Cryptocurrencies To Watch

Author: Sincerity Jahswill

  • Indonesian Crypto Exchange Indodax Suffers $22M Hack

    Indonesian Crypto Exchange Indodax Suffers $22M Hack

    Indodax, the largest crypto exchange in Indonesia, has become the latest victim of a security breach, losing $22 million worth of assets to the explioters.

    Following the unresolved exploit of India’s WazirX, this incident marks the second major hack in the Asian crypto market this year.

    How Did Indodax Lose $22M to Hackers?

    The security breach at Indodax has been flagged by several blockchain security and transaction tracking services including SlowMist, Cyvers, PeckShield, and Spot On Chain. This exploit has sparked concerns about the vulnerability of user funds on centralized crypto exchanges.

    SlowMist’s investigation revealed that the Indodax breach was caused by a vulnerability in the exchange’s withdrawal system, enabling the hacker to withdraw funds from Indodax’s hot wallet.

    The hacker has already swapped most of the stolen tokens for other coins. The current holdings of the hacker include 5,584 ETH ($13 million) on the Ethereum and Optimism network, 6.84 million POL ($2.56 million) on Polygon, 16.7 million TRX ($2.55 million) on Tron, and 25 BTC ($1.41 million). 

    Indodax Reassures Users

    Following the reports from various blockchain security firms, Indodax announced that its security team has detected a potential security issue on the platform, resulting in a maintenance check to ensure the system’s integrity. At press time, users were unable to access the Indodax web and mobile applications.

    The exchange reassured its customers that their balances in both crypto and rupiah, the Indonesian local currency are 100% safe. The maintenance aims to enhance the exchange’s security and convenience of transactions. Indodax will provide further updates once the investigation is complete, keeping users informed about the status of their platform.

    The hack has left Indodax in a vulnerable position. With its growing popularity, the attack’s timing and impact are particularly concerning. The Indonesian platform has expanded its user base from 9.9 million in 2021 to over 28 million in 2024. The recent exploit can reduce users’ confidence in the exchange resulting in their scouting for other exchanges with clean records.

    The growing hacks on centralized exchanges reveal their vulnerabilities and users need to consider alternative secure options like decentralized exchanges (DEXs) and cold storage.

  • Investors to Get Refund in $1 Billion Skyscraper Crypto Scam

    Investors to Get Refund in $1 Billion Skyscraper Crypto Scam

    Investors of an allegedly $1 billion fraudulent crypto scheme are set to receive refunds. The TSSB secured a settlement deal with the perpetrators, Josip Heit, and his Gold Standard Bank (GSB) who made fake promises of tokenized partial ownership of a skyscraper to its customers.

    GSB Investors to Get Refund

    As part of the settlement, Heit and GSB will not face monetary penalties, but instead provide refunds to eligible US customers in the affected states, compensating those impacted by their actions. This includes Arizona, Texas, Alabama, Arkansas, and Georgia.

    Even though Heit and GSB did not admit or deny any law violations, the settlement includes their ceasing from offering unregistered securities in the settling states. On the other hand, The settling states will withdraw all prior allegations of fraud or dishonest practices against the defendant as announced by their attorney, Avi Perry and Alex Spiro.

    While expressing his satisfaction with the verdict, Heit said “We welcome this settlement… We are committed to refunding all eligible customers through the claims process. Our customers always come first. Protecting the brand, our reputation, and our customers is our top priority.”

    Skyscraper Crypto Scam. What happened?

    A large investment scheme involving hundreds of thousands of investors collapsed after failing to raise $175 million through crypto sales linked to a skyscraper project. GSB’s subsequent trading losses in October 2023 worsened the situation, leading to restricted withdrawals for many investors.

    The Texas State Securities Board, which led the investigation, aims to ensure 100% refunds (minus withdrawals) for investors in the U.S. and Canada. AlixPartners, the world’s largest business litigation firm, has been appointed to manage the refunds. They have extensive experience handling high-profile cases, including those involving Bernie Madoff and FTX.

    Having settled with some states, eligible customers who invested in GSB’s products, including crypto tokens and educational programs, may receive a refund if their state joins the settlement.

    The skyscraper scam shows that investors should conduct thorough research before committing funds. They should be cautious of high-risk investments that promise unusually high returns, as these can be fraudulent.

