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    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    Enhancing Security in Online Gambling with Blockchain Technology

    Enhancing Security in Online Gambling with Blockchain Technology

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    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

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    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

    The Future of Gambling: How Casino Sites Are Leveraging Web3

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    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

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    Experience to Earn: Everdome’s Metaverse Frontier

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    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

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    CryptoPunks and Pudgy Penguins Draw Major Sales

    NFT Sales Spike in July—but Still Miles Below 2024’s Highs

    NFT Sales Spike in July—but Still Miles Below 2024’s Highs

    Ethereum Collections Lead NFT Sales Today

    Ethereum Collections Lead NFT Sales Today

    how NFTs became a global brand and a Web3 “social currency”

    how NFTs became a global brand and a Web3 “social currency”

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Labubus have succeeded in every way that NFTs have failed

    Labubus have succeeded in every way that NFTs have failed

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    NFT sales surge to $574 million in July, second-highest in 2025

    NFT sales surge to $574 million in July, second-highest in 2025

  • Gaming
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    Cracking China’s Blockchain Gaming Market: Why Shrapnel Chose GalaChain

    Shrapnel to Leave Avalanche in New Partnership with Gala Games

    Shrapnel to Leave Avalanche in New Partnership with Gala Games

    Google to Pit Top AI Models Against Each Other in Live Chess Tournament

    Google to Pit Top AI Models Against Each Other in Live Chess Tournament

    Blockchain Bookmakers: A New Era of Fair and Secure

    Blockchain Bookmakers: A New Era of Fair and Secure

    Ethereum NFT Sales Surge 56% in July 2025 as Alt-Chains Lose Market Share

    Ethereum NFT Sales Surge 56% in July 2025 as Alt-Chains Lose Market Share

    The Biggest Games Releasing in August 2025

    The Biggest Games Releasing in August 2025

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    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    Early Off the Grid Skin Holders Are Cashing In – Will You?

  • Blockchain
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    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

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    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

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    SoonVerse Partners with Arris to Enhance User Experience

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

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    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

  • AI
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    Bitcoin Miner Bit Digital Diversifies Into AI for ‘Substantially Higher Margin’ Than Mining

    ETH Daddy Discusses Ethereum and AI

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    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

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Home Ethereum

‘Ethereum L2s can steal user funds right now’ – Are the allegations true?

April 17, 2024
in Ethereum
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‘Ethereum L2s can steal user funds right now’ – Are the allegations true?
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Ethereum Looks Ready To Break Out Of 4-Year Consolidation, Analyst Says Price Will ‘Go Insane’

Binance loses 300K ETH – Here’s what it means for bulls eyeing $2.7K

  • Exec claims Ethereum L2s can “steal user funds.”
  • Industry figures propose multi-signatories to eliminate single points of failure. 

In a surprising disclosure, it has been revealed that the safety of user funds in Ethereum [ETH] L2s is not guaranteed.  

According to founder and CIO of crypto-focused Cyber Capital, Justin Bons, L2s like Arbitrum [ARB], Optimism [OP], Base, Blast, Starknet [STRK], and ZkSync can all “steal user funds.”

“Arbitrum, Optimism, Base, Blast, Starknet & ZkSync all have admin keys! All of the top L2s can steal all user funds right now.” 

This is even more disturbing because, according to VanEck analysis, the space is projected to reach a $1T value by 2030. 

The exec compared the current state of L2s to legacy banking and took a swipe at Ethereum for being a “lip service” to decentralization. 

“If this is considered safe, then we might as well go back to legacy banking. ETH gives decentralization lip service, but actions speak louder than word”

Reaction to safety concerns in Ethereum L2s

Solana [SOL] co-founder Anatoly Yakovenko suggested a “multi-sig” shared sequencer as a solution to the “single admin key.” He stated, 

“Each one should volunteer a tribute to be a member of the multi-sig for the shared sequencer.”

Multi-sig means having multiple signatories to increase decentralization, transparency, and eliminate the risk of a “single admin key.” 

Raj Gokal, another Solana co-founder, called for an expedited solution,

“Hope this gets fixed soon…”

However, the founder and CEO of Helius Labs, a Solana developer platform, vouched for Ethereum [ETH] L2s and preferred them over Binance [BNB], Cardano [ADA], or Ripple [XRP]. 

See also  Ripple CTO asks for 'motive of XRP manipulation' amidst allegations

He reiterated,

“Fine, I’ll say something positive about L2s: I’d be much happier if they were in the top 10 instead of Cardano, XRP, and BNB.”

Asked whether Solana should consider some L2s as well, the Helius Labs’ exec quipped, 

“Could make sense in some cases.” 

A recent AMBcrypto analysis established increased transactions within L2s post-Dencun upgrade, which could tip ETH’s value. 

However, ETH faced key headwinds, including the SEC’s silence on spot ETFs and ongoing Middle East tensions. At the time of writing, it was barely holding above $3K. 

Next: Ahead of Bitcoin halving, will U.S. pay ‘the price of crypto regulation’?

Tags: AllegationsEthereumfundsL2sstealtrueuser

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

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Tezos 2023 Outlook: An Overview of Tezos (XTZ)

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UK risks regulating NFTs the wrong way, says Mintable CEO

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How to Earn Keys to Boost Your HMSTR Airdrop

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Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

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Bitcoin Miner Marathon Tests BTC Mining With Methane Gas From Waste Landfill

Bitcoin Miner Marathon Tests BTC Mining With Methane Gas From Waste Landfill

November 2, 2023
What Bitcoin’s post-halving history tells us about BTC’s 2024 prices

What Bitcoin’s post-halving history tells us about BTC’s 2024 prices

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Bitcoin Mining Stocks Soar Amid Takeover Frenzy

Bitcoin Mining Stocks Soar Amid Takeover Frenzy

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Is Bitcoin Halal? – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

Is Bitcoin Halal? – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

November 18, 2023

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