The National Bank of Cambodia (NBC) has inked a memorandum of understanding (MoU) with Alipay, enabling users of the NBC’s digital currency, known as the bakong, to access the Alipay merchant network and conduct cross-border transactions through Alipay+.
This exciting development was announced at the FinTech Expo in Singapore, garnering significant attention.
The bakong, while operating on a blockchain, differs from a central bank digital currency (CBDC) in that it is a liability of the commercial banks that employ it.
Notably, the bakong accommodates both United States dollar and Cambodian riel accounts, catering to Cambodia’s heavily dollarized economy.
Under this MoU, Cambodian users can utilize the riel stored in their bakong wallets to shop at a staggering 83 million merchants worldwide linked to the Alipay network.
Additionally, Chinese tourists who possess accounts with Alipay’s extensive electronic payment system can now make purchases in Cambodia using the QR codes facilitated by the bakong KHQR system.
NBC governor Chea Serey expressed optimism about this collaboration, highlighting the convenience of these payment options and their potential to boost merchants’ revenues, thereby stimulating economic activity.
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She stated, “I’m confident this collaboration with Alipay+ will be beneficial for all parties.”
The bakong service, which launched in 2020, initially aimed to streamline remittances and facilitate purchases.
Its mobile application was developed in partnership with Japan’s Soramitsu blockchain.
Furthermore, Soramitsu has revealed plans to harness the bakong for the creation of a cross-border payment system spanning India, China, and Japan.
Impressively, the bakong is already in use in countries such as Malaysia, Thailand, and Vietnam.
In a previous development, the NBC had also signed an MoU with China’s UnionPay International in July, focusing on the utilization of QR codes for cross-border payments.
As of November 17, 2023, statistics from the Phnom Penh Post reported an impressive 35.4 million transactions totaling $12 billion using the bakong in the first half of the year, underscoring its growing significance in the digital currency landscape.
This strategic collaboration between the NBC and Alipay promises to further enhance the accessibility and utility of the bakong digital currency for users in Cambodia and beyond.
Bitcoin has taken the lead over Ethereum in terms of average daily transaction fees due to a recent surge in Ordinals-related activity on the Bitcoin network.
According to BitInfoChart data, as of November 20th, the average daily transaction fee for Bitcoin reached $10.34, while Ethereum’s fees averaged $8.43.
Bitcoin’s average daily trading fee hit a six-month high on November 16th, peaking at $18.67, while Ethereum’s fees reached $7.90.
This shift marks a significant change in the fee dynamics between the two cryptocurrencies over the past five days.
The sudden increase in Bitcoin transaction fees can be attributed to a growing interest in assets built on the Ordinals Protocol.
This protocol enables the creation of non-fungible token (NFT)-like assets and BRC-20 tokens on the Bitcoin blockchain.
After a period of relatively low activity between September 25th and October 23rd, Ordinals-based assets began to see a substantial uptick in late October, according to data from Dune Analytics.
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Since October 24th, over six million Ordinal assets have been created, resulting in more than 800 BTC in fees, equivalent to approximately $30 million, being distributed across the network.
This surge in Ordinals-related activity gained momentum when ORDI, the second-largest BRC-20 token by market capitalization, was listed on Binance on November 7th.
The listing triggered increased buying activity for BRC-20 tokens, causing the price of the ORDI token to soar by more than 50% in a single day.
In addition to these developments, on November 17th, the Ordinals-based project Taproot Wizards announced a successful seed round, securing $7.5 million in funding.
This announcement further solidified the interest and investment in Ordinals-based assets and projects on the Bitcoin network.
As Bitcoin continues to outpace Ethereum in terms of transaction fees, it reflects the growing popularity and utility of Ordinals-based assets and the broader adoption of blockchain technology for creating and trading digital assets.
These developments highlight the dynamic nature of the cryptocurrency ecosystem and the constant evolution of its use cases and applications.
The Blockchain Association has reaffirmed its support for six plaintiffs who are suing the United States Treasury’s Office of Foreign Assets Control (OFAC) over its sanctions on the cryptocurrency mixer Tornado Cash.
