Crypto Guides, Knowledge & Insights

BKEX freezes withdrawals amid money laundering probe

BKEX, a cryptocurrency exchange, has temporarily suspended withdrawals following the discovery that funds on its platform were involved in money laundering, as stated in a press release on May 29. The exchange acknowledged the situation and assured users that it is cooperating with law enforcement agencies to gather evidence. The suspension of withdrawals will remain in effect for an undisclosed duration. BKEX emphasized its commitment to assisting with regulatory investigations and restoring normal operations, prioritizing the protection of users rights. Throughout the investigation, the exchange will maintain transparent and timely communication and encourages users to reach out to customer service for any additional concerns.　　BKEX users ask questions　　BKEXs decision to suspend withdrawals has sparked criticism from some users who question why all withdrawals were halted due to the actions of a few individuals. Concerns about the platforms financial stability have also arisen, considering the recent struggles faced by other centralized exchanges. However, a representative from BKEX reassured users that services would soon be restored and advised patience. At the time of writing, BKEX has not responded to WikiBITs request for comment.　　The collapse of FTX last year has heightened scrutiny on centralized exchanges. Another example is Hotbit, which recently ceased operations due

2023-05-30Deep Dive

Market Volatility Alert: ARB/TUSD Trading Pair On Binance Drops To 0.35 TUSD

The ARB/TUSD trading pair on Binance experienced a sudden drop to 0.35 TUSD, highlighting insufficient short-term trading depth. The trading volume of ARBs reached an impressive 724,000 units.　　Source: Binance　　Yesterday, an interesting development occurred in the cryptocurrency market as the ARB/TUSD trading pair on Binance experienced a sudden drop to 0.35 TUSD, according to Wu Blockchain. However, the situation swiftly rectified itself, and the pair quickly recovered to its normal price level. During this eventful period, the trading volume of ARBs reached an impressive 724,000 units, far surpassing the typical trading volume.　　This surge in trading activity highlighted the fact that the short-term trading depth of the market was insufficient to accommodate the influx of short-term trading orders. It was evident that the sudden surge in demand for ARBs had momentarily overwhelmed the available liquidity in the market. This situation often occurs in markets characterized by rapid fluctuations, where short-term trading orders can outpace the available supply or demand.　　Despite this temporary imbalance, the market managed to stabilize and return to its normal state relatively quickly. This incident serves as a reminder of the inherent volatility and unpredictability of the cryptocurrency market. Such sudden fluctuations can present both risks and opportunities for traders

2023-05-29Deep Dive

Bitcoin Soars $28,000 After US Debt Ceiling Lift Ready To Vote

Bitcoins weekly situation update showed positive signs, with the price surpassing the $28,000 threshold after the agreement to raise the debt ceiling was announced and voted on.　　After seeing the positive news from the US debt ceiling lifting and, like the market comments from the previous article, BTC recovered when it reached the support area at $25,800 and retested the $27,000 and $28,200 areas.　　Currently, in the H4 time frame, the price is close to the strong resistance area combined with the indicators that are located in the overbought area. BTC may correct slightly here. However, on the weekly time frames, the price has appeared strong reversal confirmation candles and is likely to retest the $30,000 – $31,000 area.　　BTC price in the weekly frame. Source: TradingView　　On May 28, according to local time, US President Biden said in a speech that he had reached a final agreement with House Speaker McCarthy on raising the debt ceiling and called on Congress to approve the agreement as soon as possible.　　Biden said that reaching a debt ceiling agreement was an important step forward: “This agreement averted the worst of the crisis” and “eliminated the risk of catastrophic default.” He strongly urged the House of Representatives and

2023-05-29Deep Dive

China raises red alert on NFT, what's going on?

