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Cryptocurrency Firms Linked to Justin Sun Hit by $115 Million Hack

Kerala Blasters’ strong backing in Kochi was evident when Drinčić scored from Adrian Luna’s assist just before halftime….reports Asian Lite News

Two cryptocurrency firms associated with high-profile digital entrepreneur Justin Sun were hacked in two exploits that might have stolen up to $115 million to date, the media reported.

The targeted platforms include the HTX digital currency exchange (formerly Huobi), from which hackers stole around $30 million worth of cryptocurrencies, according to the company.

HTX also confirmed that the blockchain bridge Heco Chain, was also attacked, reports CNBC.

Sun, an investor in HTX and connected to the Heco Chain, also confirmed the events on X.

“HTX and Heco Cross-Chain Bridge Undergo Hacker Attack. HTX Will Fully Compensate for HTX’s hot wallet Losses. Deposits and Withdrawals Temporarily Suspended. All Funds in HTX Are Secure, and the Community Can Rest Assured,” he wrote.

Sun also mentioned that the company is “investigating the specific reasons for the hacker attack. Once we complete the investigation and identify the cause, we will resume services”.

According to the market analytics firm CryptoQuant, a total of $85.4 million worth of cryptocurrency has been stolen from the Heco Chain. It was largely denominated in stablecoin USDT and ether.

A significant sum of HBTC, HTX’s native coin, was also stolen.

The data from the market analytics firm also showed that around 11,100 ether tokens have been moved from the HTX exchange in the last few hours.

According to the spokesperson for CryptoQuant, this is around $23 million in cryptocurrency and is primarily the consequence of hackers taking digital coins, as well as a few people attempting to withdraw their funds from the exchange.

Meanwhile, over $7 billion in cryptocurrency has been illicitly laundered through cross-chain crime, with North Korea’s Lazarus Group being linked to the theft of around $900 million between July 2022 and July of this year.

Cryptocurrency Crash Architect Faces Extradition

A court in Montenegro has approved extradition of Do Kwon, the cryptocurrency entrepreneur behind the crash of two digital currencies (TerraUSD and Luna), to either South Korea or the US.

Kwon was arrested in the country in March after being caught at the airport with fake documents.

The final decision on the extradition will be made by the Montenegrin Justice Minister, after Kwon serves a four-month prison sentence in Montenegro for document forgery, reports CoinDesk.

Kwon faces multiple counts of fraud charged by US federal prosecutors, in addition to an ongoing investigation in South Korea.

Kwon, 32, who was behind cryptocurrencies that suffered a multi-billion dollar crash last year, and his chief financial officer, identified only by his surname Han, were arrested at Podgorica Airport on March 23 after attempting to travel to Dubai with forged passports.

In June, a Montenegro court sentenced Kwon, the co-founder of Terraform Labs, and his aide to four months in prison on charges of using fake passports.

The duo had been on the run after fleeing South Korea while under a probe in connection with the crash of Terraform Labs’ TerraUSD and Luna coins, which wiped out nearly 50 trillion won ($38 billion) in market value.

South Korean prosecutors sought an arrest warrant for Kwon over allegations that included providing false information to investors and violation of the capital market law.

Interpol also issued a red notice, used for the highest level of wanted suspects and criminals. Kwon’s passport has since been invalidated.

TerraUSD was designed as a stablecoin, which was pegged to stable assets, like the US dollar. But holders of TerraUSD and Luna lost more than an estimated $40 billion in market value after the stablecoin plunged far below its $1 peg last May.

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19 become billionaires via cryptocurrency

Global regulator for banks red-flags crypto-assets such as Bitcoin

Aside from individuals, there are large corporations that have accumulated great volumes of Bitcoin…reports Asian Lite News

As the world of cryptocurrency tumbles down amid regulatory crackdowns, there are 19 individuals in the world who achieved the title of a billionaire through cryptocurrency.

One cryptocurrency in particular that has led to investors amassing impressive returns is Bitcoin.

Satoshi Nakamoto, the pseudonym for the creator of Bitcoin, is widely assumed to have the most Bitcoin wealth. Though the creator has not officially revealed the amount of Bitcoin he holds, estimates predict he has a wallet containing around 1.1 million BTC, according to data shared by niche news publisher BanklessTimes.com.

This would convert to a staggering around $25 billion.

“Following Nakamoto is Changpeng Zhao, commonly known as CZ who is the founder and CEO of Binance, with a total of $65 billion. Prior to Sam Bankman-Fried’s scandal, he took third position with a total of $24 billion,” the report showed.

Looking at the landscape of BTC investing across countries, the US takes the lead, with 46 million holders. This is significantly more than India in second place with 27 million holders and Pakistan with 26 million. However, the most Bitcoin owned is distributed between just four wallets which holds a collective 663,306 Bitcoins.

Aside from individuals, there are large corporations that have accumulated great volumes of Bitcoin.

