Following a cyberattack, bankrupt cryptocurrency exchange FTX has reinstated its customer claims portal with enhanced security measures.
Customers can resume submitting claims for assets owned on the platform prior to its insolvency.
On Sept. 16, FTX updated the community via X (previously Twitter), stating that the cyber intrusion, which targeted its bankruptcy claims agent, Kroll, didn’t impact its systems.
Although certain non-sensitive claimant data got exposed, crucial details like account passwords and funds remained untouched.
Account holders from FTX, FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid can access their accounts and initiate the claims process for digital assets held before the November 2022 bankruptcy announcement.
Cointelegraph revealed on Sept. 11 that claims worth $16 billion from about 36,075 customers were lodged against FTX and FTX US, with 10% settled.
Another 2,300 non-customer claims, totaling $65 billion, included those from notable entities like Genesis, Celsius, and Voyager.
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FTX emphasized that account freezing was precautionary, with further security actions now in place.
After discovering the cyberattack against Kroll, FTX temporarily suspended affected user accounts on Aug. 27.
Nevertheless, proofs-of-claims could still be dispatched via Kroll’s online form and by post.
Introduced on July 11, the customer claims portal faced disruptions, becoming inaccessible within an hour of its launch for unspecified reasons.
In parallel developments, the U.S. Bankruptcy Court for the District of Delaware approved FTX’s digital assets sale.
Judge John Dorsey’s Sept. 13 ruling allows FTX to sell assets in weekly tranches, with an initial cap of $50 million and $100 million in the following weeks.
However, FTX cannot currently offload its Bitcoin, ETH, and specific insider-affiliated tokens.
For selling these assets, FTX would need to issue a 10-day advance notice to the related committees and the U.S. trustee, awaiting a separate decision.
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Magic Eden, a prominent nonfungible token (NFT) marketplace, has made an exciting announcement that is set to revolutionize the world of digital collectibles.
They are now offering support for Solana’s compressed NFTs (cNFTs), presenting a game-changing alternative that combines cost-efficiency and scalability.
These innovative cNFTs distinguish themselves from conventional Solana NFTs by employing data compression techniques and storing the information off-chain.
This unique approach drastically reduces the fees required for minting, making it economically viable to produce NFTs in larger quantities.
Magic Eden firmly believes that cNFTs are poised to make waves across various industries such as gaming, music, events, and the metaverse.
This newfound flexibility opens doors for creators to embark on mass-produced collections, expanding their reach to wider audiences without incurring excessive costs.
Beyond catering to creators, Magic Eden also aims to democratize NFT ownership by lowering the barriers to entry.
By minimizing the production costs associated with NFTs, the marketplace becomes an accessible gateway for newcomers looking to explore the world of digital collectibles.
Users can now amass NFTs without risking substantial funds, mitigating the potential financial pitfalls that come with this burgeoning asset class.
At the core of cNFTs is Solana’s state compression, a groundbreaking feature that enables the minting of up to 1 million NFTs for a mere $110.
This stands in stark contrast to the exorbitant costs of minting NFTs on Ethereum, where fees can range from $2.9 to well over $30 per NFT.
The cost-efficiency of cNFTs is set to disrupt the market, making NFT ownership more accessible to a broader audience.
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While the advantages of off-chain NFT hosting are evident, it is essential to acknowledge the potential challenges that may arise.
A notable incident in 2022 involved NFTs minted on the crypto exchange FTX, which displayed blank images as the exchange faced bankruptcy.
An engineer highlighted that these NFTs were hosted using Web2 technology, underscoring the importance of using blockchain-based solutions for NFT hosting to ensure the security and integrity of digital collectibles.
In conclusion, Magic Eden’s support for Solana’s cNFTs marks a significant leap forward in the NFT space.
This innovation promises to democratize NFT ownership, reduce costs, and foster the growth of various industries, while also reminding us of the critical importance of employing blockchain technology for secure NFT hosting.
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Binance CEO Changpeng “CZ” Zhao has addressed rumors and speculations regarding the departure of Binance.US CEO Brian Shroder, emphasizing that Shroder is taking a well-deserved break following his successful tenure at the company.
