According to data from Arkham Intelligence, the federal government transferred approximately $921.4 million from wallets containing funds seized from the Bitfinex hack.

The US government recovers and transfers around $1 billion in funds recovered from the hack that hit Bitfinex in 2016. The original incident involved the massive loss of $4.5 billion. Although the target wallet addresses are not yet known, hacker Ilya Lichtenstein is contributing as a witness, offering crucial details about how he executed the attack.

On February 28, it was revealed that Lichtenstein is testifying against the cryptocurrency mixer used in the $4.5 billion hack in 2016. Unexpectedly, Lichtenstein is now collaborating with the US government as a witness, sharing details about how he carried out the massive theft of Bitcoin.

In his statements, he admitted to maintaining access to Bitfinex systems for months, including infiltrating individual accounts at Coinbase and Kraken.

Hong Kong Ends License Applications for Cryptocurrency Exchanges

Hong Kong has ended accepting license applications for cryptocurrency exchanges as of February 29, announcing that non-compliant platforms will have to close operations locally shortly. The Securities and Futures Commission (SFC) of Hong Kong established that all cryptocurrency exchanges in the region that have not submitted license applications must cease operations by May 31, 2024.

A notice issued by the Hong Kong SFC highlights the importance of investors using virtual asset trading platforms to prepare in advance. In addition, it is recommended that they migrate towards those that have already obtained operating licenses or have submitted applications.

To date, the SFC has formally granted licenses to two cryptocurrency trading operators in Hong Kong. This is the case of OSL Digital Securities on December 15, 2020. As well as HashKey Exchange on November 9, 2022.

Exploit in Seneca Stablecoin Protocol Triggers $6 Million Loss

Stablecoin protocol Seneca experienced an exploit that resulted in a loss of over $6 million on the Ethereum and Arbitrum networks. The attack, targeting the protocol’s smart contract approval mechanisms, was executed by an unknown attacker who exploited a vulnerability identified as an “arbitrary calling issue” by Blocksec security analysts.

Blocksec revealed that Seneca’s smart contracts lacked code that would allow the team to pause them, placing the onus on users to revoke permissions. The stolen assets are estimated to amount to more than 1,900 ETH, equivalent to $6 million.

ASIC Imposes Travel Restrictions on Former Blockchain Global Director Over Fears He Will Abscond

The Australian Securities and Investments Commission has obtained travel restriction orders against Liang Guo, also known as Allan Guo, who was the former director of the defunct Blockchain Global Limited.

Australia’s federal court ruled, among other measures, that Guo cannot leave or attempt to leave the country until August 20, 2024, ASIC announced yesterday.

These orders were issued following a hearing on February 20, 2024. They also arise due to ASIC’s concerns that Guo may attempt to leave the country. Importantly, Guo did not attend the hearing.

Guo is currently being investigated by ASIC, as are former Blockchain Global directors Samuel Xue Lee and Zijang (Ryan) Xu, following the collapse of the ACX Exchange cryptocurrency exchange operated by Blockchain Global.

The hearing was held in Guo’s absence; therefore, he has not yet had the opportunity to respond to ASIC’s application or the basis upon which ASIC claims the orders are necessary.

By Audy Castaneda


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