  • Metaplanet Acquires Additional 38.4 BTC with $2.1 Million

    Metaplanet Acquires Additional 38.4 BTC with $2.1 Million

    Japanese investment firm Metaplanet, famously known as “Asia’s MicroStrategy,” has expanded its Bitcoin holdings to over 398 BTC. Its announcement on X (formerly Twitter) indicated that it purchased an additional 38.4 BTC worth around $2.1 million. This further solidifies its position as a major player in the crypto market.

    Metaplanet Purchases More BTC

    Earlier, the firm announced its desire to exercise the 11th series of stock acquisition rights, allowing the management team to purchase company shares at a set price. Since this event was successful, Metaplanet has invested $2.2 million (¥299,700,000) representing 540,000 warrants to acquire Bitcoin. The company will begin delivering shares on September 18.

    By directing funds raised through the stock acquisition rights into Bitcoin purchase, the Japanese firm shows its seriousness about being a “pioneer in the adoption of digital assets in Japan.” The firm has shown that this move is not a short-term reaction to market trends but a calculated approach to solidifying its position in the crypto industry.

    Metaplanet seems committed to holding Bitcoin as a treasury reserve asset, even amidst the current market downturn. By doing so, the company seeks to offer Japanese investors a unique opportunity to gain exposure to Bitcoin while taking advantage of beneficial tax incentives.

    Metaplanet Takes Steps Toward BTC Investment Goals

    Metaplanet has made several notable Bitcoin purchases in the past, including a $3.4 million acquisition of 57 BTC, and a $1.2 million purchase of 20 BTC. These strategic buys reflect the company’s commitment to building its Bitcoin reserves.

    Its BTC purchases echo the investment approach of MicroStrategy. By accumulating Bitcoin, Metaplanet aims to mitigate the risks associated with yen depreciation. This move makes the first and largest crypto a strategic hedge and a major asset in its portfolio.

    Metaplanet has also partnered with SBI VC Trade to enhance its Bitcoin services, gaining access to compliant custody, improved tax efficiency, and BTC-based financing. SBI will provide trading, storage, and operational support. It will also offer tax exemption benefits to support long-term corporate crypto holdings.

  • Ethereum Ex-Adviser Seeks $100M from Law Firm Over Crypto Extortion Case

    Ethereum Ex-Adviser Seeks $100M from Law Firm Over Crypto Extortion Case

    Steven Nerayoff, former adviser to the Ethereum Foundation, has filed a $100 million lawsuit against law firm Covington & Burling, alleging they mishandled his defense in a 2019  crypto extortion case brought by the United States government. He claims this has resulted in significant financial losses and harm to his reputation, hence the legal action.

    Nerayoff Crypto Extortion Case

    In September 2019, the U.S. Attorney’s Office announced the arrest of Nerayoff and his associate Michael Hlady.  It was alleged that the duo who were hired to assist a Seattle-based company with its initial coin offering (ICO), demanded millions of dollars and company tokens, without providing “additional services.” The charges were later dismissed in May 2023.

    Even though the case has been dismissed, unsatisfied Nerayoff claims that Covington lawyer Alan Vinegrad advised him not to share justifying evidence, including videos and emails, with prosecutors. The ex-adviser argued that if these were presented, they would have proven that his dealings were “entirely lawful” and the case would have ended earlier.

    Nerayoff claims that he spent over $1 million in legal fees over the next three years, after Covington & Burling withdrew from representing him following his indictment in January 2020. The accused law firm denied the allegations, calling the lawsuit “meritless” and stating it will vigorously defend against it.

    Nerayoff’s Attorney Seeks $100M

    Nerayoff’s current attorney, Romeo Salta, is seeking significant compensation for damages due to the alleged mishandling of his case by Covington & Burling. The law firm claimed that the indictment resulted in significant harm to their client’s business and reputation. It stated that he was unable to engage in business and lost other contracts in the crypto industry.

    As such, Salta is seeking an amount “to be determined at trial but not less than” $100 million in damages. What this means is that the amount will be determined based on the evidence presented during the trial. Nerayoff’s legal team seems certain that the harm caused by Covington & Burling’s alleged negligence warrants significant compensation. 

