The Desperate Traders Are Appearing

With all the aggressive attacks from SEC and governments on decentralized crypto exchanges luck Coinbase and Tornadocash it has been a difficult road for crypto investors. Now under the pressure of a prolonged bear market there are crypto developers sabotaging the security and viability of crypto from the greater good.

Over at Velodrome which is a auto market maker on the back of Solidly Exchange last week came out stating one of its own company wallet was compromised. $350k of crypto from the wallet was stolen and immediately the company posted disclaimer of the situation and how they would handle it.

An investigation on the hack was the next step in finding the culprit and resolve the potential flaws in the system to avoid from being hacked again. Sadly the reality come to light just less than a few days later and Velodrome notified the public in two weeks later.

The wallet was not technically compromised but funds were taken out of it by a fellow developer who was working for the company. His intentions were to borrow funds and make a few trades and return the funds hoping no one would notice. (With all the hacks and scrutiny on crypto exchanges in past few months you would think a developer would realize it is not smart to be stealing funds even if intention was meant well.)

Aftermath - The Confession

https://twitter.com/zachxbt/status/1558554317333925888?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1558554317333925888%7Ctwgr%5Ec1c49042b2d264e7a25bac309c48424a70d6de54%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fnews.coincu.com%2F117087-velodromes-gabagool-eth%2F

Not long after Veldorome discover the job was from the inside the developer disclosed a lengthy note on Twitter that to sum it up was in desperate need of liquidity to trade in order to avoid taking a massive lose.

A whole story was written on coincu here for reference if you want to read the details and learn more.

Traders Are Being Desperate

I do not think Gabagool.eth is the only one thinking and even acting upon what he did at Velodrome. Its going to be a difficult time for crypto as there are outsiders and insiders trying to take advantage of the asset boom. Where money goes so will those who want to take advantage of others.

For Gabagool's sake there is likely a lot going over on many other deeply invested crypto uers. The massive drops in prices has cause Gabagool to desperately steal from others. It is not only unethical but also shows the massive flaws of crypto DAOs, exchanges, and in general crypto coins.

Human nature of greed is dangerous. I end the post by mentioning to those unaware Gabagool was an advocate against unethical moves made in the crypto space. Over the years he has been posting wallet transactions that were profiting from the public. Whether it was front running an air drop or scheming public investors in buying coins that turn out to be worthless.

In no way am I advocating government should come in and regulate crypto nor have any say in how it evolves. Instead I have the optimism that mankind will find ways to get human emotions out of the space so no unethically actions can occur. This is maybe an extreme utopia thinking, but it is much better than letting the government intervene as it has been proven countless times they have fail to people more often than not.

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!

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