line, a rally back over 0.0676 is necessary before expecting any advance in $ETHBTC, and a pullback down to 0.060 looks very possible before this stabilizes.
Daily Important Metrics
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All metrics as of March 17, 2023 12:33 PM
All Funding rates are on bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $513B | $26,565 | ↑ 7.21% | ↑ 60% | |
 ETH | $211B | $1,726 | ↑ 3.79% | ↑ 44% | ↓ -16% |
 ADA | $12B | $0.3365 | ↑ 3.39% | ↑ 36% | ↓ -24% |
 MATIC | $10B | $1.19 | ↑ 4.44% | ↑ 56% | ↓ -4.75% |
 DOGE | $9.8B | $0.0741 | ↑ 4.87% | ↑ 5.60% | ↓ -55% |
 SOL | $7.7B | $20.12 | ↑ 3.41% | ↑ 103% | ↑ 43% |
 DOT | $7.5B | $6.39 | ↑ 5.31% | ↑ 47% | ↓ -13% |
 LINK | $3.6B | $7.06 | ↑ 7.02% | ↑ 27% | ↓ -33% |
 NEAR | $1.8B | $2.04 | ↑ 5.09% | ↑ 61% | ↑ 0.15% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -38% | $14.98 | ↑ 6.62% | ↑ 81% | ↑ 20% |
| BITW | ↓ -58% | $9.72 | ↑ 2.75% | ↑ 81% | ↑ 21% |
| ETHE | ↓ -52% | $8.19 | ↑ 3.80% | ↑ 72% | ↑ 12% |
| BTCC | ↓ -0.53% | $4.91 | ↑ 6.97% | ↑ 62% | ↑ 1.69% |
News
QUICK BITS
Decrypt.co YouTube Influencers Slapped With $1 Billion Lawsuit for Promoting FTX The lawsuit alleges that several social media influencers solicited the sale of unregistered securities in promoting FTX. |
Decrypt.co LinksDAO Wins Bid to Buy Scottish Golf Course, CEO Says The Web3 golf community claims that it is following through with its original plan to buy a real-world golf course. |
MARKET DATA
CoinDesk Wallet Tied to Euler Exploit Sends 100 Ether to Lazarus Group The Lazarus Group was behind the $625 million exploit of Axie Infinity’s Ronin network in March 2022. |
CoinDesk Silicon Valley Bank's Parent Company Files for Bankruptcy The company said Friday it had filed for court-supervised reorganization in the United States Bankruptcy Court for the Southern District of New York to preserve... |
DOSE OF DEFI
Coin Telegraph MakerDAO passes proposal for $750M increase in US Treasury investments The emergency proposal increases MakerDAO’s holdings of United States bonds by 150%, aiming to diversify the Dai stabl... |
REGULATION
CoinDesk FDIC Denies Report Signature Bank Purchaser Must Divest Crypto The Federal Deposit Insurance Corporation denied it would require any purchaser of Signature Bank to divest its crypto activities. |
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