Binance

8 hours agoNews Editor

Users shift funds to OKX after Binance hack, Star Xu says OKX faces APT attacks every month

After Binance was hit by a hack involving about $6.3 billion, some users began spreading funds across other exchanges. On Nov. 1, OKX founder Star Xu responded on X to a user who said they had moved part of their holdings to OKX, saying the exchange detects and responds to a range of cyber threats every month, including advanced persistent threat, or APT, attacks targeting the crypto sector. Xu said OKX would also "seriously learn lessons" from recent security incidents affecting industry peers. The user said they entered the crypto market in 2023 and 2024 and had seen Bybit, Gate, Bitget and Binance all suffer hacks over the past three years. They said Binance’s latest incident hit hardest because about 80% of their assets were held there, and they had even consolidated funds from other exchanges into Binance eight hours before the theft. Xu added that OKX launched automated penetration testing based on large language models more than a year ago. Binance said later on Nov. 1 that it had resumed withdrawals for assets including BTC, USDT and USDC and had replenished about 95% of the affected amount.

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Dubai

25 days agoNews Editor

Dubai VARA sets minimum reserve asset audit requirements for VASPs

Dubai’s Virtual Assets Regulatory Authority (VARA) issued a reserve asset audit circular on Oct. 6, setting out the minimum requirements for independent audits of virtual asset service providers, or VASPs. Under the circular, a VASP must maintain reserves equal to at least 100% of customer liabilities throughout the full review period. Those reserves must be held in the same virtual assets on a 1:1 basis, with daily reconciliations required. The audit scope must cover hot wallets, warm wallets, cold wallets, third-party wallet infrastructure, and assets held with third-party custodians. Auditors are also required to verify whether customer assets are properly segregated, whether wallet control remains with the relevant party, and whether any assets have been used for rehypothecation, lending, or other purposes. The notice lays out a clear baseline for how reserve assets should be examined during independent reviews of VASPs operating under VARA’s oversight.

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Changpeng Zhao

2 months agoNews Editor

CZ says CoinEx shutdown still lets users withdraw, unlike QuadrigaCX-style fallout

Changpeng Zhao commented on CoinEx’s shutdown notice by saying that, in this bear market, several platforms that have recently closed at least allowed users to withdraw their assets. He contrasted that outcome with what he called a "QuadrigaCX-style" ending from an earlier cycle. According to Foresight News, QuadrigaCX, a Canadian crypto exchange, halted operations in 2019 and became a negative industry case after failing to repay customer funds. About 76,000 customers were owed roughly C$215 million in assets. The bankruptcy trustee later recovered about C$46 million, leaving customers with aggregate losses of at least C$169 million. Zhao’s remark focused on the difference in how user asset withdrawals were handled, rather than adding any new details about CoinEx beyond the shutdown-related notice he reposted.

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BitMart

2 months agoNews Editor

BitMart skips roadmap release on deadline, names Alvarez & Marsal as financial adviser

BitMart said Wednesday that it has appointed Alvarez & Marsal as its financial adviser, meeting its self-imposed Sept. 9 deadline for an update but stopping short of releasing the restructuring and business resumption roadmap it had previously said it was preparing. According to the exchange, Alvarez & Marsal will work alongside BitMart’s legal advisers to review the company’s assets, financial position, stakeholder issues and possible next steps. The review will also take into account proposals submitted by unnamed third parties, BitMart said on X. The exchange added that it plans to launch a dedicated web portal within five working days to gather user feedback on its action plan and long-term direction, with more updates on the process expected on a rolling basis over the next three weeks. Echo Base, which organized an ad hoc committee of BitMart claimholders, described the adviser appointment as the most encouraging move BitMart has made since July, while also criticizing the lack of reserve data, asset inventory, recovery estimates and any timetable for withdrawals.

690

Orionx

2 months agoNews Editor

Chile’s Orionx halts withdrawals and begins winding down after audit finds over $7 million moved out

Chilean crypto exchange Orionx has halted withdrawals and started a gradual shutdown after a forensic audit found that more than $7 million had been moved to wallets outside the company’s control, according to a post by Bitcoin News on X. Orionx has filed a criminal complaint naming founders Joaquín Díaz and Roberto Zibert, and said customer assets were used for external trading between 2018 and 2021. Chile’s Financial Market Commission said the exchange continued operating after its fintech business authorization was denied in July. More than 100,000 users now lack any assurance that their assets will be fully returned.

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Cynthia Lummis

4 months agoNews Editor

Lummis releases updated CLARITY Act draft with customer asset segregation rules

U.S. Senator Cynthia Lummis has released an updated draft of the CLARITY Act that would require digital commodity exchanges, brokers, and dealers to segregate customer assets. The proposal would also bar platforms from treating customer funds and assets as their own property. In addition, the draft would classify digital commodities held by a platform on behalf of customers as "customer property" in bankruptcy liquidation proceedings. That change is aimed at reducing the risk that users would be treated as general unsecured creditors if a platform enters bankruptcy. The update centers on custody and bankruptcy treatment for customer-held assets in the digital commodity market.

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Policy Regulation

4 months agoNews Editor

Bill would set rules for customer digital assets in exchange bankruptcies

A Fox Business crypto reporter said in a post on X that a bill lays out how digital assets would be handled if an exchange or custodian enters bankruptcy. According to the post, the proposal is designed to give customer holdings protections comparable to those applied to traditional financial assets. It would also keep those assets classified as customer property, rather than folding them into a company’s bankruptcy estate. The measure, as described, could help reduce the risk of a repeat of cases similar to FTX, where questions over ownership and treatment of customer assets became central. No additional details about the bill’s text or legislative progress were provided in the brief update.

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Policy Regulation

4 months agoNews Editor

Fox Business reporter says bill would define treatment of customer digital assets in bankruptcy

A Fox Business crypto reporter said in a post on X that a bill sets out how digital assets would be handled if an exchange or custody institution enters bankruptcy. According to the post, the measure would help ensure that customer assets receive the same protections as traditional financial assets and remain the property of customers, rather than being folded into a company’s bankruptcy estate. The reporter added that such rules could help prevent a repeat of situations similar to FTX, where the handling of customer assets became a central concern. The statement, as cited by ChainCatcher, focuses on the legal treatment of digital assets held by intermediaries and frames the bill as a step toward clearer customer protections in insolvency cases.

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