Binance.US, a subsidiary of Binance Holdings, has witnessed several high-level executives stepping down amid legal challenges from the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
In a statement issued on September 15, CZ urged everyone to disregard “FUD” (Fear, Uncertainty, Doubt) surrounding recent executive changes.
He suggested that Shroder’s departure was amicable, and during his two-year tenure, Shroder had achieved the objectives he set out to accomplish when he joined the company.
CZ praised Shroder’s leadership, highlighting that under his guidance, Binance.US had successfully raised capital, enhanced its product and service offerings, streamlined internal processes, and significantly increased its market share.
These achievements contributed to building a more resilient company, benefiting customers and stakeholders alike.
Binance is currently facing lawsuits from both the SEC and CFTC, alleging multiple violations of securities and trading laws, including the sale of unregistered securities and mishandling of customer funds.
The SEC also accused Binance of unlawfully commingling funds between its U.S. and international branches.
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In response to these legal challenges, Binance.US announced on September 13 that it would be reducing its workforce by one-third, and Shroder would step down as CEO.
Subsequently, on September 14, two more executives, head of legal Krishna Juvvadi and chief risk officer Sidney Majalya, resigned from their positions.
These departures led to speculation that Binance might be facing more severe legal troubles than previously disclosed.
CZ alluded to the challenging regulatory landscape in his statement, noting that the cryptocurrency market has evolved significantly over the past two years, becoming increasingly hostile.
He expressed confidence in the new CEO of Binance.US, Norman Reed, asserting that Reed is the right person to lead the U.S. exchange in this new era.
Despite growing scrutiny and concerns about transparency and solvency, Binance remains the world’s largest cryptocurrency exchange by trading volume.
CZ has consistently dismissed claims of liquidity issues and maintains that the allegations against the company are unfounded.
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Approximately $900,000 worth of cryptocurrency has reportedly been siphoned from a hot wallet owned by billionaire investor and Dallas Mavericks owner, Mark Cuban.
The breach was first detected on September 15th around 8 pm UTC by the independent blockchain investigator known as Wazz.
Wazz noticed suspicious activity in one of Cuban’s wallets, which had remained dormant for approximately five months.
A scrutiny of the transaction history on Etherscan revealed that various assets, including USD Coin, Tether, and Lido Staked Ether (stETH), were swiftly withdrawn from the wallet in a 10-minute timeframe.
To complicate matters, an additional $2 million worth of USDC was subsequently withdrawn and transferred to another wallet, leading Wazz to speculate that Cuban might have been repositioning his assets.
A few hours later, Cuban corroborated this by informing DL News that he had accessed MetaMask for the first time in months. He vaguely hinted that the hackers might have been monitoring his activity, waiting for an opportune moment to strike.
To secure his remaining assets, Cuban disclosed that he had moved them to Coinbase Custody, effectively confirming that the $2 million USDC transfer was legitimate.
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Regarding the hack, some community members asserted that Cuban’s actions may have inadvertently triggered the security breach.
They suggested he might have mistakenly approved a malicious transaction or, more worryingly, that his private key had been compromised, as the funds were directly withdrawn from the wallet.
This incident isn’t the first setback Mark Cuban has faced in the cryptocurrency market.
In June 2021, he suffered an unspecified loss in a “rug pull” when an algorithmic stablecoin project called Iron Finance collapsed amid allegations of a bank run.
In summary, nearly $900,000 in crypto assets was drained from Mark Cuban’s hot wallet in a security breach discovered by independent blockchain investigator Wazz.
Cuban later confirmed his involvement in a $2 million USDC transaction, and the crypto community speculates that his own actions may have inadvertently led to the hack.
This incident adds to Cuban’s previous crypto setbacks, including losses incurred in the Iron Finance project collapse.
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In August, the crypto markets experienced their most challenging month since Bitcoin hit rock bottom in November 2022.
Initially dismissed as a mere summer slump, this downturn turned out to be a significant market setback, primarily fueled by cascading liquidations in the derivatives sector.
This led to a daunting 7.3% loss in Bitcoin’s value and a 6.9% decline in Ether’s value.
