The crypto industry has faced several blows in the past few days of August. The month began with the Securities and Exchange Commission charging eleven individuals for allegedly promoting an illegal crypto-based pyramid scheme. The Ponzi scheme managed to collect over $300 million from the investors, leaving the world in a state of shock.
Called Forage, the scheme claimed to be based on a decentralized platform that enabled millions of retailers to complete transactions via smart contracts based on Ethereum, Binance, and Tron blockchains. Allegedly, Forsage was an illegal pyramid scheme that was used to raise money from new investors to pay the old ones. The SEC has charged eleven for founding and aggressively promoting the scheme.
The next two days weren’t good for the Crypto industry either. On August 2, the Cryptocurrency startup – Nomad – experienced a severe cybersecurity breach where it lost almost $200 million. Nomad, also known as a blockchain bridge, allows investors to shift their tokens from one network to the other.
The hackers leveraged a security loophole that allowed users to enter any value into the system and take out the funds. This is one of the biggest cybersecurity breaches of recent times.
On the same night, a few unknown attackers hacked nearly 8,000 digital wallets connected to the Solona blockchain.
Overall, August has started on a tough note for the global Crypto industry. With the market already experiencing a downward trend, such security issues have left investors all across the globe worried and confused.