Hong Kong regulator extends swift licensing process to new applicants

Mixin Network Suspends Services Amid $200 Million HackOn Monday, Mixin Network, a decentralized peer-to-peer network whose project team is based in Hong Kong, officially confirmed a substantial security breach that resulted in the loss of approximately $200 million in crypto assets from its mainnet.Photo by GuerrillaBuzz on UnsplashSeptember 23 hackThis incident, disclosed via an X (formerly Twitter) post, prompted the immediate suspension of all deposit and withdrawal services on Mixin Network until further notice.The project team outlined that the hack occurred on September 23, exposing vulnerabilities that allowed malicious actors to compromise the database of a third-party cloud service provider. Mixin Network has taken action to address the situation, enlisting the expertise of Singapore-headquartered blockchain security investigator SlowMist and the support of Google to conduct a thorough investigation and formulate a recovery plan.At the time of the breach, Mixin Network’s holdings included $94.48 million in Ether, $23.55 million in Dai, and $23.3 million in Bitcoin, as reported in an independent investigation by PeckShield. The total value of assets affected amounted to $141.32 million.Cyvers, an Israeli Web3 security firm, has also been looking into the matter on Monday. In a social media post, the firm stated:”Our internal investigation has uncovered suspicious funding transactions involving @MixinKernel hacker addresses. Two of hacker addresses received 51 $ETH from 0x1795F0eBDa5A836aE63F28CE546E72de069A8bd2 who was interacted with @HuobiGlobal and @binance.”The firm goes on to call on Binance and its CEO Changpeng Zhao (CZ) and Huobi to help identify the wallet address in question.Halting withdrawalsIn response to the security breach, Mixin Network has temporarily halted all deposits and withdrawals on its platform. These services will only resume once the vulnerabilities have been identified and fully resolved. On X, the project stated:”Deposit and withdrawal services on Mixin Network have been temporarily suspended. After discussion and consensus among all nodes, these services will be reopened once the vulnerabilities are confirmed and fixed. During this period, transfers are not affected.”Details regarding the plans to recover the lost assets for affected users have yet to be announced.Despite initial promises that Mixin Network’s Founder, Feng Xiaodong, would address the incident in a public Mandarin live stream on September 25, links to the live stream were not provided on the official social media channels or the website mixin.network.The incident has garnered criticism on the basis of a lack of decentralization. One commentator stated:”Some of those blockchain protocols are so decentralized that when their cloud database is hacked, coins are also gone.”Ongoing hacksThis security breach on Mixin Network is the latest in a series of high-profile crypto-related incidents. Ethereum Co-Founder Vitalik Buterin recently fell victim to a SIM swap attack, which resulted in the compromise of his X (formerly Twitter) account.In a statement, Buterin revealed that the hackers had successfully executed a SIM swap, a type of attack that targets the victim’s mobile phone number to gain unauthorized access to various online accounts, including social media, banking, and cryptocurrency platforms.The repercussions of the Mixin Network hack underscore the ongoing challenges faced by the crypto industry in ensuring the security and protection of digital assets. As investigations continue, affected users await further developments and the eventual resumption of deposit and withdrawal services.

