This week in the crypto world, we saw a bank manager jailed for losing his branch to a pig butchering scam, Certik admit that it screwed up, and Grayscale start an Avalanche (trust).
Bank Manager Jailed for Losing Branch to Crypto Scam
The former CEO of the Kansas Heartland Tri-State Bank who lost $47 million of the bank’s money to a pig butchering scam was this week sentenced to 24 years in prison. Shan Hanes’ actions led to the failure of the bank and a “complete loss of equity for investors,” according to the US Attorney’s Office for the District of Kansas, with the money used to pay off fraudsters after Hanes was caught up in a pig butchering scam.
Hanes got into trouble when he began using the bank’s money to invest in a crypto scam after an unsolicited WhatsApp message, with the scammers demanding more money to unlock each previous deposit.
Seriously.
Certik Admits to Kraken Cock Up
Blockchain security firm Certik this week admitted to making “errors in judgment” over basically stealing $3 million from Kraken after a security audit. The firm noted that it “poorly communicated with Kraken, resulting in a public dispute that raised significant concerns within the community,” which some would argue is an understatement of the matter.
Certik came off second best after a social media battle in June after a security researcher withdrew $3 million from the exchange and failed to return it, an action which Kraken Chief Security Officer Nick Percoco called “extortion.”
Grayscale Starts an Avalance (Trust)
Avalanche took another huge step in the right direction this week when Grayscale announced that it is launching an Avalance trust to sit alongside Bitcoin and Ethereum, which have, of course, become ETFs.
The move sees the blockchain, which launched in 2020, elevated to new heights, with Grayscale praising its real-world adoption. This was shown last month when the California Department of Motor Vehicles (DMV) put 42 million car titles on the Avalanche network.
