๐ŸŒ South Africa break crypto continent record

All Things Flooz newsletter is for innovators, creators and traders.

Flooz

6 min read โ€ข Jul 8, 2023


Talking points

  • ๐Ÿช“ Binance senior staff exodus

  • ๐Ÿ”“ Multi-chain bridges exploited

  • ๐Ÿ“œ South Africa impose crypto exchange mandate

Let's start things off by glancing over last week's biggest trends.

๐Ÿ‘€ Quick Market Outlook

It's been another week of crypto and yet another week of uncertainty...

We have seen Bitcoin and the market hop between a similar price for a while now with no clear indication as to whether we are on the move up or down and the FUD surrounding Binance definitely doesn't help.

Here's some insight into what we could expect to see:

It seems the market is primed to move in either direction depending on narratives and FUD but the short term doesn't seem great. But that means more opportunities to get into your favourite tokens that you haven't quite been able to snap up recently.

Remember... only invest what you can afford to lose.

๐Ÿช“ Binance senior staff exodus

In an unexpected turn of events, Binance, the embattled crypto exchange, finds itself waving goodbye to not one, not two, but three senior officials this week.

According to reports, Binance's General Counsel, Han Ng, Chief Strategy Officer, Patrick Hillmann, and Senior Vice President for Compliance, Steven Christie, have all decided to make their grand exit.

But that's not all... Binance's Global Vice President of Marketing and Communications, Steve Milton, bid farewell in June. And let's not forget the recent departure of Senior Director of Investigations, Matthew Price. It seems like Binance is playing a game of executive musical chairs.

When asked to comment on this exodus, a Binance spokesperson mysteriously vanished, leaving us all hanging in suspense. What could be the cause of this mass exodus? Well, rumor has it that it's all about the CEO, Changpeng "CZ" Zhao, and his response to an ongoing investigation by the U.S. Department of Justice. Apparently, the investigators are digging into allegations of Binance's attempts to outsmart U.S. regulators, along with some money laundering and sanctions violations thrown into the mix.

But hold on, there's more!

Now, Binance was already caught in a tangled web of investigations by regulators from around the world. It's like they stumbled into a regulatory spider's den! Just last month, the Securities Exchange Commission (SEC) launched a legal attack, slapping Binance with allegations of 13 securities law violations. And if that wasn't enough drama, the Commodity Futures Trading Commission (CFTC) also sued them a couple of months ago. But wait, there's more! European and Australian regulators have jumped on the bandwagon too, leading investigations of their own.

All these investigations have sent shockwaves through Binance's operations, leaving their stateside business in turmoil. U.S. regulators are even suggesting that their international trading arm is deeply intertwined with their U.S. affairs. As a result, Binance lost a major European banking partner, and Binance.US announced they would stop trading in U.S. dollars.

It's as if the regulators have pressed the pause button on their crypto extravaganza.

Either way, things are not looking great for Binance and we could see this reflect badly on the crypto world if things don't get better soon.

๐Ÿ”“ Multi-chain bridges exploited

Multi-chain, the cross-chain router protocol, has fallen victim to a daring exploit, resulting in a jaw-dropping loss of nearly $130 million!

In a cryptic tweet, Multi-chain admitted that assets stored in their MPC address mysteriously vanished, finding their way into an unknown address. The team is scratching their heads, unsure of what exactly happened, and launching a full-blown investigation. As a precautionary measure, they've advised all users to halt the use of Multi-chain services and revoke any contract approvals related to the protocol. It's a cryptic mystery in the crypto universe!

The attacker, like a crafty magician, managed to drain Multi-chain's Fantom bridge, leaving it nearly empty of its valuable holdings. Tokens like WBTC, USDC, USDT, and a handful of altcoins were whisked away, with their combined worth surpassing a staggering $130 million. It's a disappearing act that left on-chain sleuths scratching their heads. Michael Kong, the CEO of Fantom Foundation, expressed his confusion and promised to dive deep into the puzzling situation.

https://twitter.com/MultichainOrg/status/1677096839731097600?s=20

It's a crypto whodunit essentially...

But this saga doesn't end there. Multi-chain has been facing mounting pressure for quite some time, with technical glitches and an absent CEO raising eyebrows. Now, with these three unexplained outflows from their Fantom, Moonriver, and Dogecoin bridge contracts, the crypto Twitterverse is buzzing with fears of a full-blown hack. The suspense is killing us! We reached out to Multichain for comment, but they seem to be hiding in the shadows.