In a recent amicus curiae brief submitted to a U.S. appellate court on November 20, the Blockchain Association argued that OFAC’s decision to impose sanctions on the privacy protocol was not only unlawful but also went beyond its statutory authority.
They contended that it was “arbitrary and capricious,” in violation of the U.S. Constitution.
This marks the second amicus brief filed by the Blockchain Association in support of Tornado Cash users who are appealing a previous ruling that upheld OFAC’s decision to include the cryptocurrency mixer in its list of sanctioned entities.
Marisa Coppel, senior counsel for the Blockchain Association, stressed that OFAC should focus on sanctioning individuals who misuse tools like Tornado Cash rather than banning such tools outright, which they believe falls outside OFAC’s authority.
Coppel stated, “OFAC must see Tornado Cash for what it is: a tool that can be used by anyone.
“Rather than sanctioning a tool with a lawful purpose, OFAC should remain focused on the bad actors that misuse such tools.”
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She added that OFAC’s actions set a concerning precedent and could jeopardize the privacy rights of law-abiding Americans.
In their brief, the Blockchain Association suggested that OFAC should seek approval from Congress to ban crypto mixers like Tornado Cash, thereby acting within the bounds of the law.
They argued that the appropriate course of action is to “seek legislation from Congress that would provide supplemental authority in the uniquely decentralized digital asset context—not to improperly stretch its existing authorities.”
They cautioned against a power grab that could threaten various internet-based tools that have historically been freely available.
The Blockchain Association has consistently maintained that Tornado Cash operates without an owner or operator and can function autonomously without human intervention.
OFAC initially sanctioned Tornado Cash in August 2022, alleging that individuals and groups had used the mixer to launder over $7 billion in cryptocurrencies since 2019, including funds associated with the North Korea-affiliated Lazarus Group, which stole $455 million.
Microsoft CEO Satya Nadella took to social media on November 20th to announce significant developments within the company’s artificial intelligence (AI) research division.
In his post, Nadella expressed his enthusiasm about the hiring of former OpenAI CEO Sam Altman and OpenAI’s president, Greg Brockman, to lead a new advanced AI research team at Microsoft.
Nadella’s message underscored Microsoft’s ongoing commitment to its partnership with OpenAI, despite recent changes in leadership.
Emmett Shear, who assumed the role of OpenAI’s CEO on the same day as Altman’s departure, was mentioned with anticipation as Microsoft looked forward to collaborating with him in the future.
Shortly after Nadella’s announcement, Sam Altman retweeted the post, affirming that “the mission continues.”
This move came after Altman’s sudden ousting from OpenAI on November 17th, as the board of directors cited his alleged lack of transparency in communications as the reason for his removal.
READ MORE: Hacker Swipes $25 Million from Kronos Research in Stunning API Key Breach
Following Altman’s departure, Greg Brockman also stepped down from his position on the OpenAI board.
In response to his exit from OpenAI, Brockman expressed his shock and sadness on social media. While the official announcement characterized his departure as a voluntary resignation, Brockman clarified in his post that he had been informed of his removal.
Meanwhile, at OpenAI, Mira Murati, the former chief technology officer, assumed the role of interim CEO for the three days following Altman’s departure.
Murati had joined OpenAI in 2018 when it still operated as a nonprofit research center.
On November 20th, the company named Emmett Shear as its CEO, bringing his expertise as the former CEO and co-founder of the video streaming platform Twitch into the organization.
Microsoft’s strategic move to bring Altman and Brockman on board highlights the company’s commitment to advancing AI research, fostering innovation, and solidifying its position in the rapidly evolving AI landscape.
The partnership with OpenAI, despite recent leadership changes, remains integral to Microsoft’s vision for the future of artificial intelligence.
Breaking away from the standard focus on developers, the CrossFi Foundation unveils its visionary $50 million grant program. The initiative is designed to be inclusive, welcoming participation from all users within the Cross Finance ecosystem. In an interview, Alexander Mamasidikov, co-founder of Cross Finance, explains the motivations behind this move, sheds light on the strategic allocation of grants and reveals the eligibility criteria applied to grantees.
Question: In November, the CrossFi Foundation announced a large-scale grant program totaling $50 million. Who can apply for a grant and what needs to be done?