In fact, a total of 23 publicly traded companies have sizable investments in BTC, said the report.

The company with the largest investment in BTC among these is MicroStrategy Inc. with an astonishing 129,699 BTC, equating to $3,975 million.

Another high profile example of company ownership of BTC is Tesla, which in 2021, purchased $1.5 billion worth of Bitcoin. The automotive and clean energy company also began to accept BTC as a form of payment which would’ve increased their total value invested even higher.

However, the company later went on to offload the majority of its bitcoin holdings in 2022, said the report.

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Cryptocurrencies important part of discussion in G20

Malpass also said low-income countries are at high risk of debt distress or are already in it and debt crises are also spreading to middle-income countries…reports Asian Lite News

Finance Minister Nirmala Sitharaman has said India’s G20 presidency aims to develop a common framework for all countries to deal with risks associated with cryptocurrencies in the wake of the recent shocks witnessed in the crypto market.

The last year’s episode of FTX’s bankruptcy, and its spat with Binance triggered a huge sell-off in the market and reduced liquidity. This event made the world realise the vulnerability of this asset class as they do not have any underlying value.

“Cryptocurrencies are a very important part of the discussion under the #G20India presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter,” she said at a discussion in Peterson Institute for International Economics here.

She also said G20 is trying to bring together all countries to address debt distress in middle-income and low-income nations like Sri Lanka and Ghana.

During the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in February, it was agreed to strengthen multilateral coordination by official bilateral and private creditors to address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries.

The World Bank and IMF are also holding a roundtable on Global Sovereign Debt. Initial discussions happened at the G20 FMCBG meeting in Bengaluru, she said, adding India’s G20 presidency will create discussion and sharing of information on this issue and it will be taken forward positively.

“In G20, there is an opportunity for India to bring all countries together to address debt distress in middle-income and low-income countries. Multilateral institutions are coming up with resolutions for debt-laden countries in 3 to 5 years’ time,” Sitharaman said.

In December last year, World Bank President David Malpass said the world’s poorest countries owed USD 62 billion in annual debt service, a 35 per cent growth over USD 46 billion in 2021, triggering a higher risk of defaults.

Malpass also said low-income countries are at high risk of debt distress or are already in it and debt crises are also spreading to middle-income countries.

Under the G20 presidency, India has been pressing for ways to tackle the aggravated debt vulnerabilities facing developing nations mainly on account of the continuing geopolitical tensions and the pandemic.

It is feared that if left unaddressed, the mounting debt vulnerabilities of developing nations could trigger global recession and push millions to extreme poverty.

Sitharaman also said, India is carrying forward agendas of earlier G20 presidencies, bringing issues on table that India considers important and also making way for the future G20 presidencies to build upon the legacy of G20 India Presidency.

Observing that emerging markets have G20 presidencies for three consecutive terms from Indonesia in 2022, India in 2023 and Brazil next year, she said, this will bring views of emerging markets to the front and also the voice of the Global South onto the G20 table.

On the business environment in the country, she said foreign investments have kept coming to India. “I would tell the prospective investors to come and look at what’s happening in India rather than listening to perceptions being built by people who’ve not visited the ground but writing reports.”

Talking about goals of India for the next 5 years, the finance minister said, “Today, we are reaching saturation in providing basic facilities to citizens such as houses, electricity, transport, etc and are empowering them. Emphasis is there on financial inclusion so that all have bank accounts and benefits reach them directly.”

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End of crypto craze?

More than $200 billion were wiped off the entire cryptocurrency market this week, a report by Nishant Arora

As foreign portfolio investors continue to pull out money from the Indian equity market, the sell-off in the crypto market and the digital asset space has also accelerated in the wake of global economic meltdown.

More than $200 billion were wiped off the entire cryptocurrency market this week and the globally crypto market capitalisation fell below $1 trillion for the first time since February 2021, according to data from CoinMarketCap.

The already sinking cryptocurrency market in India is also witnessing a huge sell-off as the prices of Bitcoin and other cryptocurrencies nosedive amid volatile market conditions triggered by factors like high inflation, rising interest rates, the Russia-Ukraine war, and China lockdowns.

According to experts, crypto investors and traders in India are currently exercising caution and a distinct dip in crypto buying has been noticed.

Nischal Shetty, co-founder of cryptocurrency exchange WazirX, said: “Indian investors are cautious and are taking the ‘wait and watch’ approach.”

Bitcoin (BTC), the world’s largest cryptocurrency, has plunged about 70 per cent since its record high of $69,000 in November last year.

It was hovering around Rs 20,000-Rs 21,000 per coin this week.

According to analysts, Bitcoin may hit a grim $14,000 this year at this rate.

Smaller cryptocurrencies, which tend to move in tandem with Bitcoin, also fell.

Ethererum, the second-largest digital token, fell as much as 12 per cent to $1,045, a new 15-month low.

