Kategorie: Ethereum News

Ethereum news about the ETH blockchain and its crypto ecosystem.

Veröffentlicht am

Plus Token Ponzi scheme wallets moved $63M ETH after years of inactivity

  • Plus Token wallets moved $63.1M ETH after three years of inactivity.
  • Dormant funds, once held in Bidesk, were partially transferred to Huobi.
  • The move could cause market panic; ETH is currently valued at $2,379.35.

In a dramatic development, cryptocurrency wallets linked to the notorious Plus Token Ponzi scheme have moved a staggering $63.1 million worth of Ethereum (ETH) after more than three years of dormancy.

The sudden shift of assets, which amounts to 25,757 ETH, has sparked concerns about potential market volatility.

Wallets were last active in 2021

According to on-chain data analyst EmberCN, the dormant wallets associated with the Plus Token Ponzi scheme were last active in April 2021.

On-chain data shows that the Plus Token Ponzi scheme orchestrators had moved 789,534 ETH, previously held in a “Plus Token Ponzi 2” wallet, to the Bidesk exchange through multiple addresses between June and September 2021. However, the Bidesk exchange went bankrupt at the end of 2021, and forcing the tokens to be transferred to Huobi.

Most of the 789,534 ETH tokens were sold in 2021, leaving a small part unsold. Part of the remaining tokens is what has been moved over the past two days. In total about 12 addresses have received 25,757 Plus Token-related ETH worth about $63.1 million over the past two days.

Part of these ETH were not transferred to Bidesk in 2021; part were withdrawn from Bidesk but not transferred to Huobi.

This significant movement of funds follows the scheme’s collapse and subsequent crackdown by Chinese authorities, who seized a vast array of crypto assets.

Plus Token Ponzi scheme crackdown

During the crackdown, Chinese officials confiscated approximately $4.2 billion worth of assets, including 194,775 Bitcoin (BTC), 833,083 ETH, 497 million Ripple (XRP), and 6 billion Dogecoin (DOGE), among others.

The value of these assets has surged to approximately $13.5 billion, reflecting current market prices.

The reactivation of the Plus Token Ponzi scheme-linked wallets and the potential for a future sell-off could trigger significant panic within the cryptocurrency market.

As of the latest updates, ETH’s price stands at around $2,379.35, with minimal fluctuation observed so far.

However, market observers are closely watching the situation to gauge the potential impact on Ethereum and broader crypto assets.

The post Plus Token Ponzi scheme wallets moved $63M ETH after years of inactivity appeared first on CoinJournal.

Veröffentlicht am

Bitcoin tumbles, tests $49,000, amid major crypto selloff

  • Bitcoin briefly tests $49k before rebounding to $51k amid a $270 billion crypto market selloff.
  • Concerns over the US recession and Japan’s rate hike trigger market turmoil.
  • FBI warns of rising crypto scams during increased market volatility.

The cryptocurrency market has experienced a significant downturn today, shedding approximately $270 billion in value over 24 hours according to CoinGecko data. Leading this decline, Bitcoin plummeted by almost 20%, reaching $49,121, its lowest level since February at $53,091.

Bitcoin price chart

Ether also suffered a substantial drop of 21%, falling to $2,300, erasing its gains for the year. Other cryptocurrencies like Binance’s BNB and Solana have also suffered significant losses.

Bank of Japa hikes its benchmark interest rate

This dramatic downturn in the crypto market coincided with a broader selloff in equities, particularly in Asia-Pacific markets, exacerbated by Japan’s Nikkei 225 falling by as much as 7%.

The Bank of Japan’s decision to hike its benchmark interest rate to the highest level in 16 years triggered this selloff, sending shockwaves through financial markets.

The US Nasdaq also slid into correction territory, marking its worst three-week stretch since September 2022, further contributing to the decline in risky assets, including cryptocurrencies.

The market’s reaction was influenced by Japan’s monetary tightening and the US Federal Reserve’s recent actions.

Although the Fed opted to hold its benchmark rate steady, it did not indicate a rate cut in September, which many market experts had anticipated.

This uncertainty added to the market’s anxiety, causing traders to price in a 100% chance of lower US base rates in September.

Concerns of a potential US recession

The selloff reflects growing concerns about a potential US recession, triggered by softer economic data and rising geopolitical tensions.

