Mixin and Sun’s HTX hack; Binance exits Russia, Weekly Recap

By Street Asset On Oct 1, 2023 0 0

This week, crypto markets were in turmoil. Justin Sun’s HTX and Mixin Network fell victim to hacks. Binance left Russia while MicroStrategy augmented its BTC stash.

A flurry of hacks and scams

The crypto scene witnessed a slew of security breaches and developments around scams throughout this week. Crypto exchange Upbit encountered a challenge involving counterfeit tokens amounting to $3.4 billion in trades.

The prominent South Korean platform witnessed the proliferation of counterfeit tokens masquerading as Aptos (APT) tokens. These tokens, identified as ‘ClaimAPTGift’ coins, attempted to infiltrate the exchange, causing a disruption.

In response to the growing number of crypto-related scams, Chase U.K. opted this week to take a precautionary stance by prohibiting all cryptocurrency payments.

Commencing on Oct. 16, they will implement a categorical restriction on any transactions related to cryptocurrencies. Evidently, Chase U.K. has reservations regarding the cryptocurrency ecosystem, primarily due to concerns surrounding fraudulent activities.

HTX suffers $8 million hack

HTX (formerly Huobi) experienced an unwelcome intrusion by hackers, resulting in the theft of 500 Ether (ETH) with an approximate value of $8 million. In response, HTX assumed responsibility for compensating their affected clientele.

Justin Sun, HTX’s advisory board member, noted that the funds represent a small portion of the exchange’s $3 billion reserves. He confirmed that HTX has offered a substantial 5% reward, worth $400,000, to the hackers if they are willing to return the stolen assets.

HTX @HTX_Global has suffered a loss of 5,000 #Eth ($8 million USD) due to a hacker attack. HTX has fully covered the losses incurred from the attack and has successfully resolved all related issues. All user assets are #SAFU and the platform is operating completely normally.

— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 25, 2023

Following the regrettable $8 million security breach, Sun took the initiative to introduce a safeguard mechanism known as the SAFU fund. The fund functions as a protective buffer, poised to mitigate potential security challenges that may arise in the future.

Mixin exploited for $200 million

Mixin Network, a prominent player in the blockchain scene, boasting connectivity to 48 networks, temporarily suspended its deposit and withdrawal services in the wake of a significant $200 million breach. A hacker infiltrated the database of their cloud service provider, leading to the theft.

Mixin Network adopted a vigilant stance, putting a temporary halt on deposits and withdrawals while ensuring that the internal crypto transactions within their network continue unabated.

Binance officially leaves Russia

Crypto exchange Binance exited Russia. CommEX is set to take over the local business. This transition will span over a year, ensuring a gradual exit. Binance assured that Russian users’ funds remain secure. Noah Perlman, Binance’s Chief Compliance Officer, attributed this move to regulatory challenges.

Afterward, CommEX dispelled rumors surrounding their acquisition of Binance’s Russian business. They emphasized that Binance does not own them, even though they have former Binance employees on their team. Despite this rebuttal, they kept the identities of their execs confidential.

MicroStrategy augments BTC stash

Michael Saylor’s MicroStrategy continued its vigorous Bitcoin acquisition strategy. From Aug. 1 to Sept. 24, they acquired 5,445 BTC, amounting to a $147.3 million investment.

As a result, its balance sheet now boasts an impressive $4.6 billion worth of Bitcoin. Recall that this BTC strategy commenced in 2020, driven by a desire to diminish cash holdings and safeguard against inflation.

Russia looks to blockchain

Speaking at the Moscow Financial Forum, Russian Prime Minister Mikhail Mishustin said that the Russian government, alongside the Bank of Russia, is developing a blockchain-based system for international settlements using digital financial assets.

His statement comes just a few months after he visited China for a two-day trip, during which he highlighted the increasing trade and investment connections between the two nations. Since 2022, the U.S. and European Union imposed strict economic sanctions on Russia due to the war in Ukraine.

Global regulatory and enforcement actions

U.S. Representative Don Beyer unveiled a legislative effort in the form of the Off-Chain Digital Commodity Transaction Reporting Act.

Under the bill, trading platforms will divulge transaction data to a designated repository, officially registered with the Commodity Futures Trading Commission (CFTC). The aim of the bill is to protect investors against fraud and manipulation.

Meanwhile, Hong…