Last August, PayPal became the first major financial company to roll out a stablecoin. Labeled PayPal USD, or PYUSD, the coin was issued on the Ethereum blockchain and "fully backed by U.S. dollar deposits, short-term Treasuries and similar cash equivalents." Now, the financial company is adding Solana as an option, "making PayPal's stablecoin faster and cheaper to use." "The Solana blockchain is known for processing massive amounts of transactions at high speeds with extremely low costs, providing significant benefits for commerce use cases," says the company in a press release. "As the most used blockchain for stablecoin transfers, according to data from blockchain analytics platform Artemis, Solana has emerged as the leading blockchain to run tokenized transactions and is ideal for PYUSD as it continues to be used for payment use cases."

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Former FTX executive Ryan Salame has been sentenced to more than seven years in prison, "the first of the lieutenants of failed cryptocurrency mogul Sam Bankman-Fried to receive jail time for their roles in the 2022 collapse of the cryptocurrency exchange," reports the Associated Press. From the report: Salame, 30, was a high-ranking executive at FTX for most of the exchange's existence and, up until its collapse, was the co-CEO of FTX Digital Markets. He pleaded guilty last year to illegally making unlawful U.S. campaign contributions and to operating an unlicensed money-transmitting business. The sentence of 7 1/2 years in prison, plus three years of supervised release, was more than the five to seven years prosecutors had asked Judge Lewis A. Kaplan to impose on Salame in their pre-sentencing memo. While Salame was a high-level executive at FTX, he was not a major part of the government's case against Bankman-Fried at his trial earlier this year and did not testify against him. In a bid for leniency, Salame said during the sentencing hearing that he cooperated and even provided documents that aided prosecutors in their cross examination of Bankman-Fried, as well as in his own prosecution. Along with helping Bankman-Fried hide the holes in FTX's balance sheet that ultimately led to the exchange's failure, Salame was used as a conduit for Bankman-Fried to make illegal campaign contributions to help shape U.S. policy on cryptocurrencies. On the surface, Bankman-Fried mostly gave political contributions to Democrats and liberal-leaning causes, while Salame gave contributions to Republicans and right-leaning causes. But ultimately the funds that Salame used for those contributions came from Bankman-Fried. The judge also chastised Salame for pulling $5 million in cryptocurrencies out of FTX as the exchange was failing. "You tried to withdraw tens of millions more," Kaplan said. "It was me first. I'm getting in the lifeboat first. To heck with all those customers."

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An anonymous reader quotes a report from Wired: Two years ago when "Michael," an owner of cryptocurrency, contacted Joe Grand to help recover access to about $2 million worth of bitcoin he stored in encrypted format on his computer, Grand turned him down. Michael, who is based in Europe and asked to remain anonymous, stored the cryptocurrency in a password-protected digital wallet. He generated a password using the RoboForm password manager and stored that password in a file encrypted with a tool called TrueCrypt. At some point, that file got corrupted and Michael lost access to the 20-character password he had generated to secure his 43.6 BTC (worth a total of about [...] $5,300, in 2013). Michael used the RoboForm password manager to generate the password but did not store it in his manager. He worried that someone would hack his computer and obtain the password. "At [that] time, I was really paranoid with my security," he laughs. Grand is a famed hardware hacker who in 2022 helped another crypto wallet owner recover access to $2 million in cryptocurrencyhe thought he'd lost forever after forgetting the PIN to his Trezor wallet. Since then, dozens of people have contacted Grand to help them recover their treasure. But Grand, known by the hacker handle "Kingpin," turns down most of them, for various reasons. Grand is an electrical engineer who began hacking computing hardware at age 10 and in 2008 cohosted the Discovery Channel's Prototype This show. He now consults with companies that build complex digital systems to help them understand how hardware hackers like him might subvert their systems. He cracked the Trezor wallet in 2022 using complex hardware techniques that forced the USB-style wallet to reveal its password. But Michael stored his cryptocurrency in a software-based wallet, which meant none of Grand's hardware skills were relevant this time. [...] Michael contacted multiple people who specialize in cracking cryptography; they all told him "there's no chance" of retrieving his money. But last June he approached Grand again, hoping to convince him to help, and this time Grand agreed to give it a try, working with a friend named Bruno in Germany who also hacks digital wallets. Grand and Bruno spent months reverse engineering the version of the RoboForm program that they thought Michael had used in 2013 and found that the pseudo-random number generator used to generate passwords in that version -- and subsequent versions until 2015 -- did indeed have a significant flaw that made the random number generator not so random. The RoboForm program unwisely tied the random passwords it generated to the date and time on the user's computer -- it determined the computer's date and time, and then generated passwords that were predictable. If you knew the date and time and other parameters, you could compute any password that would have been generated on a certain date and time in the past. [...] There was one problem: Michael couldn't remember when he created the password. According to the log on his software wallet, Michael moved bitcoin into his wallet for the first time on April 14, 2013. But he couldn't remember if he generated the password the same day or some time before or after this. So, looking at the parameters of other passwords he generated using RoboForm, Grand and Bruno configured RoboForm to generate 20-character passwords with upper- and lower-case letters, numbers, and eight special characters from March 1 to April 20, 2013. It failed to generate the right password. [...] Instead, they revealed that they had finally found the correct password -- no special characters. It was generated on May 15, 2013, at 4:10:40 pm GMT.