Phoenix rises 50% on ADX debutDubai-headquartered crypto mining firm Phoenix has debuted on its Abu Dhabi Securities Exchange (ADX). The mining equipment hardware retailer witnessed a 50% surge in its share price following a successful initial public offering (IPO) that raked in $371 million.Photo by Marios Gkortsilas on UnsplashFortuitous IPO schedulingIt emerged last week that the company had adjusted its ADX IPO launch date from Monday to Tuesday to account for the holiday schedule in the United Arab Emirates (UAE) and to “ensure comprehensive participation in the IPO.”That adjustment may have been significant in garnering the level of participation that transpired. Bitcoin and to a lesser extent, the broader crypto market, surged to levels not seen since early 2022. From a low of $876 billion on June 15, 2022, overall crypto market capitalization currently stands at $1.6 trillion.With the Bitcoin unit price having exceeded the $42,000 level on Monday for a time, it’s likely that news of a crypto market resurgence would have aided Phoenix Group’s IPO success on Tuesday morning. In trading on Monday, publicly quoted bitcoin miners such as Riot Platforms, Marathon Digital and CleanSpark had recorded share price gains of between 8 and 11% on the Nasdaq in the United States.Surpassing expectationsTuesday’s trading surpassed the expectations of even the most optimistic analysts, with shares opening at 2.25 dirhams and marking a 50% increase from the IPO price of 1.50 dirhams. The ADX, chosen as the platform for Phoenix’s IPO, was strategically selected due to its alignment with the company’s dynamic vision and the rapidly expanding financial market it offers.The overwhelming response from investors resulted in a 33-times oversubscribed offering, translating into orders totaling $12 billion. The retail portion of the offering experienced an even more astonishing over-subscription rate of 180x.Munaf Ali, Co-Founder & Group MD of Phoenix, sees this milestone not merely as a listing event but as a profound declaration of the Middle East’s ascendance in the global tech and blockchain landscape. He attributes the success of Phoenix’s debut to a burgeoning appetite for financial innovations in the Middle East, underscoring the growing interest in exposure to the cryptocurrency sector among investors in the region.Mining to AI pivotPhoenix’s debut on the ADX occurs at a time when other publicly listed companies in the cryptocurrency sector are reorienting their focus from mining digital currencies to supporting the computational needs of the artificial intelligence (AI) industry. In 2022, the sector generated revenues of $6 billion, a slight dip from the record-breaking year of 2021.Industry analysts, including JPMorgan, posit that the high-performance computing (HPC) sector in AI could prove more profitable than Bitcoin mining. This strategic shift is evident in the rebranding of well-known Bitcoin mining entities such as Riot Blockchain (now Riot Platform) and Hive Blockchain Technologies (now Hive Digital Technologies), emphasizing their diversification efforts.Phoenix, acknowledging the potential of the AI-focused sector, believes it could complement its existing operations and contribute to future growth, aligning with JPMorgan’s forecasts regarding the profitability of HPC in the AI industry.

Crypto.com Becomes Preferred Platform for Paypal’s PYUSDIn an ever-tightening integration of conventional financial systems with the realm of cryptocurrencies, Singapore’s Crypto.com has forged a strategic alliance with PayPal and Paxos.Photo by Brett Jordan on PexelsProviding liquidity for PYUSD trading pairsAccording to a press release published by the crypto trading platform on Thursday, the alliance will fortify Crypto.com’s status as the foremost exchange platform for PayPal’s USD-pegged stablecoin, PYUSD. The implications of this collaboration extend far and wide, affecting both individual retail traders and institutional investors.With this move, the platform solidifies its position as the premier destination for managing PYUSD, boasting the most extensive global liquidity for PYUSD trading pairs. PYUSD, masterminded by digital asset solutions firm Paxos Trust Company, is a stablecoin backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents. This robust backing provides the digital asset with stability and dependability.Gathering momentumThe new stablecoin is rapidly gaining recognition and prominence, securing placements on major cryptocurrency exchanges such as Bitstamp, Coinbase, and Kraken. It also functions as a preferred payment option on platforms like BitPay and MetaMask. Most notably, the New York State Department of Financial Services has given its seal of approval to PYUSD, categorizing it under its coveted “green list” of regulated cryptocurrencies.The collaboration between Crypto.com, PayPal, and Paxos is an extension of their preexisting partnership that allowed users to fund the Crypto.com visa card using PayPal. Joe Anzures, Senior Vice President of Americas and Global Head of Payment Partnerships at Crypto.com, pointed towards Paxos’ status as a stablecoin issuer and emphasized the potential to connect more than 80 million Crypto.com users with cutting-edge crypto innovations while providing vital support to PayPal’s extensive global network of consumers and merchants. Anzures remarked:“Connecting our more than 80 million users to the latest crypto innovations, as well as supporting PayPal’s global network of consumers and merchants, will be pivotal in our continued pursuit of crypto to every wallet.”Importance of stablecoinsThe collaboration also shines a spotlight on the growing importance of stablecoins within the cryptocurrency ecosystem. As stablecoins continue to gain traction and become more accessible, this partnership is poised to expedite the widespread adoption of digital assets in the global financial landscape.In a related development, leading USD stablecoin issuer Circle struck up a strategic partnership earlier this month with Singapore super app Grab, with Circle’s Web3 services platform being integrated into the Grab app as part of the deal.Meanwhile, the local regulator, the Monetary Authority of Singapore (MAS), announced the outline of a new regulatory framework in respect of stablecoins in August.Crypto.com’s partnership with PayPal and Paxos represents a significant leap forward in the cryptocurrency space. The collaboration will likely boost the exchange’s reputation as a premier destination for PYUSD trading, fostering accessibility to cryptocurrencies and contributing to the ongoing convergence of traditional finance with the digital asset landscape.As stablecoins like PYUSD continue to garner regulatory approval and broader acceptance, the cryptocurrency ecosystem continues its journey toward mainstream recognition.