2023-11-22 13:13

HTX withdrawals and deposits have been temporarily suspended, and all losses will be covered by the exchange, Sun said. Crypto exchange HTX and blockchain protocol Heco Chain were hacked for a cumulative $97 million in various tokens earlier Wednesday, Justin Sun, one of the investors at the exchange, confirmed in a post. Sun said HTX will fully compensate for any losses originating from the exchange. Deposits and withdrawals are temporarily suspended while the remaining funds are secure. “We are investigating the specific reasons for the hacker attack. Once we complete the investigation and identify the cause, we will resume services,” Sun said. Blockchain security firm Cyver flagged suspicious transfers to the tune of $85 million earlier Wednesday. It said in a message to CoinDesk that the attack was due to a suspected private key leak, which allowed their holders to access the Heco bridge, which lets users transfer tokens between Heco Chain and Ethereum. Heco Chain was set up by HTX, which continued to be one of its maintainers. A HTX spokesperson told CoinDesk that HTX and Heco Chain operate independently. The incident follows a smaller $8 million exploit of HTX in October, where hackers were able to steal 500 ether from the exchange. All losses were fully covered in the days following the incident. https://www.coindesk.com/tech/2023/11/22/justin-sun-confirms-htx-heco-chain-exploited-after-100m-in-suspicious-transfers/

2023-11-22 09:11

The deal also removes the final hurdle before approval of a spot bitcoin ETF, the report said. While Binance experienced minor outflows of less than $1 billion following the news of the settlement with the U.S. government, there was no major panic from customers, and it remains the dominant crypto exchange internationally, with $67 billion of customer funds under custody, broker Bernstein said in a research report Wednesday. “Binance’s reputation with retail non-U.S. customers has remained strong through the crisis,” analysts led by Gautam Chhugani wrote. Binance will remain a “material entity in non-U.S. markets,” but Bernstein says it expects increased competition from the likes of listed rival Coinbase (COIN) and new exchanges in regulated markets such as Hong Kong and Singapore. Bernstein says the crypto exchange has adequate funds to settle the $4.3 billion fine while maintaining healthy operations. “Binance’s complete exit from the U.S would mean continued dominance of onshore and incumbent exchanges in the U.S.,” the authors wrote, noting that asset managers who have filed exchange-traded fund (ETF) applications are already working with exchanges such as Coinbase for prime broking and custody. “In our view, this is the final straw before the establishment feels comfortable to approve a regulated bitcoin ETF,” they wrote. Crypto services provider Matrixport says that while the plea deal does not include the Securities and Exchange Commission (SEC), it is a very favorable outcome for Binance founder Changpeng "CZ" Zhao and the company itself, and the firm will likely remain a top-three exchange in the near term. “With this plea deal, the expectations for a spot bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow,” wrote Markus Thielen, head of research at Matrixport, referring to traditional finance. https://www.coindesk.com/business/2023/11/22/binance-will-retain-its-international-dominance-after-us-settlement-bernstein/

2023-11-22 08:03

Data shows the exchange sits on over $67 billion worth of tokens, easing concerns of a possible bank run. Binance was hit with criminal charges in the U.S. on Wednesday, and founder CEO Changpeng 'CZ' Zhao agreed to step down as part of a $4.3 billion settlement with the government. The exchange successfully processed nearly $1 billion in withdrawals in the last 24 hours, quelling fears of an FTX-style bank run. Crypto exchange Binance saw over $950 million in net outflows over the past 24 hours as it was hit with criminal charges in the U.S., and founder Changpeng ‘CZ’ Zhao agreed to step down as chief executive officer as part of a record settlement. “There are constant hourly net outflows of bitcoin and stablecoins after the CZ's resignation announcement,” Hochan Chung, head of marketing at CryptoQuant, told CoinDesk. “However, compared to the total reserves of Binance, the current volume is not yet significant at all.” Binance is set to continue operating as usual and make a "complete exit" from the U.S market. The withdrawals are fairly above average, but not usually large on a weekly basis, an analysis of net hourly flows from the on-chain data tool CryptoQuant shows. Data from a Dune Analytics dashboard shows over $2.37 billion in various tokens left the exchange, but some $1.78 billion in tokens were deposited. Address “0x43feD72B921aF413Aad831CEbd221697B18DA54F,” apparently connected to the institutional trading desk FalconX, withdrew the most at $83 million. Another address “0xeae7380dd4cef6fbd1144f49e4d1e6964258a4f4,” with apparent links to market maker Wintermute Trading, led deposits at $190 million. Binance's BNB tokens were the most deposited and withdrawn tokens, the data shows. As such, the processing of withdrawals and deposits helps buffer any concerns about the exchange’s solvency. The situation is far unlike last year’s run on embattled exchange FTX, which stopped customer withdrawals following a CoinDesk story that revealed Sam Bankman-Fried's company commingled customer assets with those of its trading arm, Alameda Research. Meanwhile, DefiLlama data shows the exchange sits on over $67 billion worth of tokens and stablecoins. https://www.coindesk.com/markets/2023/11/22/binance-processes-nearly-1b-in-net-outflows-as-changpeng-cz-zhao-resigns/

