Author: Sincerity Jahswill

Qatar launches QFC Digital Assets Framework to support fintech innovation and economic growth while ensuring investor protection and market integrity.

The Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA) have announced the launch of a set of rules known as the QFC Digital Assets Framework. This move aims to support the Middle East country’s digital transformation goals and establish the nation as a hub for fintech innovation.

QFCA Reveals Framework Scope

Notably, the legality and regulation of crypto and other digital assets vary by country and jurisdiction. In Qatar, the regulatory body QFCA clarified the scope of the new framework.

The QFC Digital Assets Framework provides clear guidance on various crypto-related activities. These include the issuance of digital assets, their trading and exchange, storage solutions, and the execution of smart contracts.

Additionally, the framework addresses critical regulatory concerns, such as anti-money laundering (AML) and counter-financing of terrorism (CFT). The regulatory body claimed that the rules align with the QFC’s dedication to responsible innovation, protecting investors, and maintaining market integrity with strict risk controls.

The QFC Digital Assets Framework was developed through a collaborative effort between QFC and various industry stakeholders, including digital asset exchanges, custodians, and other market participants. Its lab, launched in 2023, has supported over 20 start-ups and fintech firms.

New Framework Fosters Institutional Crypto Adoption

Qatar has been investigating the potential of digital assets in recent years, acknowledging their capacity to drive transformative change and unlock opportunities for economic expansion. The QFC’s newly introduced framework complements the nation’s ongoing initiatives to create a supportive ecosystem for new tech innovations.

Institutions can leverage the framework to explore new investment avenues, diversify their portfolios, and adapt to changing market conditions. The QFCRA’s recent move presents opportunities for institutions to partner with fintech firms and start-ups, driving collaboration and innovation. However, they must also comply with the new regulations in place.

By supporting digital asset development, institutions contribute to Qatar’s economic and digital goals, positioning themselves at the forefront of the country’s financial and technological growth.

PeckShield reports $313M worth of crypto stolen in August 2024 via cyberattacks, making it the 3rd worst month for crypto hacks in 2024.

Crypto investors seem threatened as hackers increase crypto exploits in the ecosystem. A recent report by blockchаin sеcurity firm PeckShield reveals that over $313 million was stolen in August alone through over ten cyberattacks. This increase in hacking activity could raise fear, uncertainty, and doubt about the security of digital assets.

#PeckShieldAlert August 2024 witnessed 10+ hacks in the crypto space, resulting in ~$313.86 million in losses. The 2 largest hacks, both involving unauthorized transfers (#Phishing), accounted for 93.5% of the total stolen funds, amounting to $293.4 million.#Top 5 Hacks in… pic.twitter.com/lIAieHdUqt

— PeckShieldAlert (@PeckShieldAlert) September 1, 2024

Over $300M Hacks in August

PeckShield’s report reveals that phishing attacks were most prevalent in August. Two resulted in the loss of $293.4 million, representing 93.5% of all stolen funds. One drains $238 million worth of Bitcoin (BTC), and another steals $55.4 million of DAI. This method tricks victims into revealing their login credentials or private keys, resulting in losses.

In addition to phishing attacks, August saw other significant exploits. The Ethereum sidechain Ronin suffered a security breach worth $17.1 million. While it later recovered $12 million, $5.1 million was lost to an unauthorized transaction. NEXERA, a decentralized finance protocol, also lost $1.83 million due to a smart contract exploit.

These hacks remind investors to prioritize security and protect their digital assets. Cybercriminals are becoming more sophisticated in their tactics, so crypto users should be informed and up-to-date on the latest security measures. Exchanges and decentralized platforms should also focus on security and implement measures to prevent attacks.

August Ranks 3rd in 2024 Crypto Hacks

As bad as last month was for the crypto community, May 2024 saw the worst month for crypto hacks this year, with the $308 million breach at DMM Bitcoin being the largest incident. Coinbase also suffered an account drain of $18 million, contributing to $574.6 million in stolen funds, making May the highest-hacked month of 2024.

Trailing behind May, February remains the second-worst month for crypto hacks in 2024, with the $290 million PlayDapp breach being the most notable incident. Other security breaches and phishing attacks caused even more losses.