Answer: The CrossFi Foundation grant program targets all users of the Cross Finance ecosystem. It’s not limited to developers or technical experts; it is inclusive for everyone, including common users. The program is structured into four categories: common users, ambassadors, developers, and validators.
The eligibility criteria for receiving a grant vary depending on the user’s role in the ecosystem. For ordinary users, participation involves using ecosystem products, testing them, providing feedback, and sharing their experiences on social networks. Ambassadors need to have active social media accounts with a substantial follower base and create high-quality content about the ecosystem’s products. Developers seeking grants should be capable of creating services and tools on the CrossFi EVM-compatible blockchain. Validators can apply for grants to support the decentralized CrossFi Chain’s stability and robustness. Grants are awarded in native ecosystem coins, XFI and MPX.
Question: Are the volumes of grants in the four categories the same?
Answer: The grant program allocates the majority, approximately 75%, to development teams creating solutions based on CrossFi Chain. The remaining 25% will be distributed among three categories of grantees – users, ambassadors, and validators.
Question: What solutions do you expect to come to the ecosystem?
Answer: The range of expected solutions is broad, including bridges, swaps, lending protocols, farming and staking tools, DeFi protocols and services, oracles, and GameFi products. The goal is to expand the ecosystem and provide users with a diverse product selection. Development teams with finished products have an advantage, considering their experience, expertise, and community support. To receive a grant, teams must conduct an independent code audit and submit a security and decentralization report to the jury. The jury, currently comprising the CrossFi Chain developers’ team with extensive layer-1 blockchain experience, will evaluate all applications.
Question: If grants for developers are a very popular story in the blockchain industry, then grants for users are a rare phenomenon. Why did you decide to provide grants for ordinary users as well?
Answer: The Cross Finance product ecosystem aims to bridge traditional finance with the decentralized finance industry, making it accessible to a broad number of users in daily life. Recognizing that some users perceive cryptocurrencies as complex or separate them from traditional finance, the grant program seeks to address this gap through educational initiatives.
The goal is to illustrate the coexistence of traditional and decentralized financial approaches and demonstrate how they can complement each other. Ordinary users, being the primary audience, are encouraged to share their experiences and contribute to the ecosystem’s growth, fostering a better understanding of blockchain technology.
Question: $50 million is one of the largest grants in the blockchain industry over the past year. Do the goals of such grant programs justify it?
Answer: The CrossFi Foundation, as a non-commercial organization supporting Cross Finance, considers community as the main value and primary driving force of any decentralized system. The $50 million grant program aims to stimulate ecosystem development, encourage active community participation, and create a foundation for new products and services. The program emphasizes that users are not just consumers but also contributors to the ecosystem’s evolution. Grants have proven their effectiveness in fostering blockchain community engagement.
Question: Isn’t it easier to select a team of developers yourself and create the products the ecosystem needs? Wouldn’t it be cheaper?
Answer: The purpose of grant programs extends beyond product creation; it focuses on ecosystem and community development. Grant programs aim to attract DApp builders and professional developers with their own communities. These development teams, by launching decentralized applications on the CrossFi blockchain, introduce the capabilities of the CrossFi Chain to their audience, thereby increasing onchain activity and liquidity. Grant programs harness the collective force of the audience, a key driving factor in the blockchain industry.
Kraken co-founder, Jesse Powell, has strongly criticized the United States Securities and Exchange Commission (SEC) in response to the recent lawsuit filed against his crypto exchange for alleged securities law violations.
Powell took to social media, specifically X (formerly Twitter), on November 21 to express his discontent with the SEC’s actions.
In a scathing post, Powell referred to the SEC as the “USA’s top decel,” a term used in the tech industry to disparage someone seen as hindering progress.
He also claimed that the SEC was not satisfied with the $30 million settlement that Kraken had agreed to pay in February.
This settlement had been reached in response to previous charges by the SEC, which accused Kraken of failing to register the offer and sale of their crypto asset staking-as-a-service program.
As part of the agreement, Kraken had agreed to pay the $30 million fine and cease offering crypto-staking products and services to U.S. customers.