The current decline means that Ethererum has shed 77 per cent of its value since November 2021.

According to Cointelegraph, Ethereum sell-off resumed this week, with its price risking another 25 per cent decline in June.

However, in such a gloomy scenario, India’s own Gari digital token by short-video making app Chingari has risen about 40 per cent.

Chingari, the fastest-growing Blockchain social app, this week announced the ‘GARI Mining’ programme to empower 4 crore monthly average users (MAU), becoming the first social app in the world to offer crypto to its creators and users on its platform.

“This programme will ensure a level playing field for big and humble creators. Now, creators and users on the app can earn GARI tokens which can be traded on exchanges for money and creators will not be at the mercy of brand collaborations as their only source of income,” said Sumit Ghosh, Co-founder and CEO, Chingari and GARI token.

Meanwhile, the fate of cryptocurrencies in India is still hanging in balance, and the much-awaited crypto bill is yet to see the light of the day.

In April, Finance Minister Nirmala Sitharaman reiterated her doubts about the size of the cryptocurrency market worldwide and stressed the need for a regulatory mechanism acceptable to all countries to prevent its use to launder money and fund terrorism, which, she said, were big concerns for India.

India distinguishes between cryptocurrency and crypto assets as a result, and the minister had in February announced a 30 per cent tax on income from these transactions, which includes a 1 per cent deduction at source.

Indian Minister of Finance Nirmala Sitharaman

The country is poised to have its own digital currency by the Reserve Bank of India (RBI) next year that will be based on Blockchain technology.

According to Sathvik Vishwanath, Co-founder and CEO, Unocoin, “the cryptocurrencies industry is fast evolving and hence it would need regulations to be constantly updated”.

“It is unlikely to be successful if we just try to bring guidelines for cryptos,” he said.

Not only cryptocurrencies, investors of DeFi (decentralised finance) platforms also need to exercise “caution and scrutiny” amid growing concerns about the liquidity of this certain type of cryptocurrency service, experts have warned.

The warning came as Celsius Network, a DeFi platform and one of the largest crypto lenders, announced that it was “pausing all withdrawals, Swap, and transfers between accounts” for its 1.7 million clients.

“The wider crypto ecosystem has been rocked again — not by ‘real’ cryptocurrencies like Bitcoin, but by DeFi,” said Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisories.

“There are legitimate and serious concerns about networks’ high yields, links to failed dollar-pegged stablecoin Terra, and reserves,” said Green, urging people to exercise caution and scrutiny on crypto lending firms which offer clients lucrative double-digit yields on assets like Bitcoin and Ethereum.

Decentralised finance or DeFi offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a Blockchain.

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Cryptocurrency exchange Coin base quit India operations

The crypto exchange reported its first net loss as a public company of $430 million in the first quarter this year…reports Asian Lite News

Top cryptocurrency exchange Coinbase quit India operations owing to “informal pressure” from the Reserve Bank of India (RBI), its CEO Brian Armstrong has revealed for the first time.

The US-based and Nasdaq-listed exchange had halted payments via unified payments interface (UPI) mode on its app in India last month.

In the company’s earnings call late on Tuesday, Armstrong said that the company disabled the UPI “because of some informal pressure from the Reserve Bank of India”.

“There are elements in the government there, including at the Reserve Bank of India, who don’t seem to be as positive on it. And so they — in the press, it’s been called a ‘shadow ban’, basically, they’re applying soft pressure behind the scenes to try to disable some of these payments, which might be going through UPI,” Armstrong told analysts.

The crypto exchange reported its first net loss as a public company of $430 million in the first quarter this year.

The revenue dropped 27 per cent to $1.17 billion, down from $1.6 billion in the first quarter of 2021 and monthly users were also decreased by more than 19 per cent to 9.2 million, as the global crypto market goes through a mayhem.

Armstrong said that the RBI’s move “may be actually in violation of the Supreme Court ruling, which would be interesting to find out if it were to go there”.

“Now the press is talking about it in India. Now there’s meetings happening that are going to talk about how we get to the next step. So that’s generally our approach with international expansion,” he added.

The exchange had launched its crypto trading services in India on April 7.

The goods and services tax (GST) council is reportedly mulling a 28 per cent tax on cryptocurrencies.

The Ministry of Finance has already imposed a 30 per cent tax on profits made from the transfer of crypto assets and non-fungible tokens (NFTs).

India distinguishes between cryptocurrencies and crypto assets, and Union Finance Minister Nirmala Sitharaman during the Union Budget 2022-23 in February announced a 30 per cent tax on income from these transactions, which includes a 1 per cent deduction at source.

Her proposal of levying a 30 per cent tax on crypto earnings came into effect on April 1.

The 28 per cent GST will be in addition to the 30 per cent income tax on earnings from crypto asset transactions.

There is also 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets are also taxed.

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