Top Crypto News: This Week’s Biggest Cryptocurrency Headlines

Crypto is in a bearish rut at the moment. This week’s top crypto news shines a light on this: companies are firing employees, lawmakers are scrutinizing the industry, and tech experts are trying to dissuade Congress from accommodating crypto investing. And to ice the cake, phishing scams are back in a big way, targeting anybody who uses one of Microsoft’s (NASDAQ:MSFT) most popular products.

These stories all reflect a general slump for the market. After briefly overcoming the $30,000 mark, Bitcoin (BTC-USD) prices are being dragged down once again. Moreover, investors are forced to continue lying in wait while lawmakers decide on policy. This conversation has been a mostly quiet one since President Joe Biden’s crypto executive order back in March.

Without further ado, here are the top crypto stories from the past week.

Top Crypto News of the Week

Terraform Labs launches Terra 2.0 in attempt to keep ecosystem alive

The collapse of the Terra Classic (LUNC-USD) network last month was the biggest crypto story in a while. Now, Terraform Labs is looking to get its project back on the right path. Last Friday, it launched the Terra 2.0 (LUNA-USD) network, a completely new blockchain separate from the old one. Holders who stuck around after the collapse were able to claim new LUNA coins to help support the new ecosystem. Many exchanges participated, too, listing the coin for spot trading. However, the network has lots to overcome, especially as controversy washes over founder Do Kwon and Terraform Labs’ business practices.

Optimism’s OP crypto airdrop gets off to a rocky start

The Optimism (OP-USD) network is expanding its offerings to include a governance model. With this new addition to the layer-2’s ecosystem, developers airdropped OP governance tokens to eligible recipients early this week. The airdrop was marred by controversy. Many investors immediately turned around and sold their tokens for profit. Meanwhile, many had a difficult time obtaining any tokens at all, with the network unable to accommodate the traffic. Developers spent hours working to increase throughput. The event has led to a bit of a divide among community members over who should be able to participate in future airdrops.

A newly discovered bug in Microsoft Office puts crypto holders’ assets at risk

The U.S. Cybersecurity & Infrastructure Security Agency (CISA) discovered a vulnerability in Microsoft Office products. CISA dubs this vulnerability the Follina bug. By getting victims to open Office files containing malicious code, hackers can take over entire computer systems. This allows the hacker to create, alter and delete files at will. Blockchain security company CertiK reports that the bug particularly affects crypto holders, especially those without hardware wallets. By infiltrating a system using Follina, a hacker could gain easy access to non-custodial wallets like MetaMask and steal the assets within. With Microsoft Office enjoying over 258 million users, there are a lot of assets at risk with this exploit.

New York implements crypto-mining moratorium

New York state is cracking down on crypto mining by passing a two-year moratorium on carbon-based crypto mines. Existing crypto mining operations are allowed to continue; new mining operations can spring up, so long as they are using renewable energy to power their operation. The moratorium will allow the state to conduct its own studies into the negative effects crypto mining has on the environment. This comes after much scrutiny from environmentalists, including those upstate who have been complaining about the pollution coming from Greenidge Generation’s (NASDAQ:GREE) natural gas-burning plant at the foot of Seneca Lake.

Tech experts send warning letter to lawmakers on the dangers of crypto investing

Crypto legislation is picking up around the world. But in the U.S., it’s a slow grind toward digital money infrastructure. As Congress continues to weigh its options over digital currency policy, tech leaders across the country are advising high skepticism and the utmost caution with its ultimate decision. A letter signed by 26 tech experts from a number of institutions and companies says that crypto advocates are overblowing the safety and security of the asset class. The statement comes at a time when crypto lobbying is at an all-time high.

Blockchain companies continue to slash workforces in the face of bear market

The downturn in the crypto market is hurting investors’ portfolios, but it’s also hurting many a blockchain company’s bottom line. Now, crypto companies far and wide are beginning to cut costs wherever they can. Unfortunately, the first place these companies are doing this is in the size of their workforces. Indeed, several blockchain corporations are slashing the size of their workforce, citing the bearish market as a reason. Crypto exchanges Coinbase (NASDAQ:COIN) and Gemini are two of the largest companies doing this. Both are cutting their employment pools by 10%, with the former also rescinding all active job offers.