Customer Funds

CZ

2026-09-28 04:02:37

CZ says a single tweet did not directly cause FTX to collapse

Binance founder Changpeng Zhao, better known as CZ, said in an interview with When Shift Happens that a single tweet could not directly bring down a company that was operating soundly. He said FTX’s failure stemmed from its own liquidity shortfall and misuse of customer funds, not from one public post on social media. According to CZ, his action at the time was limited to disclosing Binance’s plan to gradually sell its remaining FTT holdings, and he did not expect the fallout to become so large. The comments revisit one of the most disputed moments in the FTX crisis, which unfolded after concerns over the exchange’s balance sheet intensified. CoinDesk had already reported earlier that FTX might be insolvent. The Techub item cited @WuBlockchain in relaying the remarks.

260

CFTC

2026-09-26 23:06:05

CFTC FAQ update allows FCMs to invest customer funds in permitted tokenized assets

The U.S. Commodity Futures Trading Commission updated its crypto asset FAQ on Sept. 24 through three of its divisions, setting out new staff guidance for futures commission merchants, or FCMs. Under the update, FCMs may invest customer funds in permitted tokenized assets, but only if those assets give holders the same legal and economic rights, or rights that are functionally equivalent, to those attached to traditional forms of the asset. The assets must also be held with a compliant custodian. The FAQ also says regulatory records may be maintained on a blockchain without keeping a separate off-chain copy. At the same time, payment stablecoins remain ineligible as an investment for customer funds. The CFTC said the guidance reflects staff views and does not carry the force of law.

290

BitMart

2026-08-10 14:32:30

BitMart founder denies exit scam as withdrawal complaints mount after wind-down

BitMart is facing mounting complaints from customers who say withdrawal requests remain pending weeks after the exchange’s July 26 “orderly wind-down” announcement. The company had said withdrawals would remain available, but users on social media claim they still cannot access funds, with one customer alleging that $10.1 million remains stuck on the platform and another saying only $5 was released from a roughly $24,000 request. Complaints have also come from crypto projects including Gen6, Paxi Network, and Scandic Coin, each describing delayed or refused withdrawals after July 26. On Saturday, founder Sheldon Xia responded after two weeks of silence, denying that BitMart had disappeared or misappropriated user assets. He said the team is still tallying and consolidating holdings and raised the possibility of using courts and independent third-party auditors to produce a transparent report. His statement, however, included no figures, no timetable, and no proof of reserves. Blockchain tracking data cited in the report adds to scrutiny. Arkham Intelligence data attributed to BitMart showed holdings falling from about $102 million on July 6 to $69 million by July 27, while BMX dropped 81% in a week. DefiLlama’s estimate was far lower, at about $2.6 million in assets.

2080

ZEUS

2026-08-05 23:09:38

ZEUS Takes Infrastructure Offline After Cyber Incident, Says No Customer Funds Lost

ZEUS said it temporarily took its infrastructure offline after a cybersecurity incident in the past few hours, according to a statement relayed by Bitcoin News on X. The attack has been mitigated, but services will remain offline until the company completes a full security audit and resumes operations. ZEUS said no customer funds were lost and none are currently at risk. Customers whose Lightning Service Provider channels were closed will receive replacement channels after service is restored. The investigation so far indicates the incident appears limited to ZEUS's own infrastructure, with no evidence of a Lightning node software vulnerability. ZEUS also noted it has been using a trusted execution environment and the Validating Lightning Signer project to strengthen its infrastructure, with the project aimed at mitigating such attacks in its upcoming architecture. ZEUS said it would provide further updates as the investigation continues.

1860

ZEUS

2026-08-05 23:09:51

ZEUS Takes Lightning Infrastructure Offline After Security Incident

ZEUS said in a post published by Bitcoin News on X that a cybersecurity incident over the past few hours had led it to temporarily take its infrastructure offline. ZEUS said the attack has been mitigated, but services will remain offline until a full security audit is completed and operations are restored. According to ZEUS, no customer funds were lost and none are currently at risk. Customers whose Lightning Service Provider (LSP) channels were closed will receive replacement channels after services are restored. ZEUS noted that, based on the current investigation, the incident seems to be limited to its own infrastructure and there is no evidence that it was caused by a vulnerability in Lightning node software. ZEUS also said it has been using trusted execution environments and the Validating Lightning Signer project to strengthen its infrastructure, describing that project as aimed at mitigating such attacks in its upcoming architecture. ZEUS said it will continue to provide updates as the investigation progresses.

1700

Knaken

2026-07-22 12:08:13

Knaken Faces Bankruptcy Filing as Nearly 30,000 Customers Remain Locked Out of Funds

Dutch prosecutors have asked the court to declare Knaken bankrupt, saying the platform operated without the required AFM license and still has not repaid customers after halting operations.

1800

Netherlands

2026-07-18 04:54:41

Dutch court declares crypto platform Knaken bankrupt

A Dutch court has declared crypto platform Knaken bankrupt, according to a Techub News brief citing Cointelegraph. Prosecutors said around €7 million, or about $8 million, in customer funds is missing, while the company’s remaining assets are not sufficient to repay users. The case centers on a shortfall in customer funds, and the exact flow of the money has not yet been clarified. The ruling means users of the platform may face a lengthy debt repayment process. The development has also drawn attention to fund safety and compliance issues at crypto platforms.

1810

FTX

2026-07-10 05:26:13

FTX Trial: Former Employee Reveals $8 Billion Code Glitch and Bankman-Fried’s Personal Entanglements

Adam Yedidia, a former FTX employee and close friend of Sam Bankman-Fried, testified about an $8 billion code glitch, misuse of customer funds, auto-deleting messages, and SBF’s intimate relationship with Alameda CEO Caroline Ellison. A UK trader also detailed a £100,000 loss due to trusting FTX.

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