Connect with us

Event

US Goverment Returns Stolen Bitcoin to Crypto Exchange Bitfinex From $65 Million Hack

Published

on

RECOVERED BTC TO REIMBURSE RECOVERY RIGHT TOKEN HOLDERS

Acochain.com – Following the hacking event, Bitfinex launched an investigation with the assistance of enforcement agencies internationally, to trace the 119,756 BTC that vanished from the exchange’s premises. According to the recovery strategy outlined after the incident, Bitfinex generalized the losses from every account and credited a USD-pegged token dubbed BFX in an equivalent amount to the damages each customer suffered. Subsequently, Bitfinex gave its customers the option to either redeem their tokens for cash or exchange their BFX for the shares of iFinex Inc., the company that owns and operates Bitfinex.

All BFX tokens were destroyed during this process, and stockholders received the Recovery Right Token (RRT) which represented their respective amount in iFinex’s shares. Bitfinex, which was initially notified by the U.S. government about the retrieved funds last November, will now convert the 27.7 BTC in U.S. dollars and distribute them across the RRT holders.

In his official statement, Giancarlo Devasini, CFO at Bitfinex expressed his gratitude to the contribution of the U.S. government. He added:

We will continue to assist law enforcement with their inquiries, and also once again extend an open invitation to the hackers, or anyone harbouring information pertaining to the breach, to make contact in whichever medium they feel most secure with, to finally resolve the situation in a mutually beneficial manner.

THE RECOVERY INCREASES TRUST IN CRYPTOCURRENCIES

The security breaches of crypto exchanges have been one of the main stress-points of cryptocurrencies since their inception and the inability to reverse transactions one of their main weaknesses compared to the traditional banking system. A decade after bitcoin launched, we keep experiencing issues concerning the safe storage of assets, the latest being the Cryptopia hack where more than $3 million disappeared.

While the amount of BTC recovered from the Bitfinex hack may seem insignificant as it represents only 0.023% of the total lost funds, the recovery demonstrates the power of blockchain technology and the ability to correct malicious human activities.

Hackers have employed numerous practices to exploit the vulnerabilities of centralized entities and countermeasures often seem to be one step behind them. Decentralized exchanges, such as the Binance DEX, and cold wallets could be an effective way to mitigate fraudsters’ power but cannot eliminate them. Additionally, crypto traders need timely access to their funds, hence storing assets in exchanges is essential.

High levels of security will be the cornerstone that will pave the way for the mainstream use of cryptocurrencies and such developments can increase people’s faith towards them. (CCN)

Event

Global Banking Giant HSBC Launches Tokenization-Based Receivables System for India

Published

on

Acochain.com – Major global banking group HSBC has implemented tokenization technology into its receivables infrastructure for corporate clients in India, according to an announcement on June 18.

The British multinational financial services company has reportedly launched its Digital Accounts Receivable Tool (HSBC DART), based on tokenization technology developed by Australianblockchain-powered Fintech company Identitii Ltd., the firm said in the announcement.

According to the statement, HSBC DART was developed for HSBC’s Global Liquidity and Cash Management (GLCM) business and deploys Identitii’s approach to tokenization within HSBC’s existing infrastructure of receivables to enhance involved processes.

The instrument is designed to automate the accounts receivable (AR) process for HSBC’s corporate customers and their network of buyers, enabling a secure communication layer between network participants and reducing manual work such as invoice payments documentation. Accounts receivable is the balance of money owed to a firm for services or goods provided or used but not yet paid by customers.

In the announcement, Identitii revealed HSBC’s plans to expand HSBC DART in new markets in Asia.

Originally founded in 1865 in British Hong Kong, United Kingdom-based HSBC was the 7th largest bank in the world by 2018, and the largest in Europe, with total assets of about $2.6 trillion. In mid-March 2019, HSBC was reported to be seeking banking partners in South Korea to deploy the blockchain platform Voltron.

Previously, HSBC reported that implementation of blockchain tech in its forex trade settlement reduced costs of operations by 25%. (cointelegraph)

Continue Reading

Event

Coincheck Launches OTC Crypto Trading for Institutions

Published

on

Acochain.com – Japanese cryptocurrency exchange Coincheck has launched an over-the-counter (OTC) cryptocurrency trading service aimed at institutional clients, the firm said Monday.

While the service seem primarily to serve bitcoin trades, Coincheck said it will consider trades in other cryptocurrencies.

