Worldcoin launches in Singapore post India hiatus

Remitano Struck by $2.7M Alleged HackHacks have been an unfortunate constant in the crypto and DeFi space with that reality having been compounded by news that Seychelles-based crypto exchange Remitano is believed to have been the victim of a $2.7 million heist.Photo by Growtika on UnsplashSuspicious transactionsIt’s understood that the firm encountered highly suspicious transactions, with the $2.7 million having seemingly vanished from its wallet, all at the hands of a single account. The incident unfolded on Thursday and has left blockchain analysts speculating about a potential security breach.The Remitano hot wallet initiated transfers to an address devoid of any prior transaction history. These transfers amounted to approximately $1.4 million in Tether (USDT), $208,000 in USD Coin (USDC), and 104,000 ANKR tokens (valued at $2,000 at the time). Those transfers raised concerns about the security of the platform.Israeli blockchain analytics platform Cyvers promptly sounded the alarm, notifying the crypto community about these suspicious transactions that had drained significant sums from Remitano’s coffers. This sudden event raised concern within the crypto space and naturally among Remitano customers.Tether freezes wallet addressAmid the growing apprehension, Tether, the issuer of USD stablecoin USDT, took decisive action by freezing the address associated with the alleged attacker. This swift intervention effectively halted any further movement of $1.4 million worth of drained cryptocurrency. Tether’s proactive response could potentially have prevented additional loss, preserving customers’ assets from further depletion.Remitano had remained notably silent initially in the wake of this incident, declining to issue any formal statement regarding the breach. It has since acted, as on Friday, it published a statement relative to the issue on its website. The absence of communication from the exchange had only fueled greater speculation surrounding the incident. However, the statement outlined:”On September 14, 2023, our Security Management team discovered a data breach from a third-party source that had compromised some of our sensitive information. As a result, a small amount of funds from the exchange’s hot wallets were transferred to suspicious wallet addresses through unauthorized withdrawal transactions.”Remitano, recognized as a peer-to-peer cryptocurrency exchange and payment processor, primarily caters to users in emerging markets across several countries, including Pakistan, Ghana, Venezuela, Cambodia, Kenya, Malaysia, India, South Africa, Vietnam, and Nigeria.The firm sought to reassure its customers:”As of now, Remitano ensures that users’ assets have NOT been and will NOT be affected by this incident. We are working tirelessly to uphold our commitment to ensuring the security and protection of your crypto assets.”Remitano was established in 2015; it is operated by Babylon Solutions Limited, which is headquartered in the Seychelles.Unfortunately, this episode adds to the troubling trend of cryptocurrency exchange hacks witnessed in 2023. Authorities in the United States have attributed these attacks to the Lazarus Group, a notorious cyber-crime organization allegedly linked to the North Korean government which has wreaked havoc globally although disproportionately so within the Asian region.

Dubai-headquartered global crypto exchange Bybit has integrated the Avalon Finance protocol within its platform to offer users greater opportunities to earn yield on Bitcoin. Avalon Finance is a decentralized lending protocol that offers a range of financial services on the Merlin Chain, a Bitcoin layer-2 network. It facilitates users to borrow stablecoins using their Bitcoin as collateral, while also providing opportunities to earn yield by contributing to digital asset liquidity pools.Photo by Kanchanara on UnsplashCeFi to DeFi bridgeAvalon Labs, the driving force behind the Avalon Finance protocol, took to X on April 14 to outline that the protocol had gone live on Bybit. It stated:”By integrating with Bybit Earn, Avalon unlocks new yield opportunities for Bitcoin holders by arbitraging our fixed-rate institutional borrowing layer — delivering predictable, enhanced returns through a seamless CeFi-to-DeFi bridge.” Avalon claims to offer a mechanism which brings Bitcoin into DeFi. It accepts FBTC, an omnichain digital asset with $1.25 billion in total value locked (TVL), pegged 1:1 with Bitcoin, as collateral, while lending it out at fixed interest rates. USDT stablecoin borrowed on the strength of that Bitcoin can then be deployed by platform users to execute high-yielding DeFi strategies via the Ethena Labs synthetic dollar protocol, implicating the use of Ethena USD (USDe) and Ethena Staked USD (sUSDE). In this way, the Avalon Finance protocol is providing a conduit between centralized finance and decentralized finance. Avalon Labs claims that the offering turns Bitcoin into a productive asset. It stated: “Returns are stable, secure, and passed back to Bybit Earn users—making Bitcoin a productive asset while maintaining simplicity and risk control.” More exchange collaborations plannedIt’s understood that Avalon plans to collaborate similarly with other crypto exchanges in the future. Towards the end of 2024, the firm raised $10 million in Series A funding, with the funding round having been led by Framework Ventures, with participation from UXTO Management, Presto Labs and Kenetic Capital. At the time, Avalon Labs asserted that the funding would be used to expand its Bitcoin-centric ecosystem.  BTC-backed public debt fundTaking to X in February, the project outlined that after years of research, it was working towards the launch of a Bitcoin-backed public debt fund that would fall within the parameters of the U.S. Securities and Exchange Commission’s (SEC) regulatory framework. The firm stated:”By exploring regulated investment structures, we aim to bridge the gap between traditional finance and crypto, opening new opportunities for Bitcoin-backed financial products.” Regulation A is an exemption offered by the SEC enabling a company to sell securities to the investing public without full registration. Should it eventually take this path forward, the project would pioneer this approach to launching a public debt fund as little progress has been made by others in taking such a Bitcoin-related product forward to date. Towards the end of last month, Avalon Labs announced that it has added support for BlackRock’s “BUIDL” fund, a tokenized fund created by the world’s largest asset manager, which invests in short-term U.S. Treasury bills.

