HTX experiences $258 million outflow post-hack

Crypto Exchange Bithumb Holds Free Trading Event To Boost User Base and LiquidityBithumb, South Korea’s second-largest cryptocurrency exchange, has announced a major “no trading fee” event in an attempt to narrow the gap with its competitor Upbit, the leading exchange in the market.The event started on August 1, with select listed virtual assets available for trading without having to pay a fee on the exchange’s Korean won market.Photo by Pierre Borthiry — Peiobty on UnsplashAssets with no trading feesAptos (APT), Stacks (STX), Flow (FLOW), Sui (SUI), Bitcoin Gold (BTG), FirmaChain (FCT2), Blur (BLUR), Waves (WAVES), Metal (MTL), and Loom Network (LOOM) will be the first assets to have no fees during the event.The cryptocurrencies eligible for free trading can easily be distinguished by the blue “Free” badge displayed next to their names. Users can also check the full list through the “Fee-Free” category displayed at the top of the exchange chart.The event is scheduled to continue until further notice and an additional ten assets eligible for free trading will be added every week as well.Boosting liquidityAccording to a Bithumb official, the virtual assets to be unveiled later on will be “subject to active domestic and international investment,” and the exchange will strategically select those that have the highest potential to expand liquidity.Through this event, Bithumb aims to support the diversification of cryptocurrency investors’ portfolios and increase its user base, thereby enhancing trading liquidity.

CoinEx Reveals Insights Into Recent Platform HackHong Kong crypto exchange CoinEx has issued a further update relative to the security breach that occurred on the platform last week resulting in one of the exchange’s hot wallets being compromised.Photo by FLY:D on UnsplashImmediate responseIn the immediate aftermath of the $70 million hack, CoinEx took action to safeguard user assets and initiate an investigation into the incident. It suspended all deposit and withdrawal services and executed an emergency shutdown of the hot wallet server. Following this, the company securely moved the remaining assets to cold storage, commencing the process of reconstructing and deploying a new wallet architecture.The firm also engaged in an investigation, spearheaded by its wallet and security teams, to ascertain the extent of the breach. Moreover, CoinEx claims to have proactively reached out to fellow exchanges to freeze any assets related to the attack.Haipo Yang, the Founder and CEO of CoinEx, conveyed his apologies to affected users through his personal X (formerly Twitter) account. He emphasized the team’s commitment to restoring services promptly and reassured users that their funds will remain secure.Following up on that commitment, CoinEx published an update on the hot wallet hack on September 15 to address these concerns individually.New wallet deploymentThe exchange expects to finalize wallet upgrades within the upcoming week, after which withdrawals will gradually be phased in, subject to security evaluations. The CoinEx team is currently working on developing and deploying an entirely new and robust wallet system capable of managing activities across 211 chains and 737 assets.The firm has outlined that each of its product lines operates independently, featuring its own risk control system. Consequently, the security incident that occurred on CoinEx will not affect the integrity of its other product lines.In its most recent update on Tuesday, the Hong Kong crypto exchange confirmed that 80% of its wallet system has now been reconstructed. It added that it has initiated preparations to enable the withdrawal system on the platform. It stated:”Details about the resumption of withdrawals, including specific dates, times, and arrangements, will be announced on the CoinEx website. Please stay updated on our announcements for the latest information.”Ongoing investigationRegarding the identity of the attacker, CoinEx has confirmed that the matter is currently under investigation. While some security firms have made attribution claims, the company is focusing primarily on deploying the new wallet architecture, restoring affected users and functionalities, and enhancing overall security.At the same time, the company has initiated communications with the hackers in a bid to proactively seek a mutually agreeable resolution. While the incident implicates the loss of a substantial amount of funds, the firm maintains that in the context of the overall business, the sum represents only a small percentage of total assets under its management.Exchange security remains a major challenge in the crypto sector, with hacks happening on an ongoing basis. Last week, Seychelles-headquartered peer-to-peer crypto platform Remitano acknowledged a $2.7 million hack. At the beginning of September, crypto gambling platform Stake was reported to have suffered a $41 million hack.

Beijing-headquartered crypto mining equipment manufacturer Canaan recently revealed its financial results for the fourth quarter of 2023, demonstrating that it continues to struggle with profitability despite positive numbers relative to revenues and growth.Photo by Sasun Bughdaryan on UnsplashIncreased revenues and salesAccording to the company’s filing, during the last quarter of 2023 Canaan reported a surge of 45.7% in total computing power sold compared to the preceding quarter, reaching 5.5 million Thash/s. This ascent, which reflects a 191.9% increase from the same period in 2022, signifies not just a recovery but a robust resurgence in demand and operational ability. The company's dispatch of 19.6 million Thash/s throughout the year, marking a 29.6% leap from 2022, aligns with the rebound in bitcoin prices observed in Q4 2023, a pivotal factor shaping Canaan's operational revitalization. 47% growth on previous quarterA closer examination of the financials reveals not only surpassing total revenues but also a notable 47.3% quarter-over-quarter growth. Canaan's foray into international markets, bolstered by securing substantial orders from esteemed public company clients, underscores a buoyant sales performance and a positive outlook for the computing sector. Despite the buoyant sales and revenue figures particularly in the mining machine market, the sector has faced ongoing regulatory uncertainties and market fluctuations. Nonetheless, the company's strategic initiatives, alongside the positive market effects of the approval and listing of spot bitcoin exchange-traded funds (ETFs), have been positive. Moreover, Canaan's investments in wafer supply capabilities and strategic financial maneuvers garnered approximately US$136 million through at-the-market (ATM) programs and preferred shares. Recording a lossYet, the company’s journey in 2023 was not without its hurdles. Q4 2023 witnessed a significant increase in product revenues from the previous quarter but a decline from Q4 2022, attributed to dwindling sales prices as the halving event loomed, underscoring the volatility inherent in the cryptocurrency market. Results published last year are indicative of the company’s difficulty. In Q2 2023, revenues were strong, yet the company wasn’t turning a profit.With Q4 results, it’s now clear that the firm lost $421 million in 2023. In Q4, Canaan recorded a net loss of $139 million. That compares with a loss of $91 million in Q4, 2022. The company also expects tough market conditions in 2024. In its forward-looking outlook, it stated:”For the first quarter of 2024, and the second quarter of 2024, the Company expects total revenues to be approximately US$33 million and US$70 million, respectively, considering the challenging market conditions across the industry. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.” The crypto mining sector remains a very challenging market. With the upcoming Bitcoin halving event set to occur in April, it’s expected that as much as 20% of mining capacity could be forced offline, as some equipment would simply fail to mine on a profitable basis. Indicative of the challenges within the sector, crypto miner Core Scientific was forced into bankruptcy due to market difficulties in December 2022. It has only recently exited that bankruptcy process and now expects to generate revenues of $600 million in 2024. Another Bitcoin miner, Riot Platforms, has warned that profitability may be difficult to achieve in 2024 due to chip shortages.