Tony Sycamore, a market analyst at IG, highlighted that Bitcoin and other cryptocurrencies are risk assets and are highly susceptible to market volatility. He noted that Bitcoin is currently testing crucial support levels and must hold the $53,000 mark to prevent further declines.

However, at press time Bitcoin was trading at $51,657, well below this support level, despite making a comeback from around $49k.

FBI issues warning

The cryptocurrency market’s volatility has also heightened security concerns. The FBI has issued a warning about scammers exploiting the market crash to steal users’ funds.

The FBI advised users to be cautious of unsolicited messages or calls indicating account problems and urged them to verify any issues through official channels. The agency’s warning comes amid a significant increase in crypto-related fraud and hacking incidents.

In the first half of 2024, hackers stole nearly $1.4 billion worth of crypto, more than double the amount stolen in the same period in 2023.

This increase is attributed to the rising value of various tokens, including Bitcoin, Ethereum, and Solana. Ari Redbord, global head of policy at TRM Labs, noted that while the security of the cryptocurrency ecosystem has not fundamentally changed, the higher value of tokens has made them more attractive targets for criminals.

As Bitcoin and other cryptocurrencies navigate these turbulent times, investors and users should remain vigilant about market conditions and potential security threats.

The post Bitcoin tumbles, tests $49,000, amid major crypto selloff appeared first on CoinJournal.

Veröffentlicht am

Genesis Trading prepares to return $3B to customers, transfers 32,256 BTC

  • Genesis transferred $2.12B in BTC and $838M in ETH as part of bankruptcy restructuring.
  • Genesis will return $3B to creditors, covering 77% of customer claims.
  • Digital Currency Group will not receive any payout from Genesis’s bankruptcy plan.

Over the past three days, Genesis Trading has moved approximately 32,256 BTC, valued at around $2.12 billion, and 256,775 ETH, worth about $838 million, to various addresses.

This substantial transfer of assets is seen as part of the company’s efforts to manage creditor repayments under its ongoing financial restructuring plan.

Genesis Trading settlement plan has been approved

The turmoil for Genesis began in November 2022 with the collapse of the FTX crypto exchange, which severely impacted the firm’s derivatives business.

Genesis halted withdrawals and filed for Chapter 11 bankruptcy protection in January 2023 due to substantial losses linked to the FTX debacle and the failure of Three Arrows Capital.

At that time, the company owed over $3.5 billion to its top creditors.

Amidst this challenging backdrop, Genesis has recently reached a court-approved settlement plan, aimed at returning $3 billion to its customers. This plan will cover approximately 77% of the total value of customer claims.

In the immediate aftermath of Genesis’s bankruptcy filing, claims were trading at only 35% of their value on claim trading platforms. However, current trading prices for claims are significantly higher, with claims over $10 million trading between 97-110% of their value and smaller claims trading between 74-94%.

Digital Currency Group (DCG) to miss out on this settlement

Digital Currency Group (DCG), the parent company of Genesis, will not benefit from this settlement. The court has ruled that there is insufficient value in Genesis’s estate to provide DCG any recovery as an equity holder.

This decision was influenced by DCG’s failed attempt to cap customer claims at January 2023 cryptocurrency values, which would have allowed for full repayment to customers and potentially a recovery for DCG.

Additionally, DCG had assumed $1.1 billion of Genesis’s debt from the Three Arrows Capital collapse, but this obligation did not cover the losses.

The post Genesis Trading prepares to return $3B to customers, transfers 32,256 BTC appeared first on CoinJournal.

Veröffentlicht am

Hong Kong’s largest online broker Futu Securities launches Bitcoin and Ethereum trading

  • Futu Securities launches Bitcoin and Ethereum trading in Hong Kong with zero fees.
  • New users can receive incentives like Bitcoin or shares of Alibaba and Nvidia.
  • Futu seeks a crypto exchange license for PantherTrade amid Hong Kong’s crypto hurdles.

Futu Securities International, Hong Kong’s largest online broker, has introduced retail cryptocurrency trading in the city, marking a significant advancement in its financial services.

The brokerage firm, known for its extensive reach and innovative offerings, now allows residents to trade Bitcoin and Ethereum on its platform. This initiative comes after a partnership with HashKey Exchange, one of only two licensed cryptocurrency exchanges in Hong Kong.