Coincheck said its OTC trading desk will allow customers to buy and sell a minimum of 50 bitcoins ($205,423 at press time) “quickly” at one go and at “attractive prices.” The service is available on weekdays between 10 a.m. (13 UTC) and 3 p.m. (18 UTC) Japan time.

In an OTC trading service, two parties trade directly with each other, unlike on an exchange where orders are matched between buyers and sellers.

Coincheck suffered a $530 million hack in January 2018, losing around 500 million NEM tokens from its digital wallets. The exchange was then acquired by Japanese online brokerage Monex Group for $33.5 million in April last year.

The cyber-attack also forced Coincheck to suspend its services for some months. By November, however, it had reinstated services for all listed cryptos on its platform.

Coincheck has since received a regulatory license in Japan and is now a registered entity with the Kanto Financial Bureau under the country’s Payment Service Act. It’s previously said it plans to resume other features, including leveraged transactions, Japanese yen depositing through convenience stores and a scheme that lets users pay utility bills with crypto.

A number of exchanges have recently moved to launch OTC trading services. Last week, the U.S. affiliate of the Huobi Global launched an institutional group for OTC cryptocurrency trading. While earlier this year, Bithumb Global and Bittrex also launched similar services. (coindesk)

Continue Reading

Event

Swiss Federal Assembly Approves Instructions on Cryptocurrency Regulation

Published

on

Acochain.com – The legislative body of the Swiss government, the Federal Assembly, has approved a motion to instruct the Federal Council to adapt existing legislation for cryptocurrency regulation. Coitelegraph auf Deutsch reported on the development on March 20.

The motion introduced by Liberal assemblyman Giovanni Merlini intends to instruct the Federal Council to adapt existing provisions on procedural instruments of judicial and administrative authorities, so that they can also be applied to cryptocurrencies. The Council approved the motion introduced with 99 to 83 votes in favor and 10 abstensions.

The move aims to close perceived gaps in protecting cryptocurrency users from illicit activities like extortion and money laundering. The legislation is set to determine how to stifle cryptocurrency-associated risks, as well as whether entities operating crypto trading platforms should be equated with financial intermediaries, and thus be subject to financial market supervision.

Following the approval, Swiss finance minister Ueli Maurer reportedly stated that the proposed developments exceeded the scope of the planned regulation.

Last December, Maurer indicated that instead of a specific blockchain or cryptocurrency legal framework, Switzerland should tweak existing laws to allow for the new technology and its financial application.

Earlier in March, the Basel Committee on Banking Supervision (BCBS), a Swiss-based international banking authority, warned that the robust growth of the crypto industry could potentially “raise financial stability concerns and increase risks faced by banks.” The BCBS also argued that crypto assets are “unsafe to rely on” as a medium of exchange or store of value — two of the main functions of money — implying that “cryptocurrency” is a misnomer. (cointelegraph)

Continue Reading

Event

Crypto Exchange Bittrex International to Host Its First Public ‘Initial Exchange Offering’

Published

on

Acochain.com – Crypto exchange Bittrex is hosting its first token sale — dubbed an Initial Exchange Offering (IEO) — on Bittrex International, its Malta-based digital asset trading platform. The news was announced in an official press release published on March 11.

Bittrex International, which operates within an EU and Maltese crypto regulatory framework, will officially start the IEO on Friday, March 15, the press release announces. Bittrex users will be able to use Bitcoin (BTC) to purchase “XRD” tokens, developed by international gaming data blockchain project Raid.

According to the press release, Raid is a project that rewards gamers for sharing data,as part of a tokenized ecosystem that aims to enhance marketing and business growth and foster other improvements for gaming companies.

Bittrex CEO and co-founder  Bill Shihara has said that IEOs on the platform will allow international token investors to back new blockchain projects “with the peace of mind that comes from Bittrex International regulated in Malta.”

Bittrex has outlined the details of the IEO, which will end when a hard cap of 17 billion XRD (~$6 million) is reached.

Bittrex is currently within the top 50 largest crypto exchanges globally by adjusted daily trade volume, seeing about $73 million in trades on the day to press time.

Bittrex International’s foray into token sales follows major crypto exchange Binance’s token sale platform Launchpad, which recently hosted the high-profile — and extremely swift — token sale for the Tron-based BitTorrent token (BTT) this January. The BTT sale netted $7.1 million dollars with the sale of 50 billion tokens within 15-18 minutes. (cointelegraph)

Continue Reading