Crypto Exchange News & Updates

Binance is still operating normally despite months of FUD

Toward the end of 2022, the market saw some FUD (fear, uncertainty, and doubt) about Binance, one of the worlds largest and most popular cryptocurrency exchanges.　　Concerns arose from a variety of sources, including social media posts and internet articles, which raised questions about the exchanges security and the likelihood of customer cash being compromised.　　Lets take a closer look at these latest worries, study the audit reports that have been issued, and explain why the FUD is unfounded and Binance is safe.　　Summary of the Concerns　　A succession of social media posts and internet publications claiming that the exchange is not safe and that user funds are at risk has been one of the concerns surrounding Binance.　　Various events, like the Celcius bankruptcy, the high-profile fall of FTX, temporary withdrawal pauses, and the recent increase of phishing attacks targeting cryptocurrency exchanges, have exacerbated these assertions.　　Despite these reservations, it is crucial to remember that Binance has a long history of security and has taken several precautions to safeguard the safety of its customers assets. For example, the exchange keeps the majority of its users assets in offline cold storage wallets, which are not connected to the internet and are therefore less vulnerable to hacker assaults.　　Binance

2023-01-28Deep Dive

BlockFi permitted to pay $10M in staff bonuses in spite of bankruptcy

According to a Jan. 27 filing, bankrupt crypto lending startup BlockFi has been granted court authority to pay roughly $10 million in staff bonuses.　　The term “bonus” is not used in the file. Instead, it refers to an employee retention program and describes additional incentives above and above base pay.　　BlockFi will pay up to $9.98 million to a few remaining employees under the program. Employees will receive the money in three installments. There will be two payment tiers: one that pays employees 42.5% of their basic income and one that pays employees 9% of their base salary.　　According to todays filing, BlockFi has been “allowed, but not instructed” to implement this staff retention program. Though the company does not appear to be obligated to pay all or any of its employees, if it decides to proceed with the retention plan, it must execute the last of the three installments within 12 months of court approval.　　The number of employees eligible for the incentive was not specified in the court filing. According to recent sources, the firm currently employs around 125 people.　　BlockFi initially justified its request by claiming that due to fierce competition, its staff would most certainly be hired elsewhere. According to statements

2023-01-28Deep Dive

Binance Introduces Function for API Users to Prevent Self Trading

Binance, a cryptocurrency exchange, has developed a new tool to assist its API users in preventing self-trading on its site.　　The service will be available to Binance API users beginning January 26. The exchanges website and app users will be unaffected.　　Binance further stated that the tool is optional and that users who choose not to utilize it will have no consequences.　　The Self-Trade Prevention (STP) function prevents the execution of orders that might result in a self-trade, which is an activity in which users trade with one other to create the perception of greater activity than there is. As a result, self trading is regarded as a type of market manipulation.　　Binance API is a service provided by the exchange that allows other trading firms to connect to Binances computers, gaining access to market data and enabling trades.　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

2023-01-25Deep Dive

Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing

According to bankruptcy court filings submitted by interim CEO Derar Islim, cryptocurrency lending firm Genesis held $5.1 billion in liabilities in the weeks following its withdrawal halt last November.　　In his first-day motion in the United States Bankruptcy Court for the Southern District of New York, Islim detailed Genesis financial situation prior to its restructuring. Genesis HoldCo, Genesis Global Capital LLC, and Genesis Asia Pacific PTE. LTD filed for Chapter 11 bankruptcy protection late Thursday, becoming the third crypto business to be swept up in the immediate aftermath of FTXs downfall.　　Those entities may have been less harmed by direct losses to FTX and sister company Alameda than by the “run on the bank” that Islim claimed their failure triggered. Customers requested repayment of $827 million in loans, pushing Genesis lending units to halt withdrawals.　　“At the same time, Holdcos corporate parent, Digital Currency Group (DCG), and its various subsidiaries, including DCG International Investments Ltd., were impacted by the market turmoil and did not have the liquidity to repay the Company on certain loans, adding pressure to the Debtors balance sheets,” Islim explained.　　At least part of the liquidity crisis started months earlier, thanks to Genesis $1.2 billion loss to crypto hedge fund Three

2023-01-21Deep Dive

The Next Bankruptcy Domino May Be Genesis

Genesis, which halted customer withdrawals two months ago, has become the latest crypto industry participant to declare bankruptcy.　　Bloomberg reported on Thursday that the business held secret talks with various creditor groups. The loan division has been languishing since the collapse of FTX, where it had $175 million in locked funds, and had told potential investors that it would go bankrupt if it couldnt secure new cash.　　Genesis was “at all costs” attempting to avoid insolvency, which they defined as “admirable but pricey.”　　Genesis parent business, Digital Currency Group, was recently accused by Gemini of making false promises concerning Genesis solvency. Cameron Winklevoss, co-founder of Gemini, has asked DCGs board to remove CEO Barry Silbert, claiming he deceived Gemini and prevented its consumers from accessing $900 million held in a Genesis-related product.　　However, Silbert refuted this assertion, claiming that DCG owed Genesis $447.5 million in addition to $78 million of bitcoin maturing in May of this year. Genesis is also owing another $1.1 billion promissory note, which matures in 2032, he claimed.　　He further stated that DCG has not borrowed funds from Genesis since May 2022 and is current on all existing debts.　　Nonetheless, DCG reportedly warned shareholders this week that dividends will be suspended in