Let's take a closer look at the assets that were cunningly transferred out of the Multi-chain Fantom bridge. At least $20 million worth of altcoins, including DAI, LINK, and USDT found their way to the address 0x9d57. The plot thickens!

There were also significant outbound moves, with 1,023 wBTC worth around $30.9 million and 7,214 wETH totaling approximately $13.6 million. And let's not forget the jaw-dropping $57 million of USDC hopping between two separate addresses. It's a high-stakes crypto chase ๐ŸŽ ๐ŸŽ ๐ŸŽ

Meanwhile, Multi-chain's Moonriver bridge contract also suffered losses, with $6.8 million worth of tokens flowing out. The WBTC, USDT, USDC, and DAI disappeared into the clutches of another address. And last but not least, the Dogecoin bridge witnessed over $600,000 in USDC outflows.

The question on everyone's lips now is... what happens from here?

Well, it seems like they are looking at recovering and refunding any losses where possible but it is another case of security breach which is another concern for the crypto community.

๐Ÿ“œ South Africa impose crypto exchange mandate

South Africa is taking centre stage in the world of crypto regulations! According to a report by Bloomberg, the country's financial regulator, the Financial Sector Conduct Authority (FSCA), has made a grand announcement.

Unathi Kamlana, the commissioner of the FSCA, spilled the beans and revealed that they have already received around 20 license applications since the doors opened. Kamlana expects a flood of applications to pour in before the November 30 deadline. Talk about a race against the clock!

Now, here's where things get spicy. If any crypto exchanges dare to continue operating without a license after the deadline, the FSCA is ready to throw down the gauntlet. That's right, they mean business! They're prepared to take "enforcement action," which could involve hefty fines or even the dramatic closure of noncompliant firms.

Cue the suspenseful music..

Kamlana, in an interview, emphasised the importance of introducing a regulatory framework for crypto products. Apparently, there's a potential risk of serious harm to financial customers, and the FSCA is here to protect them from the wild west of crypto. Kamlana also mentioned the need for time to assess the effectiveness of these measures and promised to collaborate with the industry to fine-tune and implement the necessary changes. It's like a never-ending drama series!

But wait, there's more excitement on the horizon. South Africa is officially taking the lead on the African continent as the first country to require digital asset exchanges to obtain licenses. They're setting the stage for other countries to follow suit in the ever-evolving world of crypto regulations. Bravo, South Africa, for being the trendsetter!

This licensing requirement has a ripple effect on major trading venues in South Africa, such as Luno, owned by the Digital Currency Group, and the VALR crypto exchange, backed by Pantera Capital. Even global platforms like Binance, operating in the country, will have to secure licenses.

It's a game-changer for the crypto landscape for sure! So, what happens if you're providing financial services in crypto assets? Well, unless you're a crypto miner or an NFT service provider (the lucky exceptions), you better get authorised, my friend.

Failure to comply with this requirement is a big no-no and could land you in hot water with the regulatory authorities.

But South Africa isn't the only country tightening the reins on crypto. Just recently, on the world stage, the Monetary Authority of Singapore announced its own regulations.

Crypto service providers in Singapore must place customer assets into a statutory trust for secure storage by the end of the year. It's a global movement towards more stringent crypto regulations, and the show is just getting started!

It seems security and customer protection is the way forward but as a result this will likely make it more difficult for users to access a wide range of crypto services.

Let's just hope exchanges jump onto these sanctions quickly!

Flooz.xyz and related logos are trademarks of Flooz Inc., or its Affiliates. The views or opinions expressed herein do not necessarily reflect the views of Flooz and summaries information only. The content presented herein, is provided for general informational purposes only. Such content may rely on third-party sources. We do not make any warranties, whether express or implied, regarding the accuracy or actuality of the information provided. We do not explicitly or implicitly assume liability or provide any guarantee regarding the timeliness, accuracy, sufficiency, or completeness of the information provided. Additionally, we do not accept responsibility for any financial losses resulting from the use of the information displayed. No content on our Site constitutes a solicitation or offer. Any prices displayed are for illustrative purposes only, and actual prices and statistics may vary. None of the content we provide should be construed as financial advice or any other form of advice. Reliance on the content displayed is entirely at your own risk and discretion. It is imperative that you conduct your own research, review, analysis, and verification of the content displayed before making any decisions. You are solely responsible for your investment decisions. The information provided on this Site is not a substitute for personalised investment advice that is tailored to your individual needs. Trading is inherently risky and can result in significant losses. It is advisable to consult with a qualified financial advisor before making any investment decisions. The acquisition of securities or cryptocurrencies carries risks that may lead to a complete loss of the invested capital.

Discover