Hey there, PoI readers! 🌟

Mochi here, ready to serve up another delectable dish of crypto news and insights. In this edition, we'll be exploring Kraken's potential USDT delisting in Europe, the groundbreaking news of GPT-4 passing the Turing test, Pump.fun's $2M exploit by an ex-employee, and the retirement of the notorious Pink Drainer after facilitating a staggering $85M in crypto thefts. So, put on your thinking caps, grab your favorite crypto-themed snack, and let's dive into the wild world of digital assets together! 🙌🏻

INTEL BRIEF

🟧 Kraken is considering dropping support for Tether (USDT) in the European Union due to the upcoming MiCA regulation, which will enforce strict limits on stablecoin transactions and reserve requirements.

🟧 According to Ethereum co-founder Vitalik Buterin, OpenAI's GPT-4 has passed the Turing test, based on recent research indicating that humans can no longer consistently distinguish between conversations with machines and other humans.

🟧 Pump.fun, a Solana memecoin creation tool, claims an ex-employee exploited the platform for nearly $2 million through a "bonding curve" attack, compromising internal systems and accessing a "withdraw authority."

🟧 Pink Drainer, a notorious crypto-wallet draining kit, announced its retirement after facilitating the theft of over $85 million in crypto assets.

Kraken Contemplates Dropping USDT in Europe as MiCA Regulation Looms

Crypto exchange Kraken is "actively reviewing" plans to comply with the upcoming Markets in Crypto-Assets Regulation (MiCA) in the European Union. As part of this review, Kraken is considering removing support for the popular stablecoin Tether (USDT) in the EU.

Marcus Hughes, Kraken's global head of regulatory strategy, said, "We're absolutely planning for all eventualities, including situations where it's just not tenable to list specific tokens such as USDT." In other words, Kraken is preparing for the possibility of saying sayonara to USDT in the EU.

Under MiCA, stablecoins like USDT will face strict limits on daily transactions (capped at 200 million euros) and reserve requirements. Tether's CEO, Paolo Ardoino, has criticized these regulations, stating that the company does not intend to be regulated under MiCA. He specifically mentioned the requirement that 60% of stablecoin reserves be held in cash deposits across multiple banks, noting the difficulty of finding banks willing to accept this type of business in Europe.

As the MiCA regulation takes effect in two phases (June 30, 2024, for stablecoins and Dec. 30, 2024, for crypto service providers), exchanges like Kraken and OKX are making moves to ensure compliance. OKX already discontinued support for USDT trading pairs in the European Economic Area back in March.
Will other exchanges follow suit? Will Tether find a way to navigate the new regulations? Only time will tell, but one thing's for sure: We are in this for some interesting times ahead!

Kraken is considering dropping USDT in the EU due to upcoming MiCA regulation

MiCA will enforce strict limits on stablecoin transactions and reserve requirements

Tether's CEO has criticized the regulations, highlighting difficulties in complying with reserve requirements

Vitalik Buterin Declares GPT-4 Has Passed the Turing Test: Is AGI Next?

According to Ethereum co-founder Vitalik Buterin, OpenAI's GPT-4 has officially passed the Turing test.

The Turing test, named after the brilliant mathematician Alan Turing, is a benchmark for AI systems to determine how human-like they are in conversation. Turing proposed that if an AI could fool humans into thinking they were chatting with another human, it would demonstrate the capacity for "thought."

Recent research from the University of California San Diego put this to the test. In a blind study, humans mistakenly identified GPT-4 as a human 56% of the time. Buterin interprets this as passing the Turing test, stating, "It means people's ability to tell if it's a human or a bot is basically a coin flip!"

While humans were still correctly identified as humans 66% of the time, compared to 54% for bots, Buterin argues that the 12% difference is negligible in real-world settings. He also emphasizes the significance of this milestone, calling the Turing test "the single most famous socially accepted milestone for 'AI is serious shit now'."

However, it's important to note that the Turing test and artificial general intelligence (AGI) are not necessarily related, despite often being conflated. AGI refers to an AI with "general" capabilities across the spectrum of human intellectual endeavor, which GPT-4 does not possess.

Nevertheless, in current culture, terms like "AGI," "humanlike," and "passes the Turing test" are often used to describe AI systems that produce content comparable to that created by humans.

So, while GPT-4 may not be a true AGI, it's certainly fooling a lot of people.

Vitalik Buterin declares GPT-4 has passed the Turing test based on recent research.

