Blockchain Bites: Is DeFi an Inside Deal?

A Lightning-based derivatives platform took in pre-seed capital, a new blockchain analyst will try to track down missing funds from the defunct QuadrigaCX exchange and CoinDesk looks at how retail interest in DeFi compares to the infamous ICO bubble.

Top shelf

DeFi interest?
Retail interest in decentralized finance (DeFi) applications remains quite low compared to the initial coin offering (ICO) bubble, measured by Google search queries, CoinDesk’s Omkar Godbole reports. Indexed to the peak of searches for “ICO,” searches on Google Trends for the word “DeFi” currently return a value of 18, indicating the retail crowd is as interested in open-source finance as they were in ICOs during the latter’s boom. Put in context, these searches come amid a period when the total value locked into the DeFi ecosystem has increased 1,300% to above $9 billion this year, approximately 66% higher than the $5.4 billion raised by ICOs in 2017. This disparity between searches and capital may indicate that DeFi’s growth is being driven by savvy investors.

Quadriga update
In the latest legal update to the 18-month long QuadrigaCX saga, Canadian law firm Miller Thomson has hired a consultancy firm to perform blockchain analytics as it works to return $200 million in crypto customers are said to have lost, after the exchange’s chief executive died under mysterious circumstances. The firm, Kroll, will pair with its “strategic partner” Coinfirm to analyze a subset of transaction data, CoinDesk’s Nikhilesh De reports, for a $50,000 CAD ($38,000 U.S.) fee. Miller Thomson noted it could not begin the process of disbursing funds until Ernst & Young (EY) finalizes its record of who is owed what and the Canada Revenue Agency has completed its audit of the exchange. So far, about $46 million CAD (around $35 million U.S.) has been recovered.

Fraud accusations
Yaroslav Shtadchenko, former project manager at now defunct crypto fund Bitsonar, has formally accused his former…

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