2023-11-22 07:34

Genesis and Gemini have been embroiled in a public and legal feud since the collapse of FTX. Crypto lender Genesis Global Capital has sued cryptocurrency exchange Gemini Trust, its former business partner, to recover more than $689 million, according to a court filing late on Tuesday. It alleges that Gemini made preferential transfers of an "aggregate gross amount of no less than approximately $689,302,000" from Genesis at the expense of other creditors and asked the court to "correct this unfairness." Genesis and Gemini have been embroiled in a public and legal feud ever since the collapse of FTX. Genesis filed for bankruptcy in January. Its parent company, Digital Currency Group (DCG), was sued by Gemini in July over allegations that DCG then described as "defamatory" and a "publicity stunt." In September, Genesis sued its parent company, DCG, seeking the repayment of multiple loans worth over $600 million. And then, in October, Gemini sued Genesis over 60 million shares of the Grayscale Bitcoin Trust (GBTC), valued at around $1.6 billion. Gemini's co-founders are the Winklevoss twins, Tyler and Cameron. The saga has seen legal action from U.S. authorities, too. In January, days before Genesis filed for bankruptcy, the U.S. Securities and Exchange Commission (SEC) alleged Genesis and Gemini sold unregistered securities. Last month, New York Attorney General Letitia James filed a lawsuit against DCG, Genesis and Gemini for allegedly defrauding more than 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion. The filing alleges that as market turmoil caused by the collapse of Terraform Labs and digital asset hedge fund Three Arrows Capital unfolded, Gemini made "unprecedented withdrawals" before the bankruptcy filing, contributing to a "run on the bank." During a 90-day period known as the preference period, Gemini demanded repayment of prior loans made to Genesis. These transfers were "avoidable" and upon "information and belief" that Genesis was "insolvent." Gemini didn't immediately respond to a CoinDesk request for comment. Read More: Genesis, Three Arrows Capital Reach Agreement on $1B of Claims https://www.coindesk.com/policy/2023/11/22/genesis-sues-gemini-to-recover-preferential-transfers-worth-689m/

2023-11-22 07:29

We have seen interest in loading up more topside with strong demand for the March 2024 expiry calls, one OTC desk said. Binance chief Changpeng "CZ" Zhao on Tuesday stepped down and pleaded guilty to violating U.S. anti-money laundering laws as part of a $4.3 billion settlement, in what may come across as the most significant blow to the crypto market since the collapse of Sam Bankman-Fried's exchange FTX last year. But that's certainly different from how traders look at the events. According to over-the-counter institutional cryptocurrency trading network Paradigm, the options market has increased activity in topside bitcoin call options in the aftermath of the Binance news, a sign of persistent bullish sentiment. "In the options space, after the initial two-way flow, we have seen interest in loading up more topside with strong demand for the March 2024 expiry calls," Patrick Chu, head of institutional sales coverage at Paradigm, told CoinDesk. Data shared by market analyst Chang shows that early Wednesday, market participants traded 550 contracts of BTC $45,000 strike call option expiring in March 2024 on Deribit. Buyers, expecting a continued price rally in bitcoin in the coming months, paid a cumulative premium of $1.5 million for the bullish bets. On Deribit, one options contract represents one BTC. A call option is a contract between a buyer and a seller to purchase the underlying asset at a preset price on or before a specific date. A call buyer is implicitly bullish on the market, while a put buyer is bearish. Overall, both short-term and long-term calls continue to trade at a premium relative to puts, as evidenced by the positive call-put skews. It's a sign the market doesn't expect a significant fallout from Binance's guilty plea. The sentiment is that U.S. regulators have cleaned up the industry, setting the stage for approving the first U.S.-based exchange-traded fund that invests in cryptocurrency. The so-called spot-based ETF is expected to bring billions in investor money to the crypto market. Bitcoin is currently trading above $36,500, according to CoinDesk Indices data, down 2% on-day. https://www.coindesk.com/markets/2023/11/22/crypto-traders-load-up-on-bitcoin-topside-option-plays-after-binances-gulity-plea/

