NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Litecoin Founder Slams Ethereum’s Fastest Growing Use Case in DeFi Hack’s Wake

Rick Delafont
Rick Delafont
5 years ago
2 mins read
defi litecoin ethereum

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Following a recent DeFi smart contract compromise, Charlie Lee has attacked the sector for being centralised. The Litecoin founder called the decentralised finance industry, growing fastest on Ethereum, “decentralization theatre”.

The most recent application to succumb to a smart contract security breach is the non-custodial crypto margin trading service Fulcrum. Following the compromise, developers at Fulcrum have frozen the affected contract.

Is it Really Decentralised if Someone Can Shut it Off?

Litecoin Founder Charlie Lee has criticised the rapidly expanding DeFi sector for being centralised. Lee called the industry “decentralization theatre” in response to a recent smart contract compromise.

Over the weekend, an attacker managed to breach the Ethereum-based margin trading application, Fulcrum. Although not officially disclosed, some believe as much as $350,000 in ETH is missing.

1/ ⚠️ Mini-thread on the Fulcrum situation ⚠️
TLDR:
– @bzxHQ took Fulcrum down for maintainence late last night
– Shortly after, team member Kyle Kistner disclosed that an exploit caused the loss of a portion of Fulcrum's ETH
– Fulcrum contract is frozen, remaining funds are safe pic.twitter.com/TLUnbxLooh

— DeFi Pulse (@defipulse) February 15, 2020

As detailed in the above tweet, developers from bZx have since disabled most elements of the impacted smart contract. The team is yet to deliver an official report on the situation but says the remaining funds are safe.

It stated that it would publish more details later today:

https://twitter.com/bzxHQ/status/1229207510273282048

 

Largely based on Ethereum, DeFi refers to a growing network of decentralised financial applications. They offer a range of services like those found in traditional markets. Built on public blockchain networks, applications like Synthetix or MakerDAO seek to promote greater financial inclusion.

Litecoin founder Charlie Lee was amongst the voices critical of the handling of the recent security breach. Calling DeFi “the worst of both worlds”, he attacked the blatant lack of decentralisation on display:

This is why I don't believe in DeFi. It's the worst of both worlds. Most DeFi can be shut down by a centralized party, so it's just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization.

So how is this better than what we have now? https://t.co/F1HMSeqb6q

— Charlie Lee Ⓜ️🕸️ (@SatoshiLite) February 16, 2020

Lee stated that if a developer can terminate some aspect of an application, it’s not really decentralised at all. However, because decentralised financial applications purport to be leaderless systems, those trusted with the all powerful kill switches cannot actually do anything following a hack:

“… yet no one can undo a hack or exploit unless we add more centralization.”

Ethereum and Other Smart Contracts Prone to Compromise

Often incredibly complex pieces of programming, smart contracts have fallen victim to compromise many times before. Being financial by their very nature, they provide an enticing honeypot to hackers.

Right at the beginning of its very existence, Ethereum itself suffered such a compromise. The DAO incident saw around $50 million in funds compromised in summer 2016.

This led to a hard fork to return missing funds to investors and created the cryptocurrency Ethereum Classic (ETC). The latter digital asset representing those wanting to continue building on and using Ethereum but who disagreed with the arguably centralised handling of the situation.

 

Related Reading: This Simple Factor Shows Bitcoin’s Selloff Not as Bearish as it Seems

Featured Image from Shutterstock.
Tweet123Share212ShareSend
Rick Delafont
Rick Delafont

Rick Delafont

Based in Europe, Rick has written about the cryptocurrency industry since 2016. He was first drawn to Bitcoin as a means of payment but quickly became fascinated by its wider potential implications. His interests lie in the political, economic, and social impact of the unfolding digital asset revolution.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin Moves Up, Dogecoin Surges Above Key $0.17 Mark; Token6900 Set to Explode

Bitcoin Moves Up, Dogecoin Surges Above Key $0.17 Mark; Token6900 Set to Explode

Bitcoin climbed above $109K, triggering a surge across the markets: Ethereum ($ETH) – up 4.65% XRP ($XRP) – up 3.86%...

Aaron Walker 5 hours ago

Smart Contract Lock and CertiK Audit: The Driving Factors Behind $FUN’s Breakout

Web3 gaming’s FUNToken emerges with strengthened fundamentals following smart contract lock implementation and CertiK audit clearance. Trading at $0.009894 as...

News BTC 5 hours ago
Solana koers stijgt 12% in een week: golden cross wijst op $172

Solana koers stijgt 12% in een week: golden cross wijst op $172

De Solana koers laat de afgelopen dagen weer interessante bewegingen zien. SOL laat de top 10 crypto’s achter zich en...

Lars Diederiksen 5 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Dogecoin price news

Dogecoin’s Quiet Setup Could Detonate Shorty, Says Analyst—Here’s The Target

Jake Simmons 20 minutes ago
Bitcoin

The Silent Bitcoin Accumulation: Public Companies’ Surprising H1 2025 Lead

Christian Encila 3 hours ago

Ethereum Stagna: I Dati On-Chain Mostrano Accumulo da Parte delle Whale

clararosati 4 hours ago

Premium Sponsors

Press Releases

  • The smartest way to make money in 2025: Invest in cloud...

    1 hour ago
  • 仮想通貨プレセール注目|ビットコイン、2025年第3・第4四半期が最良期と予測

    ...

    1 hour ago
  • Bitcoin vs. Gold: Which Is the Best Investment In 2025?

    2 hours ago
  • Profit of $5,735, senior trader uses Ripple (XRP) to open...

    2 hours ago
  • 仮想通貨おすすめ|SPX6900のように急成長が期待される最新ミームコインプレセール

    ...

    3 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.