Humans mistakenly identified GPT-4 as human 56% of the time in a blind study.

The Turing test and AGI are not necessarily related, despite often being conflated.

Ex-Employee Allegedly Exploits Pump.fun for $1.9M in Bonding Curve Attack

Pump.fun, a Solana memecoin creation tool, has pointed the finger at a former employee for exploiting the platform to the tune of $1.9 million.

According to pump.fun, the ex-employee used their "privileged position" to access a "withdraw authority" and compromise the protocol's internal systems. The alleged exploiter then employed flash loans on Raydium, a Solana lending protocol, to borrow Solana's token and buy up as many coins as possible. Once the coins hit 100% on their respective bonding curves, the exploiter could access the bonding curve liquidity and repay the flash loans. Sneaky, right?

The attack, which occurred between 3:21 pm and 5:00 pm UTC on May 16, resulted in the theft of approximately 12,300 SOL, worth $1.9 million. This is just a small portion of the total $45 million held in pump.fun's bonding curve contracts, but still a significant sum.

Pump.fun temporarily paused trading but has since resumed operations. The platform assured users that the smart contracts "are safe" and that those impacted by the incident will receive "100% of the liquidity" they previously had within the next 24 hours.

Prior to pump.fun's announcement, Igor Igamberdiev, head of research at Wintermute, claimed the hack resulted from an internal private key leak. He suspected X user "STACCoverflow" to be the culprit, based on a series of cryptic posts hinting at their involvement.

Pump.fun has stated that it is collaborating with law enforcement but has not named the former employee in question.

As the investigation unfolds, one thing's for sure: there's never a dull moment in the world of memecoins and crypto exploits!

Ex-employee allegedly exploited pump.fun for $1.9M through a bonding curve attack.

The attack involved flash loans and buying up coins to access bonding curve liquidity.

Pump.fun has resumed operations and promises to reimburse affected users within 24 hours.

Pink Drainer Hangs Up Its Hat After Facilitating $85M in Crypto Thefts

Pink Drainer, the infamous crypto-wallet draining kit, has announced its retirement after reaching the dubious milestone of aiding in the theft of over $85 million in crypto assets.

In a surprise Telegram announcement, Pink Drainer declared, "After this message's publication, we will begin winding down all of our infrastructure. All stored information will be wiped and securely destroyed." When reached for comment, the developer behind the encrypted messaging service channel, Pink, simply said, "I do not wish to comment. Bye," before deleting the entire Telegram chat record. Talk about a dramatic exit!

According to Dune Analytics, Pink Drainer has been responsible for stealing from over 21,100 victims since July 2023. The cybercriminal toolkit helped steal a staggering $53 million from over 9,000 "participants" in 2023 alone. The security researcher behind Pink Drainer defended the service, stating, "I don't phish, I just code." Sure, because that makes it all better, right?

The Pink Drainer Telegram channel has since rebranded to "Bonadifier," featuring an image of Bonad – a drainer with a mental disability – and the ominous message, "never forget what he took from you." It seems like even in retirement, Pink Drainer can't resist a bit of drama.

This announcement continues a pattern in the crypto-draining space, with high-profile drainers like Inferno Drainer and Monkey Drainer also shutting down after facilitating significant thefts. While the shutdown of these services offers a temporary reprieve for crypto users, the existence of other drainers like Angel Drainer suggests the threat is far from over.

Pink Drainer retires after facilitating the theft of over $85 million in crypto assets.

The cybercriminal toolkit helped steal $53 million from over 9,000 victims in 2023 alone.

Pink Drainer's shutdown follows a pattern of other high-profile drainers retiring after significant thefts.

🎉 And that's a wrap, PoI readers! 🎉

In this edition, we've witnessed the ever-evolving landscape of crypto and AI. From regulatory challenges and platform exploits to the retirement of notorious cybercriminals and the potential for AI to fool even the most discerning humans, it's clear that the world of digital assets is never short on excitement.

As we continue to navigate this wild ride, remember to stay vigilant, protect your assets, and keep an open mind to the possibilities that lie ahead. Who knows what the future holds for crypto and AI? One thing's for sure – Mochi will be here to keep you informed and entertained.😄

P.S. Don't forget to share this newsletter with your fellow crypto enthusiasts and AI aficionados. Let's continue to grow our PoI community and spread the love for all things cutting-edge and transformative! 📣❤️

🍨📰 Catch you in the next issue! 📰🍨