Bonuses and waived crypto trading fees

The launch comes with enticing bonuses. New account holders who deposit HK$10,000 (approximately $1,280) for 60 days can receive either HK$600 worth of Bitcoin, a HK$400 supermarket voucher, or a share of Alibaba.

Those who deposit HK$80,000 are eligible for HK$1,000 in Bitcoin or a share of Nvidia, whose stock has surged by about 130% this year.

Additionally, Futu has waived commission fees for crypto trading starting August 1st, enhancing the appeal of their new service.

Futu looking for a crypto exchange license in Hong Kong

Futu is also pursuing a cryptocurrency exchange license for its new platform, PantherTrade, which currently operates under a ‘deemed to be licensed’ status.

PantherTrade is among 11 platforms in Hong Kong awaiting full approval from the Securities and Futures Commission (SFC).

Hong Kong crypto industry challenges

Despite these advancements, Hong Kong’s aspiration to become a global crypto hub faces hurdles. The city has experienced the exit of major global trading platforms and low trading volumes for crypto ETFs.

Increased fraudulent activities, such as a recent scam involving counterfeit currency, have further complicated the situation.

In response, Hong Kong authorities are enhancing their regulatory measures and law enforcement capabilities to address these issues and boost investor confidence.

As Futu Securities deepens its presence in the cryptocurrency market, the success of its initiative will depend on balancing innovation with stringent oversight to ensure a secure trading environment.

The post Hong Kong’s largest online broker Futu Securities launches Bitcoin and Ethereum trading appeared first on CoinJournal.

Veröffentlicht am

M2 crypto exchange to allow UAE residents to trade crypto using bank accounts

  • M2 enables UAE residents to trade BTC and ETH directly with bank accounts.
  • Integration supports dirham deposits, withdrawals, and market-responsive trading.
  • UAE has strict regulations to ensure consumer protection and market transparency.

In a significant development for the digital asset market in the United Arab Emirates (UAE), M2, a prominent crypto exchange, has announced that UAE residents can now buy and sell Bitcoin (BTC) and Ethereum (ETH) directly using their bank accounts.

This new integration facilitates the direct conversion of UAE dirhams into BTC and ETH through M2’s spot market, marking a milestone in the accessibility of virtual assets in the region.

M2 users can seamlessly convert dirhams into BTC and ETH and vice versa

In an announcement shared with Cointelegraph, the M2 exchange highlighted that the new feature will enable users to convert dirhams into Bitcoin and Ether seamlessly through the trading pairs listed on M2’s spot markets.

Additionally, the platform supports the deposit and withdrawal of dirhams, offering users greater flexibility in managing their assets.

The M2 team emphasized that this integration would enable users to “swiftly adapt to market changes,” allowing them to easily convert their local currency into crypto.

This is particularly beneficial for everyday investors who may not be fully immersed in the complexities of the trading environment.

According to M2, the higher levels of familiarity and significant trading volumes of BTC and ETH make these cryptocurrencies ideal entry points for new investors looking to enter the digital asset space.

UAE has the strictest regulatory framework globally

Regulated by the UAE government, which is known for its stringent consumer protection measures, this move reflects the country’s commitment to safeguarding its residents in the evolving crypto landscape.

The UAE has established a reputation for having one of the strictest regulatory frameworks globally, prioritizing consumer protection. In 2022, Dubai’s Virtual Asset Regulatory Authority (VARA) mandated greater transparency in crypto advertisements to better protect consumers.

Moreover, in 2023, the UAE introduced a federal law aimed at preventing fraud in the crypto market, imposing fines of up to 10 million AED ($2.7 million) for violations.

Commenting on the integration, Kimmel, an executive at M2, noted that the ADGM’s licensing process was demanding due to its high standards for multilateral trading facility permits. However, he affirmed that this rigorous due diligence ensures that licensed platforms meet the country’s security and transparency standards, thereby fostering trust among UAE users.

Despite the challenges associated with the licensing process, the UAE continues to be a strategic region for the crypto industry.

Favourable tax policies, access to global markets, and a safe environment for innovation make the UAE an attractive destination for crypto businesses.

This new development by M2 is set to further enhance the accessibility and appeal of virtual assets in the UAE, making it easier for residents to participate in the burgeoning crypto market.

The post M2 crypto exchange to allow UAE residents to trade crypto using bank accounts appeared first on CoinJournal.