2023-01-19Deep Dive

Binance named among Bitzlato top 3 receiving counterparty

According to a US Treasury Financial Crimes Enforcement Network order, Binance is one of Bitzlatos top three receiving counterparties (FinCEN).　　On January 18, US officials filed enforcement measures against the little-known exchange, accusing it of assisting the laundering of $700 million. Anatoly Legkodymov, the exchanges Russian creator, was apprehended in Miami.　　According to the FinCEN ruling, about two-thirds of Bitzlatos top receiving and sending counterparties were linked with darknet markets or frauds. The authorities noted that, in addition to Binance, Bitzlatos top receiving counterparties included Russias darknet Hydra and Ponzi scheme “TheFiniko.”　　Meanwhile, a Binance representative stated:　　“Binance is glad to have offered significant assistance to international law enforcement partners in support of this investigation. This reflects Binances commitment to collaborating with law enforcement partners around the world.”　　FinCEN stated in its decision that all covered financial institutions are prohibited from sending funds involving Bitzlato.　　The transaction was determined to be a “major money laundering risk in connection with illicit Russian finance,” according to the police.　　The order takes effect on February 1.　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

2023-01-19Deep Dive

SEC of Thailand issues crypto custody provider rules

Thailands Securities and Exchange Commission (SEC) is seeking to better protect cryptocurrency investors by establishing new crypto custody laws.　　The Thai Securities and Exchange Commission (SEC) published regulations on January 17 requiring virtual asset service providers (VASP) to build a digital wallet management system to ensure efficient custody. The new regulations are aimed at crypto custodians or VASPs that offer crypto storage services.　　Three important requirements are included in the regulations, including the supply of policy and procedures for managing the risk management of digital wallets and private keys. VASPs must communicate with authorities about such policies and create action plans to ensure compliance, according to the guidelines.　　Furthermore, the SEC demanded that cryptocurrency custodians disclose plans and procedures for creating, developing, and administering digital wallets and keys. The government will also compel crypto custodians to develop a backup plan in the event of an unforeseen event that disrupts the wallet management system.　　“This includes developing and testing action plans, identifying accountable parties, and reporting the event,” the SEC stated, adding:　　“A system security audit, as well as a digital forensic investigation, are also necessary in the event of any event compromising the security of systems associated to digital asset custody, which could have a

2023-01-18Deep Dive

Alameda liquidators hit with liquidation for second time in 3 days

In light of recent market movements, Alameda Research liquidators were liquidated for the second time in three days, according to Arkham Intelligence.　　On January 14, Alameda liquidators paid off $15,000 in Curve DAO token (CRV) debt in exchange for 0.83 wrapped Bitcoin (WBTC) — or around $17,600 in collateral.　　According to Arkham Intelligence, Alameda is still short $16,500 in CRV, which is collateralized by $23,000 WBTC.　　Second liquidation in three days　　On December 28, 2022, Alameda liquidators were compelled to become active on-chain after losing over $1.7 million in funds through mixers commonly utilized by hackers.　　Despite the best efforts of Alameda liquidators to collect all funds, Arkham research found that “large 7- and 8-figure sums of capital” remained trapped in Alameda wallets.　　Liquidators attempted to remove assets from a borrow position on the DeFi protocol [Aave] on wallet 0x712.　　Rather than repaying the loan and closing the position, the liquidators chose to remove all extra collateral, putting the position in jeopardy of liquidation.　　When forcibly liquidating the wallets AAVE positions, Alameda liquidators triggered the liquidation of around four WBTC — worth $72,000 — in addition to a penalty shaved from the liquidated collateral.　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of

2023-01-15Deep Dive

SEC Investigates Whether FTX Investors Followed Due Diligence Procedures

According to reports, the US Securities and Exchange Commission has asked several FTX investors whether they did adequate research on the cryptocurrency exchange before becoming clients.　　Remember that the platform (considered one of the industrys behemoths) failed in November, triggering multi-billion dollar losses and rocking the entire market to its core.　　According to Reuters, before investing in FTX, the American financial regulator requested information from several firms regarding their due diligence processes.　　The SECs investigation attempts to establish why investors chose the crypto platform and whether they used any techniques at all.　　The review does not imply that such businesses are the targets of the investigation into FTX and its former CEO, Sam Bankman-Fried (SBF).　　However, it may imply that investment funds and venture capital businesses exposed to the exchange may face regulatory scrutiny despite being considered victims of the alleged swindle.　　Previously, US officials sought information from FTX investors regarding their interactions with the companys executives.　　The fall of the trading platform is one of the worst chapters in cryptocurrency history. In November, the firm, which was previously valued at $32 billion, encountered serious liquidity troubles and refused to satisfy consumer withdrawal requests.　　It declared bankruptcy, and its former CEO, SBF, was arrested and detained in the

2023-01-08Deep Dive

Crypto Lender Genesis Lays Off 30% More of Its Staff

Genesis Global Trading let off more staff on Thursday, a spokeswoman for the cryptocurrency trading firm revealed to WikiBIT in a statement.　　According to a source acquainted with the situation, Genesis laid off around 30% of its workforce, reducing it to 145 personnel. Genesis had laid off 20% of their 260-person workforce in August.　　The sales and business development departments have been particularly severely affected, according to the source.　　“As we negotiate unprecedented industry headwinds, Genesis has made the painful decision to cut its global staff,” a Genesis representative stated in a statement. “These steps are part of our ongoing efforts to advance our business. We truly appreciate the efforts of our brilliant and dedicated staff as we continue to seek the best long-term solution for Genesiss business, clients, and workers.”　　The layoffs came after the company informed its clients on Wednesday that it will be “cutting costs and driving efficiencies” amid a difficult environment for crypto firms.　　Genesis, a subsidiary of crypto giant Digital Currency Group, has suffered as a result of the worldwide market collapse caused by the failure of Sam Bankman-FTX Frieds exchange. Genesis disclosed in November that its derivatives division had $175 million in money that could not be withdrawn. Later,

2023-01-06Deep Dive

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