In a subsequent post, Powell issued a warning to other crypto companies, advising them to avoid the “US warzone” to steer clear of costly legal battles.
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He asserted that the $30 million payment would only buy them about ten months of respite before the SEC returned to demand more.
Powell argued that the SEC was well aware that a genuine legal battle could cost well over $100 million and valuable time.
The SEC’s latest lawsuit, filed on November 20, accused Kraken of multiple securities law violations, including the failure to register as a securities broker and the alleged commingling of customer and corporate funds.
Kraken’s response was swift, with a spokesperson denying the listing of unregistered securities and describing the lawsuit as “disappointing.”
The exchange vowed to defend its position in court, asserting that the commingling accusations were merely the result of Kraken spending fees it had already earned.
Importantly, the SEC did not allege that any user funds were missing.
Jesse Powell’s vocal criticism of the SEC underscores the ongoing tension between crypto companies and regulatory authorities in the United States.
As the crypto industry continues to evolve, it faces increasing scrutiny and legal challenges, prompting some companies to reconsider their operations within the country.
A class-action lawsuit has been filed against Apple by disgruntled consumers who allege that the tech giant conspired to limit peer-to-peer (P2P) payment options on its devices and block cryptocurrency technology from iOS payment apps.
The complaint, filed on November 17th in a California District Court, claims that Apple engaged in anti-competitive agreements with PayPal’s Venmo and Block’s Cash App to curtail the use of decentralized cryptocurrency technology in payment apps, resulting in users having to pay higher prices.
The lawsuit asserts that these agreements not only restrict feature competition but also hinder price competition, including preventing the incorporation of decentralized cryptocurrency technology in both existing and new iOS Peer-to-Peer Payment apps.
The plaintiffs further argue that Apple employs various technological and contractual constraints, such as enforcing exclusivity through the App Store and imposing limitations on web browser technology.
These constraints allegedly allow Apple to exert complete control over every app installed and run on iPhones and iPads.
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According to the plaintiffs, Apple leverages these restraints to compel new iOS P2P payment apps entering the market to exclude cryptocurrency as a condition for entry.
These customers, who have paid inflated fees due to Apple’s restrictions in the iOS P2P payment market, seek compensation for excessive fees and overcharging resulting from Apple’s alleged anti-competitive behavior.
They also request injunctive relief to prevent Apple from entering into and enforcing anti-competitive agreements that restrict competitors and potential entrants in the iOS P2P payment market.
In a detailed 58-page filing, the lawsuit chronicles the history and ascent of peer-to-peer payment apps, decentralized cryptocurrencies, and Apple’s foray into the market.
It’s worth noting that in April, the United States Court of Appeals for the Ninth Circuit ruled that Apple had violated California’s competition laws by preventing apps from directing users to non-Apple-linked payment solutions.
This class-action lawsuit underscores the ongoing legal battles and scrutiny that major tech companies like Apple face regarding their market practices and their impact on competition in the industry.
Blockchain security firm dWallet Labs has unveiled a critical vulnerability that has the potential to impact around $1 billion worth of cryptocurrencies, including assets like Ether, Aptos, BNB, and Sui (SUI).
The vulnerability centers around validators hosted by the infrastructure provider InfStones. In a research paper sent to Cointelegraph, dWallet Labs outlined their findings, which exposed a series of vulnerabilities within InfStones validators.
The security firm explained, “A chain of vulnerabilities we discovered and exploited during our research allowed us to gain full control, run code, and extract private keys of hundreds of validators on multiple major networks, potentially leading to direct losses equivalent to over one billion dollars in cryptocurrencies such as ETH, BNB, SUI, APT, and many others.”
This means that an attacker exploiting this vulnerability could obtain the private keys of validators across various blockchain networks, potentially gaining control over more than a billion dollars’ worth of staked assets.
InfStones responded to the disclosure, disputing the claim that the bug could affect such a significant amount of assets.
Darko Radunovic, a representative from InfStones, stated that the potential vulnerability was only identified in a small fraction of the live nodes they had launched.
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Specifically, it was found in 237 instances, including 212 designated for testing and 25 newly launched nodes in the production environment.
Radunovic clarified, “The instances identified in production constitute a fraction below 0.1% of the live nodes we have launched to date.”
