Bithumb and Korbit Struggle to Gain Traction Despite Zero Trading Fees

FPG Halts Withdrawals Following HackFloating Point Group (FPG), a prominent crypto prime brokerage platform, has temporarily halted trading, deposits, and withdrawals following a cyber security incident that occurred on Sunday.Photo by Thom Milkovic on UnsplashIncident responseFPG, headquartered in Singapore while maintaining a base in Hoboken, New Jersey in the United States, manages over $50 billion in assets. The firm took immediate action upon discovering the incident by engaging third-party forensics experts and law enforcement agencies.The company acknowledged the problem publicly via a tweet thread on Twitter on Wednesday. FPG stated that the company has locked all third-party accounts and secured its wallets while it investigates the extent and details of the breach. Although the full extent of the loss is still under investigation, the current estimate stands at approximately $15 million to $20 million in lost cryptocurrencies.Investigative cooperationIn response to the incident, FPG is collaborating with the FBI, the Department of Homeland Security, regulatory bodies, and Chainalysis to comprehend the nature of the attack and initiate asset recovery measures. As the investigation involving those entities is ongoing, specific details are not being disclosed at this stage, but FPG has pledged to provide updates as new information becomes available.The cyber security incident comes six months after FPG obtained a SOC 2 certification, which verifies the implementation of robust security, privacy, and control measures by service organizations to ensure the reliable handling of sensitive data and systems.Originally founded in 2018 at the Massachusetts Institute of Technology (MIT) in the US, FPG functions as both a crypto prime brokerage platform and an agency trading desk for asset managers, offering access to liquidity across various markets. In December, FPG announced that its blockchain foundation customers accounted for 5% of the total treasury management market.Backed by prominent investors such as Coinbase Ventures, Anthony Scaramucci of SkyBridge Capital, and Naval Ravikant, the founder of AngelList, FPG has raised a total of $12 million in funding thus far.In August of the previous year, FPG successfully registered as a virtual asset service provider (VASP) in the Cayman Islands. This registration ensured the secure custody of customer assets and safeguarded them from the company’s creditors in the unlikely event of bankruptcy.Broader crypto issuesIt has not been a good couple of weeks for the crypto sector relative to hacks and platform withdrawal pauses. Within the past twenty four hours, two Asia-based crypto lending platforms, Haru Invest and Delio, have suspended withdrawals. In those cases, the issue is suspected to relate to platform contagion and solvency issues.Earlier this month, the Atomic Wallet platform was hacked despite the understanding that the project offered self-custodial wallets. Originally, the loss was estimated at $35 million, but more recent reports are now estimating that figure to be in excess of $100 million.As FPG continues its efforts to mitigate the aftermath of the cyber attack, industry participants eagerly await further updates and measures undertaken by the company to recover from this incident and restore trust among its clients.

Major investment entities linked to the Abu Dhabi government increased their exposure to Bitcoin in the third quarter, according to newly released data. These moves came ahead of a broader decline in the digital asset market amid shifting macroeconomic conditions in the U.S.Photo by Kanchanara on UnsplashInstitutional accumulationThe Abu Dhabi Investment Council (ADIC), a subsidiary of Mubadala Investment Company, more than tripled its holdings in BlackRock’s iShares Bitcoin Trust ETF (IBIT) during the third quarter, increasing its position from 2.4 million to nearly 8 million shares, Bloomberg reported. An ADIC spokesperson told Bloomberg that the organization views Bitcoin as “a store of value similar to gold,” and described the allocation as “part of a long-term diversification strategy.” Other UAE-based conglomerates are also maintaining sizable Bitcoin positions. The Royal Group, which is linked to the Abu Dhabi royal family, holds around 6,450 BTC, according to a Crypto Briefing report citing Arkham data. The assets were accumulated through the group’s majority-owned subsidiary, Citadel Mining. Regulatory and infrastructure developmentsThe UAE’s efforts to position digital assets as a driver of economic growth are also reflected in its regulatory framework. A recent Global Digital Assets Report by the Global Finance & Technology Network (GFTN) identified the UAE as one of seven jurisdictions worldwide whose crypto-exchange rules meet all three key standards for AML/CFT compliance: know-your-customer (KYC) and ID verification, suspicious transaction reporting, and implementation of the Financial Action Task Force (FATF) Travel Rule. The report characterized the UAE’s approach as “federated oversight with zone-specific AML regimes.” Responsibilities are divided among the Securities and Commodities Authority (SCA) at the federal level, the Virtual Assets Regulatory Authority (VARA) in Dubai, and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). In decentralized finance (DeFi), VARA has issued specific rulebooks covering activities such as lending and borrowing. ADGM has introduced DLT Foundations Regulations to provide legal structures for decentralized autonomous organizations (DAOs), while DeFi operations within the jurisdiction still require authorization from the FSRA. In addition to regulatory developments, the UAE is also advancing the practical deployment of digital asset technologies. In the payments sector, Abu Dhabi Airport has signed a memorandum of understanding (MOU) with Al Hail Holding to pilot stablecoin payment options and digital wallets for travelers, according to Cryptopolitan. Bitcoin declining below $87KThe buildup in institutional exposure has occurred against a backdrop of declining market prices. Bitcoin (BTC) reached a peak of $126,080.00 on Oct. 6 before dropping to roughly $87,000 as of Nov. 21, its lowest level since April 21. Technical indicators show that Bitcoin has fallen below both its 50-day and 200-day moving averages. IBIT has followed a similar trajectory. After closing the third quarter at $65 per share, the ETF rose to $71 on Oct. 6 before falling to $48.96 by Nov. 20. Two days before that, the fund recorded a net outflow of $513.47 million, the largest in its history, according to data from Trader T. Reuters reported that the recent weakness in Bitcoin and other risk assets is tied to the U.S. Federal Reserve’s cautious stance on rate cuts amid persistent inflation pressures. That concern was reinforced on Nov. 20 when the U.S. Bureau of Labor Statistics released September nonfarm payrolls data that had been delayed by the federal government shutdown, showing a figure of 119,000 against the market forecast of 53,000. The stronger-than-expected labor reading has reduced expectations for a rate cut next month, adding pressure to both equities and Bitcoin. 