Grayscale’s legal victory briefly provided respite, but prices quickly retraced to their month-start levels, triggering one of the largest liquidation events in crypto, resulting in over $1 billion in losses as Bitcoin plummeted to $26,000.
Adding salt to the wound, venture capital (VC) investments plunged by a staggering 42.7% from July to August, amassing a modest $401.9 million across 77 deals.
This marks a sharp decline in crypto industry investment, which had been on an upward trajectory until May of that year.
Cointelegraph Research’s “Investor Insights Report” delves into the performance of various digital asset sectors in this challenging environment, providing a concise monthly roundup of crypto developments spanning venture capital, derivatives, decentralized finance (DeFi), regulation, mining, and more.
Venture capital investments in the blockchain sphere have been on the decline since the second quarter of 2022, reaching a new low of $401 million in 2023.
Infrastructure projects secured 18 deals, raking in $107 million in August, with centralized finance (CeFi) securing $100 million through just three deals.
These lagging investments hint at a potential resurgence once market sentiment shifts positively.
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Despite the gloom, the words of Tim Draper resonate: “Investors always get it wrong.”
This suggests that the downtime may be the opportune moment to identify quality projects for long-term holding, anticipating the return of the bull market.
On August 25th, $1.9 billion in monthly Bitcoin options expired, stirring speculation in the markets.
Although Bitcoin’s price remained relatively stable during this period, excitement surged following news of the SEC’s court defeat against Grayscale.
This victory potentially paves the way for a future spot Bitcoin ETF.
The price briefly soared to $28,000 before retreating to the $26,000 range.
While short-term gains were elusive, there are promising signs of market support at this level.
Cointelegraph’s Research team boasts a blend of top talents in the blockchain industry, blending academic rigor with practical experience.
With decades of collective expertise in traditional finance, business, engineering, technology, and research, the team is dedicated to delivering accurate and insightful content, exemplified by their latest Investor Insights Report.
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BitQuant, a renowned social media commentator in the cryptocurrency sphere, has set a bold price prediction for Bitcoin.
While many anticipate Bitcoin’s price to surge as it approaches its next block subsidy halving, BitQuant’s forecast suggests that it will reach new all-time highs even before this event.
In a recent post on X, formerly known as Twitter, BitQuant, operating under the pseudonym of a “central banker and Bitcoiner,” disclosed a pre-halving target exceeding $69,000.
He emphasized that Bitcoin would not reach its peak before the halving, but rather, it would attain a new record high.
Currently, Bitcoin has a little over six months left before the halving, an event that reduces miner rewards by 50% every four years.
Analysts contend that this reduction in supply emissions tends to catalyze a surge in Bitcoin’s price, acting as a launching pad for new all-time highs.
BitQuant, however, remains even more bullish in his outlook.
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He believes that not only will Bitcoin surpass its existing all-time high, established in 2021, before April, but it will eventually reach an impressive $250,000 per coin after the commencement of the next halving cycle in 2024.
Contrary to BitQuant’s optimism, the cryptocurrency market is marked by a stark division of opinions regarding Bitcoin’s price trajectory leading up to and following the halving.
While some share BitQuant’s optimism about higher prices by April, many adopt a more conservative stance.
Jesse Myers, a Bitcoin investor and author, dismisses the idea of BTC/USD hitting six figures before the halving.
Meanwhile, Filbfilb, co-founder of trading suite DecenTrader, projects a pre-halving BTC price ceiling of $46,000, barring any unforeseen black swan events.
As of September 15, Bitcoin was trading at approximately $26,400, marking a 1.3% increase in September so far, according to data from monitoring resource CoinGlass.
While the future remains uncertain, BitQuant’s prediction has certainly added to the ongoing debate about Bitcoin’s price trajectory, leaving the cryptocurrency community eager to see how events unfold in the coming months.
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A Bitcoin miner recently found themselves in an unexpected predicament involving a substantial sum of cryptocurrency.
They received a staggering 19.8 BTC in fees from blockchain infrastructure firm Paxos, only to later return the funds.
The reason behind this dramatic turn of events was Paxos’ claim that they had made a grievous mistake, inadvertently paying over $500,000 in transfer fees.
The cryptocurrency community was left bewildered on September 10th when a Bitcoin transaction caught their attention.