According to the PeckShield report, these statistics put August in third place regarding crypto hacks recorded in 2024.

Bridge raises $58 million from reputable investors to create a payment network for stablecoins.

Bridge, a startup founded by former Square and Coinbase employees Sean Yu and Zack Abrams, has secured $58 million in funding from prestigious investors. The executives aim to make stablecoin more widely used by creating a global payment network for it. The technology is geared towards making global money transfers faster and cheaper.

Bridge’s Investors Revealed

According to a Fortune report, Bridge has secured its funding from reputable venture capital firms. This includes Sequoia Capital which has a long history of supporting innovative startups and has a strong presence in the fintech and cryptocurrency space. The firm’s previous investments include Apple, Google, Facebook, and Airbnb.

Ribbit Capital, which specializes in fintech investments, also participated in the funding round. The capital firm has invested in prominent companies like Robinhood, Coinbase, and Credit Karma. Ribbit and Sequoia raised $40 million, over 68% of the total funds realized. Index and the blockchain-focused Haun Ventures were also investors in the funding round.

While Bridge boasts of reputable investors, it also has high-profile customers too. The startup has already established partnerships with clients like SpaceX and Coinbase.

Bridge’s joining the market as a stablecoin payment system shows a growing interest in stablecoins as a viable investment option. However, it needs to build relationships with financial institutions and get licenses to operate in different countries. They also need to overcome trust issues with non-crypto companies.

Stablecoin Market Keeps Growing

Despite a major setback in 2022, when TerraUSD (UST) lost its peg to the U.S. dollar and collapsed, the stablecoin market remains an attractive investment tool. The incident led to a loss of investor confidence and intense regulatory scrutiny.

The stablecoin market currently boasts a capitalization of $177.24 billion, with Tether (USDT) and USD Coin (USDC) leading the pack. According to CoinMarketCap data, USDT and USDC have market capitalizations of $118.22 billion and $34.6 billion, respectively.

Regulated stablecoins are gaining traction. PayPal introduced PayPal USD (PYUSD), a dollar-backed stablecoin issued by Paxos Trust Company. PYUSD has surpassed $1 billion in market capitalization, competing with other regulated stablecoins like USDC. 

The U.S. federal judge nullifies the $258 billion lawsuit against Elon Musk, citing a lack of sufficient evidence by the plaintiff.

United States federal judge Alvin Hellerstein has dismissed a massive $258 billion lawsuit against Elon Musk. The lawsuit accused him of artificially inflating the price of Dogecoin (DOGE) through his public praise. The judge defendant’s charge that the defendant’s tweets and statements manipulated the market on Thursday, handing him a major win.

The Dogecoin Manipulation Case

Initially filed in June 2022, the lawsuit underwent four amendments before being updated last year to include insider trading claims. The charge alleged that Elon and Tesla profited from DOGE by timing trades through controlled wallets, citing the instance in April 2023 where Musk sold Dogecoin after swappingTwitter’ss logo with Dogecoin, causing a 30% spike in value.

The plaintiff, representing investors who allegedly suffered financial loss, claimed that Elon’s social media comments led to an $86 billion loss. Seeking triple damages, they requested $258 billion from the court.

The lawsuit also mentioned Musk’s 2021 appearance on Saturday Night Live, where he played a financial expert in a skit and referred to Dogecoin as “a hustle.” A sharp decline followed this comment in Dogecoin’s value, which plummeted over 25% from its all-time high of $0.73. It noted that Dogecoin has not recovered to those price levels since then.

Elon Musk Wins the Case

In the recent ruling, Judge Alvin Hellerstein stated that the billionaire’s tweets about Dogecoin were “aspirational and puffery, not factual and susceptible to being falsified.” This means the judge considered Musk’s statements promotional and not based on facts, which cannot be used as a basis for a lawsuit. 

Additionally, the judge ruled that no reasonable investor could rely on such tweets for investment guidance. The court found that the plaintiff failed to provide sufficient evidence to support their alleged market manipulation and insider trading against Elon. As a result, the court dismissed the lawsuit with prejudice, an absolute win for Musk.

