Autor Cointelegraph By Arijit Sarkar

Huobi and Gate.io under fire for allegedly sharing snapshots using loaned funds

Huobi and Gate.io under fire for allegedly sharing snapshots using loaned funds

Uverejnil používateľ | nov 13, 2022 |

To counter the rising mistrust among crypto investors following the FTX collapse, crypto exchanges unanimously decided to share proof of reserve with the public as a way to showcase legitimacy. However, certain anomalies found during on-chain investigations suggest foul play and market manipulation.Just two days after Crypto.com made its cold storage information public, investigators found that 320,000 Ether (ETH) was sent to Gate.io on Oct. 21, 2022. However, Kris Marszalek, the CEO of Crypto.com, dismissed any wrongdoing by stating that the funds were transferred accidentally and were eventually returned back to the original storage.Gate.io released asset snapshot on Oct. 28. Source: Colin WuOn Oct. 28, Gate.io released its proof of reserves snapshot, which, Solidity developer Shegen alleged, was done using Crypto.com’s funds, and questioned:“This was topping up for the proof. Gate and crypto.com are fucked?”Moreover, the crypto community suspects Huobi of attempting a similar manipulation. A wallet address linked to the Huobi exchange was found transferring 10,000 ETH to Binance and OKX deposit wallets soon after releasing its asset snapshot. After Huobi released the asset snapshot of the asset reserve, 10,000 ETH was transferred from 0xca…c3fc (Huobi 34) to Binance and OKX deposit wallets. The Huobi 34, which had 14,858 ETH at the time of the snapshot, currently has only 4,044 ETH left. https://t.co/wrphZxadBM pic.twitter.com/B2lRXMF8su— Wu Blockchain (@WuBlockchain) November 13, 2022Blockchain investigator Colin Wu pointed out the transactions on Etherscan, which proves that Huobi had shown 14,858 ETH in its latest snapshot, which has since fallen down to 2,463.5 ETH at the time of writing.Huobi’s wallet information. Source: EtherscanWhile Huobi is yet to publicly retaliate against the claims put forth by the crypto community, Gate.io founder Lin Han revealed their side of the story. Han argued that the snapshot in question was taken on Oct. 19, two days before Crypto.com’s accidental fund transfer of 320,000 ETH.(1/2) https://t.co/fMCiAnAueR worked with Armanino on the Proof of Reserves using a snapshot on Oct.19 2022 2 days before https://t.co/PHnRJks7YS’s 320,000 ETH deposit to https://t.co/fMCiAnAueR. Check the proof belowhttps://t.co/iCCKCb94kL— Lin Han (@han_gate) November 13, 2022

Han further reiterated that Crypto.com’s funds came in after the snapshot was released and shared relevant proof for the community’s satisfaction.The possibility of multiple crypto exchanges working together to manipulate investor funds has forced the community to keep their guard up until an official statement. Huobi has not yet responded to Cointelegraph’s request for comment.Related: Binance shares wallet addresses and activity after proof-of-reserve pledgeAs more crypto exchanges make their cold storage information public, the immutable nature of blockchain technology will allow investors and investigators to dive into the history of the exchange’s operations. “Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance while revealing wallet addresses.

Čítaj viac
Crypto.com accidentally sends 320k ETH to Gate.io, recovers funds days after

Crypto.com accidentally sends 320k ETH to Gate.io, recovers funds days after

Uverejnil používateľ | nov 13, 2022 |

The fall of FTX highlighted the importance of proof of reserves in averting risks and improving investor confidence, urging leading crypto exchanges to publicly list down their cold and hot wallet addresses. When trying to confirm the availability of funds on Crypto.com, cold store information revealed a suspicious transfer of 320,000 Ether (ETH) to a wallet address linked to Gate.io on Oct. 21, 2022.On chain data confirms the transfer of 320,000 ETH from Crypto.com to Gate.io. Source: EtherscanCommunity member @jconorgrogan raised concerns about the transfer of 320,000 ETH from Crypto.com’s cold wallet to Gate.io, considering that the former claims that 100% of user-owned cryptocurrencies are held offline in cold storage in partnership with hardware wallet provider Ledger.As discussions picked up steam, Kris Marszalek, the CEO of Crypto.com, revealed that the funds — representing 82% of Crypto.com’s ETH holding in the cold storage at the time of writing — were sent accidentally to Gate.io:“It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address.”However, Marszalek confirmed that Gate.io returned the funds to Crypto.com’s cold storage and reassured the investors that new processes and features were implemented to prevent a reoccurrence. And why https://t.co/bVgf3bBSGR would send back to https://t.co/2vZHyCacXG 285K ETH 5-7 days later? pic.twitter.com/GhH6QGXntd— Conor (@jconorgrogan) November 12, 2022While on-chain data confirms that Gate.io returned 285,000 ETH back to Crypto.com, Marszalek stated that all funds were returned. Further investigation showed that the missing 35,000 ETH was sent to a different address, which is yet to be confirmed by the crypto exchange.It’s not the first time Crypto.com made headlines for an accidental transfer. Back in August 2022, it was found that Crypto.com accidentally sent AUD $10.5 million (worth over $7 million) to Melbourne-based investors, which was supposed to be an AUD $100 ($67) refund. The incident occurred back in May 2021 but was not discovered until an annual audit in December 2021.Related: Crypto.com commits to proof-of-reserves after halting FTX-backed Solana deposits and withdrawalsMarszalek promised to publish Crypto.com audited proof of reserves on November 10 while highlighting the importance of transparency and user’s safety.We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves and https://t.co/pFc4Pz9nFR will be publishing our audited proof of reserves.— Kris | Crypto.com (@kris) November 10, 2022