Chinese financial industry groups have warned that illegal fundraising and fraud are increasingly emerging through stablecoins, airdrops, real-world asset (RWA) tokens, and crypto mining schemes, according to a Dec. 5 notice carried by the state-run Xinhua News Agency.Photo by Othman Alghanmi on UnsplashThe joint warning was issued by seven major bodies: the National Internet Finance Association of China, the China Banking Association, the Securities Association of China, the Asset Management Association of China, the China Futures Association, the China Association for Public Companies, and the Payment & Clearing Association of China. These groups stated that such products are being used to drive speculative trading, pyramid schemes, and other illicit activities that threaten financial stability. They stressed that cryptocurrencies are not legal tender in China and do not share the legal status of fiat currency, further noting that regulators have not approved any RWA tokenization activities. Crypto and RWA offerings prohibitedConsequently, the notice bars member institutions from directly or indirectly providing services related to the issuance or trading of cryptocurrencies or RWA tokens. The associations also urged members to intensify risk warnings and investor education, while encouraging the public to report suspected violations. This industry alert follows the central bank’s recent reiteration of its concerns regarding speculative crypto activity. According to Reuters, the People’s Bank of China (PBOC) last month restated its ban on crypto-related business, citing a resurgence in speculation and compliance gaps in stablecoins that complicate risk management. The central bank plans to tighten enforcement against unlawful operations, reinforcing the blanket ban on crypto transactions and mining imposed in September 2021. Old Bitcoin loan feud resurfacesDespite this restrictive framework, disputes tied to legacy crypto dealings continue to surface. Cryptopolitan reported that a long-running controversy has re-emerged surrounding Li Feng, a co-founder of Moore Threads, a Chinese GPU designer widely viewed as a homegrown rival to Nvidia. According to Cryptopolitan, the scrutiny follows the company's Dec. 5 debut on the Shanghai Stock Exchange, where it raised 8 billion yuan ($1.1 billion). Reportedly, Li faces accusations of failing to repay 1,500 Bitcoin allegedly borrowed from OKX founder Xu Mingxing. Citing a Foresight News post referenced by analyst AB Kuai.Dong on X, the report indicates that Li and angel investor Xue Manzi launched a cryptocurrency in 2017, raising 5,000 ETH. According to the outlet, Li has been accused of failing to repay 1,500 Bitcoin that he purportedly borrowed from OKX founder Xu Mingxing. Xu is said to have raised the issue publicly and sought resolution through legal proceedings in both China and the U.S. However, the legal ambiguity surrounding cryptocurrencies at the time was viewed as a major obstacle to settlement. Li, for his part, has characterized Xu’s contribution as a failed investment. The situation took a constructive turn when Xu reposted AB Kuai.Dong’s post, saying observers should look past old disputes. Xu encouraged a focus on constructive industry growth and stated that debt matters should be left to legal channels, offering goodwill toward fellow entrepreneurs. The timing of the renewed dispute alongside recent industry warnings highlights a consistent focus on risk control and legal clarity within China’s digital asset space. Authorities continue to emphasize investor protection and formal reporting channels to curb speculation, while market participants are increasingly turning to legal avenues to resolve legacy issues. These developments point to a sector still wrestling with unresolved disputes and regulatory gaps, underscoring the need for clearer rules for both regulators and entrepreneurs.