This transaction entailed paying approximately $500,000 in fees to move a mere $2,000, a stark contrast to the typical network fee of around $2.
Various speculations circulated within the community, with some speculating that the error occurred due to a data copy-paste mishap, inadvertently placing an output value into the fee box without verification.
Subsequently, on September 13th, Paxos stepped forward and acknowledged responsibility for the transaction mishap.
They reassured their users that their funds remained secure and were the rightful property of Paxos.
Additionally, Paxos clarified that PayPal had no involvement in the mistake, conceding that the error was entirely their own.
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Almost a day after Paxos’ admission, the Bitcoin miner who had received the excessive fees turned to social media, specifically X (formerly Twitter), to voice their frustrations.
Ultimately, they agreed to refund the entire amount to Paxos.
Seeking advice from their X followers, the miner asked what course of action they should take, with a majority of respondents suggesting the funds be distributed to other Bitcoin miners.
However, it appears this counsel was not heeded, as blockchain data from Bitcoin explorer Mempool confirmed that the funds were indeed returned to Paxos on September 15th.
This incident is not the first time substantial transaction fees have been lost due to human error. In 2019, an Ethereum user suffered a loss of nearly $400,000 in Ether after mistakenly inputting values in the wrong fields.
Fortunately, the Ethereum mining pool Sparkpool intervened and helped the user recover half of the lost funds, highlighting the importance of community support and cooperation in the world of cryptocurrency.
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Crypto mining company Core Scientific has announced a resolution to their prolonged legal dispute with lending firm Celsius Network.
The agreement, disclosed on September 15, outlines Core Scientific’s decision to sell a Bitcoin mining data center to Celsius for $14 million in cash.
This settlement effectively brings an end to all existing litigation between the two parties.
However, the deal remains subject to court approval due to its significant financial implications.
The origins of the conflict can be traced back to October 2022, when Core Scientific alleged that Celsius had defaulted on its financial obligations.
In retaliation, Celsius asserted that Core Scientific had failed to deploy mining rigs as stipulated in their contractual agreement.
The ensuing legal battle led both companies to file for Chapter 11 bankruptcy protection separately.
Core Scientific pursued this route in Texas in December 2022, while Celsius did so in New York in July 2022.
The Texas-based data center, valued at approximately $45 million, is the crux of the agreement.
Pending court approval, it is anticipated that the data center will become part of Celsius’s mining operations.
Despite being nonoperational at the time, the facility has the capacity to supply 215 megawatts to Bitcoin mining rigs.
Notably, Chris Ferrero, CEO of Celsius, acknowledged the pivotal role played by crypto mining firm US Bitcoin in facilitating and executing this transaction.
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US Bitcoin was also part of the winning bid for Celsius’s assets in the bankruptcy proceedings.
It’s crucial to note that the legal disputes between the two companies are distinct from the criminal charges faced by former Celsius CEO Alex Mashinsky and former Chief Revenue Officer Roni Cohen-Pavon.
Mashinsky, arrested in July, has pleaded not guilty to charges related to fraud and market manipulation.
In contrast, Cohen-Pavon pleaded guilty to four charges on September 13 and awaits sentencing in December.
In conclusion, Core Scientific and Celsius Network have reached a landmark agreement, effectively settling their protracted legal battle.
This resolution involves the sale of a Bitcoin mining data center in Texas, valued at $45 million, for $14 million in cash.
Pending court approval, this transaction marks a significant turning point for both companies, and it is expected to have a substantial impact on Celsius’s mining operations.
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In the world of decentralized finance (DeFi), the past week has been marked by significant developments and debates.
Brian Armstrong, the CEO of Coinbase, stepped up to defend the fledgling DeFi ecosystem in the face of mounting calls for regulatory enforcement.
He suggested that DeFi protocols should consider resorting to legal proceedings in court to establish a precedent, citing the legal system’s commitment to upholding the rule of law.
He expressed concerns that the current approach may inadvertently drive this critical industry to offshore jurisdictions.
Armstrong’s comments also touched upon the role of regulatory bodies like the United States Commodities Futures Trading Commission (CFTC).