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The SEC on Thursday approved multiple spot Ethereum ETFs, including those from BlackRock, Fidelity and Grayscale. The Block reports: While the [19b-4 forms] have been approved, the ETF issuers need to have their S-1 registration statements go effective before trading can begin. The SEC has started conversations with issuers about their S-1 forms but only recently. It's unclear how long this process will take but some analysts are speculating that it could take weeks. "I think that if they work extremely hard it can be done within a couple weeks but there are plenty of examples of this process taking 3+ months historically," added Bloomberg ETF analyst James Seyffart. [...] Since the Bitcoin ETFs were approved, they have amassed an additional 207,000 bitcoin ($14 billion) on top of the 621,000 ($42 billion) bitcoin held in the Grayscale Bitcoin Trust when it converted into an ETF. However, Ethereum ETFs may struggle to get the same level of traction. Bloomberg ETF analyst Eric Balchunas estimated that the Ethereum ETFs may get 10 to 15% of the assets that their Bitcoin counterparts received. "That would put them at like $5 to $8 billion, which, again, for any normal launch in the first couple of years. That's pretty good."

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In a new blog post, Ethereum co-founder Vitalik Buterin has shared his thoughts on three issues core to Ethereum's decentralization: MEV, liquid staking, and the hardware requirements of nodes. The Block reports: In his post, published on May 17, Buterin first addresses the issue of MEV, or the financial gain that sophisticated node operators can capture by reordering the transactions within a block. Buterin characterizes the two approaches to MEV as "minimization" (reducing MEV through smart protocol design, such as CowSwap) and "quarantining" (attempting to reduce or eliminate MEV altogether through in-protocol techniques). While MEV quarantining seems like an alluring option, Buterin notes that the prospect comes with some centralization risks. "If builders have the power to exclude transactions from a block entirely, there are attacks that can quite easily arise," Buterin noted. However, Buterin championed the builders working on MEV quarantining through concepts like transaction inclusion lists, which "take away the builder's ability to push transactions out of the block entirely." "I think ideas in this direction - really pushing the quarantine box to be as small as possible - are really interesting, and I'm in favor of going in that direction," Buterin concluded. Buterin also addressed the relatively low number of solo Ethereum stakers, as most stakers choose to stake with a staking provider, either a centralized offering like Coinbase or a decentralized offering like Lido or RocketPool, given the complexity, hardware requirement, and 32 eth minimum needed to operate an Ethereum node solo. While Buterin acknowledges the progress being made to reduce the cost and complexity around running a solo node, he also noted "once again there is more that we could do," perhaps through reducing the time to withdraw staked ether or reducing the 32 eth minimum requirement to become a solo staker. "Incorrect answers could lead Ethereum down a path of centralization and 're-creating the traditional financial system with extra steps'; correct answers could create a shining example of a successful ecosystem with a wide and diverse set of solo stakers and highly decentralized staking pools," Buterin wrote. [...] Buterin finished his post by imploring the Ethereum ecosystem to tackle the hard questions rather than shy away from them. "...We should have deep respect for the properties that make Ethereum unique, and continue to work to maintain and improve on those properties as Ethereum scales," Buterin wrote. Buterin added today, in a post on X, that he was pleased to see civil debate among community members. "I'm really proud that ethereum does not have any culture of trying to prevent people from speaking their minds, even when they have very negative feelings toward major things in the protocol or ecosystem. Some wave the ideal of 'open discourse' as a flag, some take it seriously," Buterin wrote.

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An Australian computer scientist who claimed he invented bitcoin lied "extensively and repeatedly" and forged documents "on a grand scale" to support his false claim, a judge at London's High Court ruled on Monday. From a report: [...] Judge James Mellor ruled in March that the evidence Craig Wright was not Satoshi was "overwhelming", after a trial in a case brought by the Crypto Open Patent Alliance (COPA) to stop Wright suing bitcoin developers. Mellor gave reasons for his conclusions on Monday, stating in a written ruling: "Dr Wright presents himself as an extremely clever person. However, in my judgment, he is not nearly as clever as he thinks he is." The judge added: "All his lies and forged documents were in support of his biggest lie: his claim to be Satoshi Nakamoto."

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In the same way a dollar is made up of 100 cents, one bitcoin is comprised of 100 million satoshis—or sats, for short. But not all sats are made equal. Those produced in the year bitcoin was created are considered vintage, like a fine wine. Other coveted sats were part of transactions made by bitcoin's inventor. Some correspond with a particular transaction milestone. These and various other properties make some sats more scarce than others—and therefore more valuable. The very rarest can sell for tens of millions of times their face value; in April, a single sat, normally worth $0.0006, sold for $2.1 million. from Time Is Running Out in the Hunt for Rare Bitcoin [Wired; ungated]