Despite the court’s dismissal of the lawsuit, Dogecoin’s price remained relatively stable. At press time, data from CoinMarketCap revealed the token experienced a minor 0.5% increase over the past 24 hours.

A trader suffered a loss of over $1M in one hour after hackers used the footballer’s X account to shill a memecoin.

Thursday saw another shocking crypto scam unfold. Hackers compromised the French football star Kylian Mbappé’s X (formerly Twitter) account to promote a meme coin called $MBAPPE. With a huge following of 14.4 million X users, many of the footballer’s fans fell vulnerable to deception as some traded the token.

Over $1M Lost Within One Hour

According to data from Lookonchain, a blockchain transaction tracker, one unsuspecting investor fell victim to the scam. The trader swapped his 7,156 SOL worth $1.03 million for the fraudulent $MBAPPE token. However, their joy was short-lived as the coin’s value plummeted to just $9,200 in a single hour, wiping out nearly the entire investment. 

It was discovered that the fake $MBAPPE token was created using Pump.fun, a platform famous for its easy and affordable token creation. The hackers exploited Mbappé’s massive following, posting fake promotions that briefly pumped the coin to millions in market cap before crashing and causing significant losses for investors.

Other Investors Profit from $MBAPPE

While the aforementioned investor suffered a loss, another made a fortune by investing 2 SOL ($286) in the coin and selling it at a profit, earning 1,398 SOL ($200,000). As reported by WuBlockchain on X, this investor demonstrated impeccable timing, buying the token at its lows and cashing out with an impressive 700x profit.

Another meme trader made a huge 433,000% profit by investing a mere $29 (0.2 Solana) in the same celebrity meme token, selling it just three minutes later for a whopping $125,160 (866.14 SOL).

Lookonchain analytics highlighted that this trader has a knack for meme-themed cryptos, investing small amounts in 251 tokens and boasting a success rate of 35.46%. Their winning strategy involves quick buys and sells, capitalizing on brief price surges.

The $MBAPPE token finally dropped to zero as hackers rug unsuspecting investors. The scam shows that high-profile accounts are not immune to manipulation. Recently, DOJA Cat’s X  and  McDonald’s Instagram were hacked similarly.

Haru Invest CEO’s health condition remained unknown while the attacker was arrested.

In a shocking turn of events, Hugo Hyungsoo Lee, the CEO of South Korean crypto firm Haru Invest, was stabbed multiple times in the neck during a courtroom hearing on Wednesday. The attack occurred at the Seoul Southern District Court, where Lee was on trial for fraud charges related to the company’s alleged embezzlement of $826 million from 16,000 users.

CEO Stabbed in Courtroom

As Lee sat at the defendant’s seat, the assailant, identified as a victim of Haru Invest, suddenly sprang up from the guest seat and attacked Lee with a small knife. The unexpected attack sent shockwaves through the courtroom, with the guards quickly acting to subdue the man.

Despite their swift response, Lee bled profusely on the trial room floor, which was soon marked with bloodstains. Emergency services arrived, and Lee was transported to a nearby hospital. The severity of his injuries and his current condition remain unknown, leaving many to fear for his safety and well-being.

Meanwhile, the perpetrator was arrested at the scene and is now under police custody. The motivations behind his attack are not yet clear. As the investigation unfolds, more details about his identity and motives will likely emerge.

Haru Invest Alleged Fraud Details

Haru Invest had marketed itself as a risk-free platform offering high yields. Last year, however, the firm revealed issues with its financial partners, suspended withdrawals, and laid off around 100 employees to stabilize the company.

Seoul’s Southern District Prosecutors’ Office arrested three executives of the Singapore-based crypto firm as part of an ongoing investigation into alleged embezzlement. The South Korean authorities claimed that Haru Invest intentionally masterminded a scam to steal customers’ digital assets and failed to provide the promised returns on investment.

The criminal act in the last place one would expect, the courtroom, gives evidence that crypto-related crimes are now shifting from solely cyber-based to more physical and violent acts. This highlights the need for increased security measures and cooperation by law enforcement agencies.