NFT is a hot topic of particular interest in China, and the Supreme Peoples Procuratorate has raised many concerns about this digital asset.　　The NFT Red Alert of the Supreme Peoples Procuratorate of China　　On May 15, Chinas Supreme Peoples Procuratorate issued a series of warnings and comments about the NFT. The nations top regulatory body has highlighted the risks posed by the NFT market. In addition, the Supreme Peoples Procuratorate of China noted the need for a new law for NFTs due to the sharing of some properties of digital assets.　　Procuratorate Daily is the official newspaper of the Supreme Peoples Procuratorate of China. According to multiple comments posted on the agencys article, the current NFT market in China is in its early stages and lacks detailed government regulations and industry standards.　　Chinas Supreme Peoples Procuratorate warned about the NFT.　　Prosecutor Wang Xia-fen, one of the articles authors, commented that NFT trading in China poses many financial and social risks, including fraud, price manipulation, and illegal fundraising activities. legal... Mr. Wang noted some of the NFTs on the market are counterfeit and not minted on the Blockchain.　　Despite the risks, the prosecutor also acknowledged the potential of the NFT in promoting the development of Blockchain

2023-05-29Deep Dive

Gemini and Genesis seek to dismiss SEC lawsuit over defunct Earn product

On May 26, Gemini and Genesis submitted a request to the court to dismiss the SEC lawsuit related to their Earn product.　　Genesis says Earn wasnt a security　　According to Geminis lawyer, Jack Baughman, in response to the SEC lawsuit, he stated that the contract establishing the Earn program was not a security, and even if it were, the SEC would need to demonstrate that the contract was sold, which never occurred.　　Gemini collaborated with Genesis Global Capital to offer the Earn product, enabling users to earn interest on their cryptocurrency deposits through reinvestment by the providers. In their recent filing, Gemini argued that this offering constituted a lending arrangement rather than a security. Their primary argument centered around the fact that the contracts were not sold on a secondary market.　　Gemini asserted that the lending agreements they entered into should not be considered securities and requested the court to dismiss the complaint with prejudice. Baughman highlighted that Genesis has also filed a motion to dismiss the case, and Gemini is supportive of this argument.　　Earn was halted in November　　In November 2022, Genesis compelled Earn to suspend withdrawals, and subsequently, on January 10, 2023, Gemini permanently discontinued the service. Following these events, on January 12,

2023-05-29Deep Dive

Arbitrum-Based Liquidity Protocol Exploited For $7.5M

Just three days after the launch of its version 2, the Jimbos Protocol, built on the Arbitrum network, fell victim to an exploit that resulted in the loss of 4090 ETH, equivalent to $7.5 million.　　PeckShield, a renowned security firm, identified that the hack was made possible due to the protocols inadequate control over slippage for the tokens it managed.　　Hacker used $5.9 million flash loan to exploit Arbitrum-based protocol　　According to a report by PeckShield, the recent hack on the Jimbos Protocol can be attributed to the absence of proper slippage control during liquidity-shifting operations. This allowed the attacker to exploit the imbalanced price range by executing a reverse swap for profit, taking advantage of the protocol-owned liquidity.　　In order to carry out the attack, the hacker utilized a flash loan totaling $5.9 million.　　Following the incident, Jimbos Protocol took to Twitter and acknowledged the exploit, stating that they are actively cooperating with law enforcement and security experts. They have assured the public that further information will be shared as it becomes available.　　Tokens price falls 40%　　Following its launch on May 16, the Jimbos Protocol, built on the Arbitrum network, encountered a smart contract bug that rendered the protocol inoperable. In response, users were advised

2023-05-29Deep Dive

Digital Currency Group Shuts Institutional Trading Platform, Cites Crypto Crisis

Digital Currency Group (DCG), a prominent digital-asset conglomerate, has announced the closure of its institutional trading division, TradeBlock, attributing the decision to the challenging conditions prevailing in the cryptocurrency market. TradeBlock specialized in offering institutional investors trade execution, pricing, and prime brokerage services. As per Bloombergs report, DCG plans to wind down its prime brokerage subsidiary, TradeBlock, by the end of this month.　　Prolonged crypto winter season　　Digital Currency Group (DCG) has announced the closure of its institutional trading platform, citing several factors including the broader economic conditions, an extended period of downturn in the crypto market, and the uncertain regulatory landscape for digital assets in the United States. The decision to shut down the institutional trading side of the business follows the earlier closure of DCGs wealth-management division headquarters, which was necessitated by the bankruptcy of Genesis, its lending business.　　Prior to the closure, Digital Currency Group engaged in negotiations with creditors associated with its bankruptcy lending business, Genesis. These discussions played a significant role in the companys decision to shut down its subsidiary, TradeBlock.　　In addition, Digital Currency Group (DCG) disclosed losses surpassing $1 billion in the previous year, stemming from the ripple effect of the FTX collapse and the overall downturn