In response to the vulnerability report, InfStones took proactive measures.
They conducted internal reviews and had a security firm with accreditation audit their systems and company policies.
Additionally, the company initiated a bug bounty program to encourage third parties to collaborate on identifying and resolving any bugs they may discover.
The revelation of this vulnerability highlights the ongoing challenges in ensuring the security of blockchain networks and the importance of prompt and effective responses by both infrastructure providers and security firms to protect the assets of crypto holders and investors.
A hacker has managed to pilfer a staggering $25 million from Kronos Research, a quantitative trading firm, by gaining unauthorized access to its API keys.
The breach was unveiled by Kronos Research on November 19th when they discovered that an unauthorized entity had infiltrated their API keys.
As a precautionary measure, the firm swiftly halted its trading services on the platform. Fortunately, no financial losses were reported at that juncture.
Upon the disclosure of the breach, blockchain investigator ZachXBT delved into the matter and unearthed the shocking revelation that approximately $25 million had been funneled into six distinct cryptocurrency wallet addresses.
The investigation unveiled that the funds were moved in six separate transactions, totaling 2,780 Ether, 2,540 ETH, 2,540 ETH, 2,636 ETH, 4.93 ETH, and 2,507.52 ETH, respectively.
These transactions originated from a Kronos Research account and were sent to various addresses controlled by the hacker.
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Kronos Research has opted to indefinitely suspend its trading services while conducting an internal investigation to apprehend the individual responsible for the theft of over 12,800 ETH.
Despite this setback, the company remains optimistic about its future, stating, “Potential losses are not a significant portion of our equity, and we aim to resume trading as soon as possible.”
Kronos Research has yet to respond to Cointelegraph’s request for comment.
The escalating frequency of crypto-related hacks underscores the importance of thorough due diligence for potential investors in cryptocurrency projects.
CertiK, a blockchain security firm, recently disclosed that the third quarter of 2023 was the most “damaging” quarter for the crypto industry.
During this period, malicious actors employed a variety of techniques, including private key exploits, exit scams, and oracle manipulation, to compromise the security of crypto ecosystems.
Shockingly, the cumulative losses from security incidents during Q3 2023 exceeded $700 million, surpassing the losses incurred in the first and second quarters, which stood at $320 million and $313 million, respectively.
This alarming trend underscores the need for robust security measures and greater awareness within the cryptocurrency space as it continues to attract both investors and cybercriminals.
The company responsible for Atomic Wallet has submitted a request to a United States court, urging the dismissal of a class action lawsuit that seeks damages in the aftermath of a $100-million hack.
Their argument centers on the assertion that the claims should have been lodged in Estonia, where the company is headquartered.
In a motion for dismissal filed on November 16th in a Colorado District Court, the Estonian firm emphasized that it maintains “no U.S. ties.”
They cited their end-user license agreement, which explicitly mandates that all legal disputes against the company must be initiated in their home country of Estonia.
Furthermore, Atomic Wallet highlighted the fact that only one user in Colorado was reportedly impacted by the hack.
The company also underscored that the approximately 5,500 affected Atomic Wallet users had willingly agreed to its terms of service.
These terms of service clearly disclaim liability for losses due to theft and impose limits on damages, capping them at $50 per user.
Atomic Wallet argued that the plaintiff’s allegations of negligence lacked legal merit, as no legal duty existed that required them to maintain the security of Atomic Wallet or protect against hacking.
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They pointed out that the Colorado legal system does not recognize such a duty, citing previous court decisions as precedent.
Additionally, the Estonian-based wallet provider refuted claims of fraudulent misrepresentation brought forward by the plaintiffs.
The class action lawsuit was initiated in August, a couple of months following a $100-million exploit that affected up to 5,500 users of Atomic Wallet.
This hack had been attributed to both North Korean and Ukrainian groups.
In sum, Atomic Wallet’s request for dismissal centers on its contention that the lawsuit should be filed in Estonia in accordance with their terms of service.
They also argue that the claims of negligence and fraudulent misrepresentation are legally baseless, pointing to the limited liability and lack of a recognized legal duty in the state of Colorado as supporting arguments for the dismissal.