Axie Infinity co-founder suffers $9.5M loss in wallet hack

China has inaugurated a new center in Shanghai dedicated to the international operation of its central bank digital currency (CBDC), the e-CNY, the People's Bank of China (PBOC) recently announced. The hub also launched three specialized platforms for cross-border digital payments, blockchain services, and digital assets, according to state-run Xinhua News Agency. The initiative is a key part of China's strategy to promote the digital yuan's adoption beyond its domestic borders. This effort aligns with a broader trend among BRICS nations, which have increased their use of the Chinese yuan for trade settlements. A Crypto Briefing report indicates that yuan-denominated payments accounted for roughly 24% of the bloc's trade transactions in early 2025.Photo by Edward He on UnsplashDifference between digital yuan and stablecoinsThe e-CNY, which functions without needing a bank account, is designed for daily uses like retail shopping, salary distribution, and transportation fares. While it cannot be converted into foreign currencies, its cross-border capabilities are being explored through the mBridge project, a multinational effort coordinated by the Bank for International Settlements. In contrast to the state-controlled e-CNY, privately issued stablecoins, blockchain-based tokens pegged to fiat currencies like the U.S. dollar, are also gaining traction. These digital assets, backed by reserves such as U.S. Treasury bills, are widely used for faster and cheaper cross-border payments and remittances. Hong Kong established a clear regulatory framework for stablecoins on Aug. 1, setting high standards for potential issuers. However, the Hong Kong Monetary Authority (HKMA) has stated that it does not expect to grant the first licenses until early next year. Yuan stablecoin in KazakhstanRecently, the HKMA had to clarify the status of stablecoin issuance in the region. According to the South China Morning Post, the monetary authority issued a statement refuting social media reports that the first offshore yuan-pegged stablecoin had been launched in Hong Kong. The company involved, AnchorX, later clarified on X that its yuan-pegged digital asset, AxCNH, was launched in Kazakhstan under a license from the Astana Financial Services Authority (AFSA). Despite its launch outside of Hong Kong, the AxCNH stablecoin is seen by some as part of Beijing's broader ambitions. Yang Guang, the CTO of Conflux, which provides technical expertise to AnchorX, told Reuters that the Sept. 17 launch represents an effort to leverage blockchain technology for international trade. Yang suggested that Beijing would likely support such initiatives if they facilitate commerce, noting that offshore yuan stablecoins could be issued without direct sign-off from China's central bank. Market analysts view China’s latest initiatives as part of a broader, multi-pronged strategy. Augustine Fan, head of insights at digital asset platform SignalPlus, described the stablecoin project as “another venue or trial to push the use of the offshore yuan,” adding that it also reflects the government’s cautiously positive stance toward blockchain technology. China’s stablecoin ambiguityAt the policy level, signals remain mixed. A Caixin report indicated that Chinese digital platforms, state-owned enterprises (SOEs), and financial institutions in Hong Kong may face restrictions on stablecoin and broader crypto activity. In addition, branches of SOEs and major banks are unlikely to seek stablecoin licenses in the region. The English version of the Caixin article remains accessible, but Cointelegraph observed that the Chinese-language version has since been taken down.At the same time, official engagement is visible. The National Natural Science Foundation of China (NSFC), a vice-ministerial institution under the Ministry of Science and Technology that oversees the National Natural Science Fund, earlier announced grants for research on stablecoins and the development of cross-border monitoring frameworks. According to the South China Morning Post, the foundation launched the study in response to concerns that unregulated circulation of private stablecoins, particularly those pegged to the U.S. dollar, could weaken capital controls and pose risks to the yuan. A clearer policy direction is expected once the results of this research are available.

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.

RBI Official Encourages Indian Banks to Adopt BlockchainIn a recent conference organized by the Reserve Bank of India (RBI), Deputy Governor Mahesh Kumar Jain highlighted the importance of adopting innovative technologies like artificial intelligence (AI) and blockchain to ensure sustainable growth and stability in the country’s banking sector.Speaking at the RBI-hosted event for directors of Indian banks last week, Jain emphasized the need for effective corporate governance, governance structure, and risk management strategies to tackle future challenges arising from technological disruptions, evolving customer expectations, and cybersecurity threats.Photo by rupixen.com on UnsplashLeveraging AI and blockchainThe recommendation to leverage AI and blockchain technologies aligns with India’s digital transformation goals and the desire to enhance customer experiences while investing in cybersecurity measures. Jain advised Indian banks to prepare for the future by focusing on digital transformation, exploring innovative technologies like AI and blockchain, and seeking collaborative opportunities with other industry players. He also emphasized the importance of upskilling the workforce to meet the demands of the digital era.Inconsistent approachThis proposal comes at a time when the Indian government’s stance on cryptocurrencies remains ambiguous. While India has been exploring the introduction of a central bank digital currency (CBDC), the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which aimed to establish regulations for digital currencies, has not been legislated.According to the RBI’s annual report, which was published on Tuesday, the central bank is progressing with its retail central bank digital currency (CBDC) pilot program, with plans to expand the number of banks involved, the use cases, and the number of locations. It had expanded the scope of the project to involve one million citizens, but it’s looking to broaden that user base also. In contrast, the country’s approach to decentralized cryptocurrency has been contradictory, sometimes banning it and at other times, allowing it.It is noteworthy that India’s neighbor, Pakistan, has also recently announced plans to train one million IT graduates in AI by 2027, with potential applications in weather prediction, agriculture supply chain optimization, and health services transformation.The RBI’s recommendation to adopt AI and blockchain technologies reflects the growing recognition of their potential benefits for the banking sector.Embracing tech innovation in bankingBy embracing these technologies, Indian banks can enhance efficiency, automate processes, and strengthen security measures. The adoption of AI and blockchain has the potential to transform various aspects of banking, including risk management, fraud detection, customer service, and transaction processing.While India continues to navigate the regulatory landscape surrounding cryptocurrencies, the central bank’s focus on AI and blockchain signals its commitment to embracing technological advancements and preparing the banking sector for the future. As India’s financial ecosystem evolves, the adoption of these technologies can empower banks to offer innovative services, streamline operations, and provide secure and efficient financial solutions to customers.The RBI’s emphasis on digital transformation, AI, and blockchain paves the way for Indian banks to explore new avenues for growth and resilience. As the country progresses on its digital journey, the adoption of emerging technologies will play a pivotal role in shaping the future of the banking sector and contributing to India’s overall economic development.