2023-05-26Deep Dive

Japan Gears Up To Enforce AML Measures For Crypto

Japan has announced the implementation of new anti-money laundering (AML) measures for cryptocurrencies to combat increasing fraudulent activities in the industry. 　　Japan Revises AML Measures, Tightens Crypto Regulation　　In an effort to combat the rise in crypto-related crimes and ensure the integrity of its financial system, Japan will be enforcing strict anti-money laundering (AML) measures across the countrys crypto industry. These measures, which were first proposed earlier this year, are set to take effect from June 1st.　　There has been an ever-increasing rate of illicit activities like money laundering and terrorism financing, especially in crypto. With Japan being such a significant player in the global cryptocurrency market, the countrys cabinet is seeking to address potential risks associated with the anonymity and decentralized nature of digital assets.　　The country‘s existing legal framework has come under criticism by the international financial watchdog, Financial Action Task Force (FATF). As a result, the country’s cabinet revised the relevant laws in December, focusing on monitoring the movement of illicit funds under the guise of legal crypto transactions.　　New Measures Include “Travel Rule” 　　The enforcement of the “Travel Rule” is a significant aspect of the new measures aimed at ensuring more precise monitoring of illicit proceeds. The proposal of the

2023-05-26Deep Dive

Fintoch securities fraud warning from Singapore

Fintoch has received a securities fraud warning from Singapore. The Monetary Authority of Singapore added Fintoch to its Investor Alert List on May 4th. MAS cites Fintoch‘s website domains as “fintoch.com” and “fintochonline.com”. The first website is Fintoch’s official website. The second website belongs to Fintoch promoter Shaikh Noorul Amin.　　The Investor Alert List provides a list of persons who, based on information available to MAS,　　i) may be or may have been wrongly perceived as being licensed or in any other way authorised or regulated by MAS;　　ii) have made an offer of units in a business trust or collective investment scheme which may be or may have been wrongly perceived as being authorised, recognised or registered by MAS;　　iii) have made an offer of investment which may be or may have been wrongly perceived as being made in or accompanied by a document lodged or registered with MAS. As a passive returns investment scheme, points two and three apply to Fintoch. Fintoch is not registered to offer securities in any jurisdiction. The company commits securities fraud and operates illegally the world over.　　The reason for this is Fintoch is a Ponzi scheme. Fronted by US actor Mike Provenzano, playing Fintoch CEO “Bobby Joe

2023-05-26Deep Dive

Negotiations Show Positive Signs

Bitcoin (BTC) recorded a slight recovery towards the $26,500 level following positive announcements from debt ceiling negotiations.　　24h BTC price chart. Source: CoinMarketCap　　On May 25, local time, White House Press Secretary Karina Jean-Pierre said in a briefing that day that White House negotiators had had productive discussions with the teams House Speaker McCarthy on the debt ceiling issue.　　Mr. Pierre said partisan views on budget priorities remained divided, but representatives from both sides understood that an agreement would need a plan that would work for both sides.　　While the White House and US Congress say “progress” for a while and “no deal” for a while, the US Treasury Department has begun preparations for the eventual triggering of the debt ceiling.　　US Treasury officials are notifying various departments about possible changes to the payment process when the debt ceiling is activated and possible responses, according to the reports of people familiar with the matter.　　Additionally, as reported by Golden Ten, the US Treasury Departments cash balance has fallen below US$50 billion and may be empty as early as next month. US House of Representatives Speaker McCarthy said the negotiators would stay on Capitol Hill and continue working over the weekend.　　As investors watch the ongoing debt ceiling

2023-05-26Deep Dive

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