He argued against enforcement actions targeting DeFi protocols, pointing out that they operate differently from conventional financial service businesses, and it’s debatable whether the Commodity Exchange Act even applies to them.
Meanwhile, Rune Christensen, the co-founder of MakerDAO, expressed optimism about the future dominance of decentralized stablecoins, such as Dai, in the crypto market.
He believes this potential can be realized if the crypto industry lives up to its full potential. Christensen shared his views on the future of these stablecoins and their role in the broader crypto economy at the Token2049 conference in Singapore.
Polygon, a layer-2 blockchain firm, has been making substantial strides in the world of DeFi. Sandeep Nailwal, one of Polygon’s co-founders, highlighted the success of their $1 billion investment in zero-knowledge proof (ZK) technology for scaling solutions within the Ethereum ecosystem.
Nailwal discussed the development of “Polygon 2.0” scaling efforts and the promise of recursive ZK-proof technology for creating a seamless, interoperable blockchain ecosystem.
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In contrast to these positive developments, a report by market surveillance firm Solidus Labs revealed concerning statistics about decentralized exchanges (DEXs).
Over the last three years, more than 20,000 crypto tokens have been manipulated through wash trading on DEXs.
The report found that nearly 70% of a sample of 30,000 Ethereum-based DEX liquidity pools engaged in wash trades, amounting to approximately $2 billion worth of crypto.
Additionally, the DeFi Education Fund launched a petition aimed at reviewing a patent owned by True Return Systems, which they accuse of being a “patent troll.”
This term refers to companies that profit from patent lawsuits.
The DeFi Education Fund submitted a comprehensive petition to the Patent Trial and Appeal Board in an effort to cancel the contentious patent.
Despite these mixed developments and debates in the DeFi space, data from Cointelegraph Markets Pro and TradingView indicated that DeFi’s top 100 tokens faced a mixed week, with most of them trading in the red on weekly charts.
Nonetheless, the total value locked into DeFi protocols remained consistently above $49 billion, underscoring the continued interest and participation in the DeFi ecosystem.
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Australia and New Zealand Banking Group (ANZ) is making significant strides toward the launch of its bank-issued stablecoin, A$DC.
The bank has achieved a crucial milestone by successfully conducting a test transaction on Chainlink’s Cross-Chain Interoperability Protocol (CCIP), marking a pivotal moment for the institution.
Nigel Dobson, the lead for ANZ’s banking services portfolio, emphasized the significance of this achievement, stating that it represents a substantial step forward for the bank.
The test transaction conducted in collaboration with Chainlink CCIP simulated the purchase of a tokenized asset, utilizing A$DC and an ANZ-issued New Zealand dollar-denominated stablecoin.
Dobson disclosed that ANZ has been actively exploring various blockchain networks as part of its “test-and-learn” approach.
This experimentation is aimed at identifying the most effective applications for ANZ’s Australian dollar stablecoin within decentralized networks.
ANZ, one of the world’s largest global banks boasting over $1 trillion in total assets under management, is showcasing the potential of CCIP for secure cross-chain stablecoin transactions.
This demonstrates the growing prominence of Chainlink and CCIP as standard solutions for facilitating interbank transactions.
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Dobson underscored ANZ’s conviction in the value of tokenizing real-world assets like the Australian dollar, a development poised to reshape the banking industry.
He remarked, “Tokenized assets are already changing the way banking works, and the technology has the potential to do more — if the right pieces can come together.”
Notably, ANZ achieved a significant milestone in March 2022 when it minted the first A$DC stablecoin, becoming the inaugural Australian bank to do so.
National Australia Bank (NAB) followed suit a year later by introducing its AUDN stablecoin on the Ethereum blockchain.
However, it is worth mentioning that NAB, along with several of its counterparts, including Commonwealth Bank of Australia, Westpac, and Bendigo Bank, has recently imposed restrictions and, in some cases, complete bans on bank transfers to certain “high-risk” cryptocurrency exchanges.
The primary rationale cited by these banks is the need to safeguard customers against potential cryptocurrency scams.
This regulatory stance highlights the ongoing tension between traditional banking institutions and the burgeoning cryptocurrency ecosystem.
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