With most crypto businesses willing to share their proof of reserves, investors now have the opportunity to confirm the existence of their funds, which ultimately prevents business owners from misusing the cold storage funds.

Čítaj viac
Binance CEO CZ on FTX crash: “We’ve been set back a few years”

Binance CEO CZ on FTX crash: “We’ve been set back a few years”

Uverejnil používateľ | nov 12, 2022 |

Crypto exchange FTX joined many other fallen projects — including Terra (LUNA), 3AC, Celsius and Voyager — in filing for bankruptcy in 2022. Owing to the devastation caused by multi-billion dollar losses suffered by businesses and investors, the man running the biggest crypto exchange, Binance CEO Changpeng “CZ” Zhao, envisions an era of greater regulatory scrutiny in the near future.With one of the biggest crypto businesses falling overnight, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence. Speaking at Indonesia Fintech Summit 2022, he said:“I think basically we’ve been set back a few years now. Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”Regulations in crypto historically circled around Know Your Customer (KYC) and Anti-Money Laundering (AML). However, CZ reiterated his long-standing belief that regulations must focus on exchange operations, such as business models and proof of reserves. As a result, he believed that tighter regulatory scrutiny around crypto business operations is around the corner.CZ sharing his thoughts on FTX and the future of crypto during Indonesia Fintech Summit 2022. Source: YouTubeWhile FTX’s collapse is bound to have a short-term impact on retail investors, in the longer term, this is a wake-up call for discussions about how to handle risks across crypto ecosystems. Speaking specifically about FTX, he said:“The last three days is just a revelation of problems. The problems were there way longer. This problem wasn’t created in the last three days.”CZ pointed out that the biggest red flag about FTX was Alameda Research’s financials, which were full of FTX Tokens (FTT) that made him finalize the decision to sell off Binance’s FTT holdings worth over $2 billion at the time. The following day, FTX CEO Sam Bankman-Fried reached out to CZ with a deal that “did not make sense from a number of fronts”. At the same time, CZ hoped to get an over-the-counter (OTC) deal for protecting users:“Original intention was let’s save the users, but then the news of misappropriating user funds, especially U.S Regulatory Agencies investigations (made us realize) we can’t touch that anymore.”CZ believes that increasing transparency and educating regulatory agencies about crypto audits and cold wallet information will make the industry much healthier. Finding the right balance of rules is not ask, he said.The entrepreneur highlighted the need for easy tools for saving private keys and other security functionalities but argued that the crypto ecosystem will grow in incremental steps and not giant leaps.Related: Binance Proof-of-Reserve pledge gains support following FTX crisisTaking a proactive approach in regaining investor confidence, Binance published a new page titled “Proof of Assets,” which displays details about the exchange’s on-chain activity for its hot and cold wallet addresses.“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance in an official statement.

Čítaj viac
Tether blacklists $31.4M USDT following FTX's alleged hack, Musk reacts