In a major crackdown, the Chengdu Public Security Bureau announced on May 15 the dismantling of an extensive underground banking network, resulting in the arrest of 193 suspects across China in an operation that unveiled illegal businesses using the U.S. dollar stablecoin, Tether (USDT).Photo by DrawKit Illustrations on UnsplashUnauthorized foreign exchange settlements These activities involved illicit transactions amounting to approximately 13.8 billion yuan ($1.9 billion). The investigation began in November 2022 when authorities detected suspicious activities involving underground banks in Chengdu’s Longquanyi district. In response, a specialized task force was formed, integrating experts from various police departments, including economic investigation, cyber security and legal affairs. This team uncovered unauthorized foreign exchange settlements that bypassed national regulations. On June 1 of last year, acting on instructions received from the Ministry of Public Security, the task force conducted coordinated raids in several major cities, such as Shanghai and Shenzhen. These efforts led to the capture of key figures in the criminal syndicate, involving the arrest of 25 suspects. Law enforcement seized numerous bank cards, payment instructions and other digital payment instruments tied to the illegal operations during these raids. A broader investigation across 26 provinces has resulted in 193 suspects being arrested. Using USDT to evade regulationFurther investigations revealed that since January 2021, the syndicate exploited its import and export business to facilitate illegal activities. By using USDT as a medium, they bypassed official foreign exchange channels to service clients needing to transfer funds internationally. Moreover, these operations were intricately linked to other illicit activities, including financial fraud and smuggling. In a related development, on May 13, BeInCrypto reported that the Chinese government arrested six individuals responsible for illicit crypto transactions worth $295 million. These arrests highlight the challenges and risks associated with cryptocurrency in unregulated environments. Additionally, the Hong Kong police recently apprehended three men at a currency exchange shop following a deceptive transaction involving Tether’s USDT. The suspects allegedly showed a customer ceremonial "hell money" before deceitfully persuading him to transfer about $128,073 worth of USDT, only to refuse the agreed-upon cash exchange afterward.  According to the South China Morning Post (SCMP), hell banknotes are a form of ceremonial paper money burned as an offering to ancestors or deities in traditional Chinese culture. Late last year, USDT was used by a gang of gold smugglers in Nepal, who received $16 million in the Tether stablecoin in exchange for the precious metal. A joint investigation carried out by the authorities in Nepal and China led to the arrest of two Chinese and 13 Nepalese nationals in connection with the illicit activity. Over the course of the weekend, it emerged that two Chinese nationals had been charged by the authorities in the United States with money laundering through Bahamas-based Deltec Bank. Deltec acts as the primary banker for Tether, prompting longstanding Tether critics to suggest illicit activity relative to the stablecoin issuer’s dealings with the bank. This series of arrests and discoveries underscores the ongoing efforts of Chinese authorities to clamp down on illegal cryptocurrency activities. The activity also poses problems for Tether in its efforts to maintain compliance and stamp out illicit use in the face of ever-increasing regulatory scrutiny worldwide.