2023-11-22 06:17

"I’m looking forward to returning to OpenAI, and building on our strong partnership with msft (Microsoft)," Altman said in a post early Wednesday. Sam Altman, the founder of artificial intelligence startup OpenAI, was ousted from the company last week, prompting backlash from employees and shareholders. An in-principle agreement could bring him back as CEO, the company said on Wednesday. OpenAI co-founder Sam Altman is set to return as the chief executive officer of the artificial intelligence startup nearly a week after he was ousted from the company's board, prompting backlash from employees and key stakeholders. "We have reached an agreement in principle for Sam Altman to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D'Angelo," OpenAI said in an X post on Wednesday morning. "I’m looking forward to returning to openai, and building on our strong partnership with msft (Microsoft)," Altman said in a post early Wednesday. Altman was forced out of his role last weekend because he "was not consistently candid in his communications" with the board. A leaked memo was not specific about why Altman was forced to depart from the company, which said the firing "was not made in response to malfeasance or anything related to our financial, business, safety, or security/privacy practices." But OpenAI’s loss was someone else’s gain. Earlier this week, reports emerged that Altman, Greg Brockman, the company's co-founder and president, and other former staff members would be joining software giant Microsoft, one of the key investors in the AI startup. OpenAI's major investors, led by Microsoft CEO Satya Nadella, reportedly pushed to reinstate Altman as CEO and replace the current board following the unexpected firing, with intense negotiations involved in the process. Altman’s departure even sparked criticism from hundreds of OpenAI employees – even prompting a note to the board threatening to leave the company to join Altman unless the board formally resigned. Blockchain betters cash out Prediction market traders on Polymarket have been enthusiastically betting on this Macbethian corporate saga, with some winning over $10,000. According to on-chain data, Xinako, who describes themselves as a China-based crypto and NFT investor on X, currently has a position worth $44,777 to the "Yes" side of the "Sam Back as CEO of OpenAI" contract. Their position is up 50%, as they bought in at an average of 65 cents, adding $14,956, to their book value. Another user called Berkeleyverse has seen their position increase by 114%, buying in at 46 cents, bringing their book value to $10,703. On the flip side, a user going by the name of Ilya Sutskever (a reference to OpenAI's chief scientist who reportedly had a poor relationship with Altman) holds the largest no position currently worth $616. This user has lost 94% of the book value of the bet, or $10,000. In total, over $275,000 was bet on the contract, with another $40,000 bet on if Shear would be CEO of OpenAI by the end of the week. Even though both Altman, OpenAI, and Microsoft CEO Satya Nadella have announced Altman's return to the company, the Polymarket contract currently isn't resolved — meaning bets aren't finalized — because there has yet to be a resolution posted to UMA, the oracle that resolves prediction market contracts like this. During the hunt for the Titan submarine, which ended up imploding and killing its passengers, the UMA oracle was in the spotlight because of a debate on if the submarine had been found, focused on the semantics of the word. The issue of whether the submarine was found was sent to UMA, and put to a vote with hopes the decentralized dispute resolver would find the truth in the word's meaning. UMA's ruling in favor of the "yes" bettors sparked further debate, highlighting concerns about its voting process being controlled by a few token holders and questioning the fairness and decentralization of such systems in crypto, DLNews reported. https://www.coindesk.com/tech/2023/11/22/sam-altman-to-return-as-openai-ceo-following-in-principle-agreement/