    Nerayoff appears to be on a suing spree this year. In April, he filed a $9.6 billion lawsuit against the government. Furthermore, on July 22, Nerayoff filed a $10 million defamation lawsuit against Tyler Fayard, a social media personality known as “Boring Sleuth”

  • Magic Eden Launches US-Exclusive Domain for NFT Operations

    Magic Eden Launches US-Exclusive Domain for NFT Operations

    The NFT marketplace may have created a new website for United States residents because of the recent regulatory crackdown on OpenSea.

    Magic Eden, a prominent non-fungible token (NFT) marketplace, announced its plans to launch a separate domain for United States investors. This update was posted on X, revealing that the new website (magiceden.us) will cater to users based in the U.S. The firm noted that the international site (magiceden.io) will continue to roll out new features and innovations.

    Possible Reason for US-Exclusive Domain

    Recently, there have been regulatory tensions in the U.S., and decentralized finance (DeFi) platforms have not been excluded. For example, the Commodity Futures Trading Commission (CFTC) has charged Uniswap Labs with offering illegal transactions on its platform and ordered them to pay a $175,000 fine.

    Last week, Magic Eden’s competitor, OpenSea, received a Wells notice from the U.S. Securities and Exchange Commission (SEC). This suggests that the regulatory body may also take legal action against rival platforms like Magic Eden, Rarible, and Nifty Gateway.

    With all these legal developments in the country, Magic Eden’s new update might be a response to the growing regulatory pressure in the United States. The firm’s move may be to comply with the legal and regulatory requirements for digital assets like crypto and NFT marketplaces stipulated by the authorities.

    Community Criticize New Announcement

    The firm’s new update has resulted in a negative response from most community members. Users are voicing concerns on social media, particularly on X, about the limitations this new domain may impose. They fear that certain features, such as airdrops, will no longer be available to U.S. residents, effectively restricting their access to services.

    Some also argued that Magic Eden is becoming too centralized. The community is pushing back against what they see as an overly restrictive move, clamoring for a more open approach that doesn’t segregate services based on geographical location.

    Several companies have recently withdrawn from NFTs, suggesting a decline in interest or confidence in the tech. Artificial intelligence (AI) and Decentralized Physical Infrastructure Network (DePIN) projects seem to be the current trends in the crypto market.

  • Binance Permanently Bans CZ from Becoming CEO

    Binance Permanently Bans CZ from Becoming CEO

    Although CZ can no longer become Binance’s CEO, he remains the company’s largest shareholder.

    An Axios report recently revealed that the former Binance CEO Changpeng Zhao (CZ) has been permanently banned from managing Binance, the company he founded in 2017. The latest update comes a few weeks before CZ’s release from the United States prison.

    Before now, several reports implied that CZ would only face a three-year ban from Binance, prohibiting him from returning to the company in any capacity. However, the recent report suggests a different outcome.

    CZ Permanently Banned. In What Sense?

    The report referenced Binance’s current CEO, Richard Teng, as the source of the information. Teng confirmed that CZ received a lifetime ban from “managing” the platform, noting that the ban was a vital condition of the agreement between Binance and U.S. authorities.

    Although CZ stepped down as CEO, he remains the largest shareholder, allowing him to retain significant influence over the company’s direction. He can propose management changes or appoint new board members. Clearly, he was not totally banned from Binance, but only from managerial duties and functions.

    To ensure compliance with the terms of the agreement, two external agents appointed by the Department of Justice (DOJ) will monitor CZ’s adherence to the ban on participating in the management of the exchange.

    Binance and CZ’s New Chapter

    Since the departure of the former CEO,  Binance’s board of directors has expanded to seven members, contrasting CZ’s being the sole director previously. This has further cemented the company’s commitment to regulatory compliance as agreed in its signed terms with the authorities.

    On the other hand, CZ has announced via X tweet that he will not seek executive roles in any companies moving forward. The exchange founder has no further intention of keeping his executive position at Binance but is willing to make a shift in his career.

    Instead of pursuing executive roles, he plans to invest in innovative industries like blockchain, artificial intelligence (AI), and biotechnology. He is eager to explore opportunities in these emerging fields, which will be a new chapter in his career after departing from Binance leadership.