Tether blacklists $31.4M USDT following FTX's alleged hack, Musk reacts

Uverejnil používateľ | nov 12, 2022 |

On the night of Nov. 11, several wallet addresses linked to FTX were found transferring millions of dollars worth of cryptocurrencies without an official notice — sparking speculations ranging from the commencement of FTX’s bankruptcy proceedings to the involvement of hackers. Within hours, FTX confirmed on Telegram that the fund transfers were part of an ongoing hack.FTX Telegram admin confirms being hacked. Source: TelegramFollowing FTX’s confirmation on Telegram about the hack, as shown above, Tether proactively blacklisted $31.4 million worth of USDT tokens linked to the transactions. As pointed out by blockchain investigator ZachXBT, the blacklisted USDT tokens were made up of $3.9 million USDT on Avalanche (AVAX) and $27.5 million USDT on Solana (SOL). FTX meltdown/ransack being tracked in real-time on Twitter— Elon Musk (@elonmusk) November 12, 2022Billionaire entrepreneur Elon Musk, who recently purchased Twitter in hopes of unleashing the platform’s full potential, acknowledged Twitter’s contribution in tracking down the FTX developments in real time.Elon Musk takes a dig at FTX CEO Sam Bankman-Fried. Source: TwitterBy blacklisting the alleged stolen USDT token, Tether disarmed hackers from siphoning the assets to another account or exchanging them for other cryptocurrencies. As part of the remediation, Tether can burn the blacklisted USDT and reissue equal amounts of the asset to the original owner.However, the hacker also stole numerous other crypto assets, including Ethereum (ETH) Chainlink (LINK) and USDP, which is yet to see intervention from respective ecosystems.Related: FTX-Binance standoff highlights the need for clear rules — Sen. LummisOver the past few days, major crypto exchanges, including Binance, OKX, Kucoin and Crypto.com, committed to sharing their proof of reserve to regain investor confidence. Taking the lead in this drive, Bitfinex CTO Paolo Ardoino shared 135 cold and hot wallet addresses revealing Bitfinex’s proof of reserves.1/Proof of reserves for @bitfinexHere is the list of the main Bitfinex walletshttps://t.co/TaS7Vy9qfPFinex holds:- 204338.17967717 BTC (among top bitcoin holders)- 2018.5 L-BTC (Liquid)- ~1000 BTC on LN ⚡️- 1225600 ETH (among top ethereum holders)…— Paolo Ardoino (@paoloardoino) November 11, 2022

While the move was well-received by investors, few members of the community pointed out the lack of Bitfinex’s liability figures, which makes the data incomplete for review.

Čítaj viac
Bitfinex CTO releases proof of reserves amid FTX bankruptcy fiasco

Bitfinex CTO releases proof of reserves amid FTX bankruptcy fiasco

Uverejnil používateľ | nov 12, 2022 |

The fall of major crypto ecosystems — such as FTX and Terra (LUNA) — this year highlighted the importance of transparency around the true reserves held by crypto exchanges and businesses. Amid the ongoing fear, uncertainty and doubt (FUD) across the crypto space, crypto exchange Bitfinex revealed its proof of reserves to the general public.Over the past few days, major crypto exchanges, including Binance, OKX, Kucoin and Crypto.com, committed to sharing their proof of reserve to regain investor confidence. Walking the talk, Bitfinex CTO Paolo Ardoino shared the list of the main Bitfinex wallets, last updated on November 11.GitHub repository containing Bitfinex proof of reserves. Source: GitHubAs shown above, Ardoino shared Bitfinex’s proof of reserves on GitHub, wherein he listed a total of 135 cold and hot wallet addresses. Sparing users the trouble of going through the addresses, he listed down some of the company’s significant holdings, which included 204338.17967717 BTC and 1225600 ETH among top holders.1/Proof of reserves for @bitfinexHere is the list of the main Bitfinex walletshttps://t.co/TaS7Vy9qfPFinex holds:- 204338.17967717 BTC (among top bitcoin holders)- 2018.5 L-BTC (Liquid)- ~1000 BTC on LN ⚡️- 1225600 ETH (among top ethereum holders)…— Paolo Ardoino (@paoloardoino) November 11, 2022Bitfinex developed an open-source library called Antani back in June 2018, which was aimed at providing transparency around proof of solvency, custody and off-chain delegated proof of vote. While overlooked in the past, Ardoino confirmed Bitfinex’s plans to revive the system that would allow users to verify their balances without compromising privacy.Goals set by Bitfinex’s open-source library,  Antani. Source: Antani white paperAntani’s whitepaper suggest that users will be able to verify their balances cryptographically, allowing Bitfinex users to confirm the existence of their funds and eradicate depegging risks.While the revelation saw a warm welcome from the community, members pointed out that the data is incomplete as the information excludes Bitfinex’s liability figures.Related: OKX, Kucoin say proof of reserves will be ready in a monthAs a result of the massive outflows from crypto exchanges amid the FTX bloodbath, hardware-based cryptocurrency wallet provider Ledger suffered from a temporary server outage. “​​​​After the FTX earthquake, there’s a massive outflow from exchanges to Ledger security and self-sovereignty solutions,” reasoned Ledger CTO Charles Guillemet while revealing that the systems were back running soon after.

Čítaj viac

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy