PayPal and Samsung invest millions in crypto companies

Payment service provider PayPal and technology manufacturer Samsung are investing millions in crypto company Chaos Labs . Its managing director Omer Goldberg is already making big noises. A hack that caused $114 million in damage could easily have been prevented.

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PayPal and Samsung invest millions in crypto companies

Chaos Labs is an IT security company specializing in blockchain technology. The company was founded in 2022 by Omer Goldberg, a former member of a special forces unit in the Israeli military.

Chaos Labs recently received seed capital of 20 million US dollars. Among the 31 investors are internationally well-known names – such as the payment service provider PayPal or the technology company Samsung. Coinbase, Solana, Avalanche, Polygon and OpenSea are also involved.

PayPal even took on the role of lead investor along with Galaxy Digital. The largest market maker in the crypto industry, Wintermute, also gave money to Chaos Labs. It is not known how much capital the individual companies used.

1/ We are thrilled to announce we have secured $20M in seed funding led by @galaxyhq and @PayPal to automate on-chain risk optimization! 🔐 pic.twitter.com/gVnarbmFSk
— omer (@omeragoldberg) February 21, 2023

Chaos Labs could have prevented Mango Markets hack?

The founder and managing director of the security company uses the recent attention to make big promises . The Mango Markets hack that left $114 million in damage last October could have been easily prevented, he claims.

We have built a Web3 cloud where we can replicate all blockchains that our customers use.

Explains Goldberg. In this demarcated test area, the safety of the customers is then put through its paces. Real attack vectors can be tested and solutions can be found.

This methodology would have “100 percent” succeeded in nipping the hack in the bud, Goldberg explains. The DeFi platform had fallen victim to the notorious market manipulator Avraham Eisenberg. He manipulated the associated MNGO token, which he deposited as collateral.

The low trading volume of the token allowed for rapid price changes. Eisenberg drove the price up for a short time and was able to deposit a large sum with an unrealistic valuation. As a result, Eisenberg was able to increase his initial investment tenfold.

Chaos Labs makes its system available to already known DeFi platforms such as Aave or Osmosis. The oracle protocol Chainlink is also one of the customers as well as the trading platform dYdX.

Chaos Labs has a headquarters in New York and an office in Tel Aviv. The company’s employees were recruited mainly from Facebook, Amazon, Apple, Netflix and Google, as well as the Israeli military.

Goldberg wants to use the cash injection to provide additional functions and offers. The capital is also used to attract new employees.