  • Kamala Harris Uses Coinbase to Accept Crypto Donations: Report

    Kamala Harris Uses Coinbase to Accept Crypto Donations: Report

    Coinbase spokesperson clarifies earlier confusion about Haas’ statement concerning Harris’ crypto acceptance.

    During a conversation at Citi’s 2024 Global TMT Conference in New York, Coinbase’s Chief Financial Officer, Alesia Haas, stated that Kamala Harris’ presidential campaign is currently using the company’s commerce platform to accept donations in crypto.

    The information was made public through Fortune, a media outlet claiming to have reviewed the discussion recording between Haas and Citigroup’s director of payments, Peter Christiansen.

    Confusion Surrounds Harris’ Crypto Donations

    The revelation of Harris’ involvement with crypto sparked confusion, as Harris’ official donation page does not mention digital assets. It only shows options to donate through traditional payment methods like Venmo, Google Play, and PayPal.

    Another reason for the seeming confusion is that Crypto4Harris, a group advocating for Kamala Harris to embrace crypto, claims they have no knowledge of her campaign accepting crypto donations.

    The United States Vice President, who hasn’t publicly commented on crypto at all, remained silent on the matter. At press time, she had not made any official statement about it. The Democratic Party has also not been very friendly towards crypto. All these make Haas’ statement even more confusing. However, a clarification was made.

    A Coinbase spokesperson clarified the confusion, explaining that “Future Forward,” the presidential nominee’s super PAC, has set up crypto donations through Coinbase Commerce. This means that the donation option is available for the super PAC but not directly on Harris’s official campaign page.

    Crypto’s Political Adoption Keeps Growing

    While Kamala’s campaign hasn’t taken a clear stance on crypto, her super PAC’s acceptance of crypto donations is noteworthy. This move could also shift to other political systems seeking support, resulting in more adoption of this new technology.

    Donald Trump, the former president and Republican nominee for the 2024 election, has also expressed his backing for crypto. He even went so far as to say that if elected, he would remove Gary Gensler, the current SEC chairman. He has also received donations in crypto.

    The recent involvement of crypto with politics depicts that more adoption is in place for it, as politicians are gradually gearing towards it.

  • Robinhood Agrees to Settle California Authority with $3.9M

    Robinhood Agrees to Settle California Authority with $3.9M

    Robinhood agrees to conform to standards set out by California Commodities Law (CCL).  

    Robinhood Crypto, the crypto-focused division of Robinhood Markets, has agreed to pay $3.9 million to settle alleged violations of California’s consumer protection laws. Having addressed the state’s concerns by agreeing to pay $3.9 million, the subsidiary has resolved the allegations.

    Why Robinhood Agrees to $3.9M Settlement

    The California Department of Justice (DOJ) recently published a press release detailing the consumer protection laws violated by Robinhood. The announcement stated that the popular trading platform sold commodities contracts without allowing customers to withdraw their crypto assets. Users were forced to sell them back to Robinhood to exit the platform.

    DOJ also stated that Robinhood’s advertising was misleading. The company claimed to connect to multiple trading venues to ensure customers received the most competitive prices, but this was not always the case. 

    Additionally, Robinhood assured customers that it held all purchased crypto, when in fact, customer assets were sometimes held by trading venues for extended periods. These practices from 2018 to 2022, led to the previously mentioned settlement.

    What’s Next for Robinhood?

    As part of the settlement, Robinhood is required to make significant changes to its business practices. It must allow customers to withdraw their crypto assets to their wallets, giving them full control over their funds. 

    Additionally, the company must accurately represent its trading and order handling practices, including how orders are routed to trading venues and the prices at which assets are bought and sold.

    Robinhood must also clearly disclose its crypto custody arrangements and update its Customer Agreement to notify customers of potential delays in settlement due to security concerns. Furthermore, it must report any incidents causing delayed settlement of over one week to the DOJ for transparency and accountability purposes.

    Crypto Regulations Increase

    Being the first action by the California Department of Justice against a crypto company, Attorney General Rob Bonta said:

     “Our investigation and settlement with Robinhood should send a strong message: Whether you’re a brick-and-mortar store or a cryptocurrency company, you must adhere to California’s consumer and investor protection laws. I am dedicated to using all the tools available to my office to protect California consumers in the face of advancing technology in the marketplace.”