Russia will test cryptocurrency payments for international transactions, aiming to overcome payment difficulties due to sanctions.

The Russian Federation will begin testing cryptocurrency exchanges and digital token payments for international transactions on September 1. According to a Bloomberg report, this move aims to help Russian companies overcome payment difficulties caused by international sanctions.

Proposed Crypto Trial

Under central bank supervision, Russia’s crypto trials, starting September 1, will use the National Payment Card System (NPCS), which is said to be the ideal choice due to its existing infrastructure and central bank regulation. The test will involve the conversion of the Russian Ruble to crypto.

If the trials are successful, Russia may allow the Moscow Exchange and St. Petersburg Currency Exchange to set up crypto platforms next year. This would enable more widespread adoption of cryptocurrencies in Russia’s financial system and provide a regulatory framework for cryptocurrency trading and exchange operations in Russia.

Why Russia Plans to Adopt Crypto

In June, the United States expanded its sanctions parameters, affecting Russian businesses and individuals. These sanctions have severely affected Russia’s ability to conduct international trade, making it challenging for companies to pay foreign suppliers for goods and services and receive payments for exports.

The sanctions have strained Russia’s economy, and to curtail these ugly effects, the government is exploring payment methods to maintain international trade. The parliament passed bills in July to test crypto for cross-border payments under central bank supervision. President Vladimir Putin signed them on August 8, paving the way for the upcoming trials.

Traditional Payment vs. Crypto

Traditional international payment methods, such as wire transfers, are often plagued by slow processing times, exorbitant fees, and regulatory hurdles, making them less efficient in conducting cross-border transactions. 

Cryptocurrencies are a superior alternative, enabling transactions to be executed almost instantaneously, with lower fees and no intermediaries. When used as a cross-border payment, they reduce the payment process, complexity, and costs associated with international trade.

Russia’s move to test crypto for international trade aims to reduce its dependence on traditional payment systems and find new ways to conduct global transactions. By leveraging cryptocurrency, the federation can limit risks associated with conventional payment methods, such as sanctions and asset freezes.

The approval comes weeks after the Indian DGGI asked Binance to pay a settlement of $86 million for tax evasion. 

Leading crypto exchange Binance has officially registered as a reporting entity with India’s Financial Intelligence Unit (FIU), marking the firm’s 19th global regulatory milestone.

With the approval, Binance can now legally offer its suite of crypto products and services to Indian customers. This also means that users in the country can now access the Binance website and mobile application without the need of a virtual private network (VPN).

Binance Becomes Legal Entity in India

Announcing the approval, the company noted that the registration with the FIU testified to its commitment to upholding the highest standards of anti-money laundering (AML) and combating the financing of terrorism (CFT) in India and across the globe. 

Richard Teng, the CEO of Binance, highlighted the importance of this achievement, stating, “Recognizing the immense potential of the Indian VDA market, aligning with Indian regulations enables us to better serve the unique needs of our users in India. We are honored to bring our advanced platform to this dynamic market, contributing to India’s ongoing VDA growth.”

The statement underscored Binance’s commitment to adapting to various regulatory landscapes, showcasing its flexibility and dedication to compliance. The exchange reaffirmed its commitment to core values like security, transparency, and efficiency,

Binance’s Rocky Path to Regulatory Compliance

The latest development comes eight months after the India’s Financial Intelligence Unit (FIU) blocked nine global cryptocurrency exchanges, including Binance and KuCoin, for violating anti-money laundering (AML) laws. As a result, their mobile apps were removed from Google Play Store and Apple App Store in the Indian region.

In April, Binance made a $2.25 million settlement with Indian authorities due to its failure to comply with country’s regulations in the past. According to the FIU, the exchange operated unlawfully in India without proper registration and neglected to follow local AML protocols, resulting in the ban action.

Earlier this month, the Indian Directorate General of GST Intelligence (DGGI) asked Binance to make a tax settlement of $86 million for serving local users without proper registration while avoiding tax payment between July 2017 and March 2024. 

While Binance beamed with enthusiasm over the regulatory approval in India, it is unclear whether or not the exchange made the $86 million settlement to the DGGI.