Crypto News Round-up (October 9th - October 13th 2023)
In this week’s crypto news round-up:
- Israel Authorities Freeze Crypto Accounts Linked to Hamas on Binance
- Genesis Crypto Broker Faces Withdrawal Suspension Amid Financial Troubles
- Stolen Funds Returned to Huobi's HTX Exchange After Attack
- Terraform Labs Accuses Citadel Securities of Stablecoin Depegging Conspiracy
Israel Authorities Freeze Crypto Accounts Linked to Hamas on Binance
Israel's police Cyber Unit has announced a joint effort with cryptocurrency exchange Binance to freeze multiple cryptocurrency accounts associated with Hamas. This collaboration involved the Ministry of Defense, Israel Security Agency, and other national intelligence agencies. These measures were taken in response to deadly attacks by Hamas against Israel.
Binance cooperated with Israeli authorities in identifying and deactivating these accounts, which Hamas had used for fundraising through various social media platforms. The proactive involvement of Binance in supporting global law enforcement agencies and regulators in combating terror financing was emphasised.
Furthermore, Israel's Police Cyber Unit, in collaboration with British police, froze a Barclays Bank account in the UK that Hamas had used for donations.
Genesis Crypto Broker Faces Withdrawal Suspension Amid Financial Troubles
Genesis, a well-known crypto broker, has suspended cryptocurrency withdrawals again, sparking concerns within the crypto community. This development comes in a challenging year for the company, which filed for bankruptcy earlier.
While official communication from Genesis has been limited, reliable sources confirm the withdrawal suspension, suggesting underlying financial difficulties. Genesis filed for bankruptcy under Chapter 11 of U.S. bankruptcy law, indicating its intent to restructure its debt and continue operations.
Despite its commitment to implementing strategic actions, the recent suspension of withdrawals raises doubts about the company's stability. Some of Genesis' affiliated companies remain operational, indicating that previous measures may not have been sufficient to address the company's financial issues. Insufficient cash reserves to cover customer receivables are a significant concern, considering that active customer accounts still exist.
Stolen Funds Returned to Huobi's HTX Exchange After Attack
In late September, Huobi's global exchange HTX fell victim to a cyberattack, resulting in a substantial loss of nearly $8 million. The attacker managed to abscond with 4,997 ETH, equivalent to approximately $7.9 million, from the exchange's hot wallet. HTX CEO Justin Sun promptly identified the attacker and urged them to return the stolen funds in exchange for a 5% white hat reward within a week, vowing not to pursue legal action.
On October 8th, the funds were successfully returned to the exchange's hot wallet, confirmed by security researcher ZachXBT and CEO Justin Sun himself. Notably, the entire amount was returned, and HTX subsequently awarded the hacker the promised white hat bonus of 250 ETH. Justin Sun expressed gratitude to the industry for its support.
Terraform Labs Accuses Citadel Securities of Stablecoin Depegging Conspiracy
Terraform Labs, the organisation behind Terra (LUNA) and TerraUSD (UST), has alleged that market maker Citadel Securities engaged in a deliberate effort to cause the devaluation of its stablecoin in May 2022. Terraform Labs filed a lawsuit on October 10th with the United States District Court in the Southern District of Florida, requesting Citadel to produce documents related to its trading activities during the time when TerraUSD (UST) depreciated from $1 to $0.02. Terraform Labs, founded by Do Kwon, claims that the depegging resulted from third-party market participants shorting the stablecoin rather than a flaw in its algorithm.
Josephine Inika
Despite Citadel Securities publicly denying involvement in UST trading during the event, Terraform has uncovered potential evidence connecting Citadel Securities to the May 2022 depeg. Additionally, the SEC initiated a lawsuit against Terraform Labs and its founder in February, accusing them of involvement in crypto asset securities fraud.
Disclaimer: The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.