    This year has been marked by several crypto regulatory updates in different regions of the world. Crypto exchange Binance recently got approved and registered in India. Earlier this month, Qatar released a new framework for digital assets.

  • Fake Officials Arrested in Ukraine for Stealing $250k

    Fake Officials Arrested in Ukraine for Stealing $250k

    Four individuals tied to a crypto theft and suspected face extortion crimes await a court ruling in Ukraine.

    The National Police of Ukraine (NPU) has announced, through an official press release, that they are investigating a crypto theft. A group of individuals, operating under the guise of being police officers, deceived a business owner and stole 250,000 USDT.

    Fake Officials Arrested

    The Ukrainian cyber police, in collaboration with the State Police and Prosecutor’s Office, have successfully identified and detained four individuals allegedly involved in this crypto theft scheme.

    During several searches, police seized evidence, including computer equipment, fake IDs, and mobile phones. They also found about 7,000 dollars in cash and over 63,000 hryvnias, the country’s local currency, totaling more than $8500. The suspects also had premium-class cars and ammunition in their possession.

    The police tagged them suspects for extortion under Part 4 of Art. 189 of the Criminal Code of Ukraine. The court decides whether to keep the suspects in jail until the trial or release them on bail under house arrest. Whatever conclusion it makes will ensure the alleged criminals attend future court hearings.

    How it All Began

    In May, a 20-year-old online business owner was targeted by four criminals who posed as law enforcement officers. They falsely accused the business owner of cooperating with Russia and threatened him with treason charges and imprisonment. The scammers used intimidation and deception to extort money from the victim.

    The criminals demanded the aforementioned amount to “settle the issue” and drop the fake charges. The victim, fearing the consequences, handed over the funds. The attackers quickly laundered the money through an exchange, attempting to cover their tracks.

    The police were notified, and an investigation identified the four suspects. As mentioned, they are now facing charges for their roles in the fraud scheme. This case shows that crypto crimes are increasing, and it’s therefore essential for users to remain vigilant.

    While the authorities can trace and punish such crimes, digital entrepreneurs and investors should protect themselves not only from online scams but also from in-person fraud.

  • Detained Binance Executive Tigran Gambaryan Begs for Help in New Footage

    Detained Binance Executive Tigran Gambaryan Begs for Help in New Footage

    Binance executive detained in Nigeria since February appears in court with severe health issues, begging for help and justice.

    Tigran Gambaryan, a Binance executive detained in Abuja seven months ago, appeared in a Nigerian court on Monday. A one-minute footage shared on X (formerly Twitter) shows the employee’s painful entry into the courtroom as he struggles to walk with a crutch due to a herniated disc and other health issues.

    Tigran Begs for Help in New Footage

    In a scene shown in the footage, Tigran begs a guard for support. He was heard saying, “I’m not okay.” Then he said, “He was told not to help me. This is an instruction.” As if trying to reveal the truthfulness of his statement, Gambaryan tried to hold onto the man again, but he stepped away.

    When the guard steps away, leaving him unassisted, Gambaryan appeals to onlookers, “Why couldn’t I use a wheelchair? This is a show. I’m an innocent person.” Despite his distress, the guard refuses further help, telling Gambaryan to walk, to which he responds, “I can’t […] walk, my spine is […] I’m a human.”

    The footage paints a picture of Tigran’s desperation for freedom due to the severity of his physical and emotional suffering. The words “I am an innocent person” show the employee sensed injustice from the Nigerian authorities. However, Gambaryan’s pleas were evident not only in the footage but also in his official pleas.

    Tigran Begs Officially

    Tigran’s bail application was rejected in May. The prison authorities, where Gambaryan has been detained since March, had previously withheld his health records. A family spokesperson disclosed that some of his medical records were presented to the court on Monday. The report shows that Gambaryan requires urgent surgical attention.

    The spokesperson claims Gambaryan has faced multiple challenges, including inadequate medical care, restricted access to his legal representatives, and limited contact with U.S. embassy staff. Tigran’s wife, Yuki, has described the situation as “entirely unjust” in a public statement.

    Undeterred by the first bail rejection, the executive’s legal team submitted a new bail application, citing medical reasons. They requested the judge to grant bail to enable Tigran to receive medical treatment for various health issues he has developed while in prison, including malaria, pneumonia, tonsillitis, and complications from the aforementioned herniated disc.