According to the crypto portfolio tracking app, Coinstats, suspected North Korea-linked hackers are believed to be behind the security breach on June 22, which impacted 1,590 user wallets, The Coinstats team has advised users with affected wallet addresses to immediately transfer their funds using their exported private keys. Coinstats App Shut Down Coinstats, the crypto […]
Bitcoin News
Latam Insights: Paraguay Shuts Down Largest Illegal Bitcoin Mining Farm to Date, Argentina and El Salvador Discuss Bitcoin
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Paraguay shut down the largest illegal bitcoin mining operation to date, Argentine and Salvadoran officials met to discuss bitcoin issues, and Ocean launched a global hub in El Salvador. Paraguayan Authorities Shut Down […]
Bitcoin News
UK Shuts Down Crypto Advisory Firm for Misleading Investors and Poor Financial Records
The UK government announced this week that the Insolvency Service has secured a winding-up order against cryptocurrency advisory firm Amey Finance Academy Ltd at the High Court. The company, created by Desmond Amey in 2018, claimed to offer investment advice and financial education. However, complaints emerged that consumers lost money, and the Financial Conduct Authority […]
Bitcoin News
Crypto Exchange Okx Shuts Down Services in India Due to Regulations — Advises Users to Withdraw All Funds
Cryptocurrency exchange Okx has notified its users in India that the platform is shutting down services in the country “due to local regulations.” The exchange has advised users in India to “withdraw all funds” from their accounts by the end of April. The Indian government has not regulated crypto and the country’s finance minister recently […]
Bitcoin News
Vast Bank Withdraws From Cryptocurrency Sector, Shuts Down Mobile App
Vast Bank, the U.S. financial institution that once offered customers the unique ability to manage cryptocurrencies alongside traditional banking, is exiting the digital asset space and shutting down its crypto mobile app in response to a consent order from the Office of the Comptroller of the Currency (OCC).
Vast Bank Closes Cryptocurrency App, Exits Digital Asset Market Amid Regulatory Pressures
Vast Bank, headquartered in Oklahoma, United States, has announced its departure from the cryptocurrency market, coupled with the closure of its crypto mobile banking application. This decision, effective as of Jan. 31, marks a shift in the bank’s operational focus.
Introduced in 2021, Vast Bank’s mobile app, developed in collaboration with German software company SAP and crypto exchange Coinbase, allowed customers to buy, sell, and hold cryptocurrencies alongside their traditional checking accounts. This service positioned Vast Bank as the first U.S. bank to integrate cryptocurrency transactions into a conventional banking framework.
However, a recent statement on the bank’s website reveals a strategic reorientation:
To strategically align our operations, effective Wednesday, January 31st, 2024, we will be disabling and removing the Vast Crypto Mobile Banking application from Google and Apple, which means your Vast Crypto Mobile Banking account(s), including any Digital Assets held in custody, will be liquidated and closed.
This closure comes in the wake of a consent order issued by the OCC in October 2023, which cited the bank for engaging in “unsafe or unsound practices.” These practices ranged from concerns over capital ratios and strategic planning to deficiencies in project management, liquidity, and interest rate risk management, among others. The order necessitated Vast Bank to submit a revised capital and strategic plan and to establish a compliance committee to address these issues.
Tom Biolchini, Vast Bank’s Chief Executive, reflected on the decision to exit the crypto market as a “strategic decision,” citing the need to distinguish the bank’s cryptocurrency initiatives from its core community banking services. This move aligns with the bank’s response to regulatory pressures and the desire to mitigate risks associated with digital asset custody and trading.
Customers affected by the app’s shutdown have been instructed that they cannot transfer cryptocurrencies to other wallets or platforms. Instead, they must liquidate their digital assets within the app and withdraw the USD funds. For those with accounts already closed, Vast Bank has committed to issuing cashier’s checks mailed to the addresses on file. Additionally, the bank assures ongoing support for obtaining account statements and other documents post-account closure.
Does this move by Vast Bank represent the broader banking industry’s reluctance to deal with cryptocurrency and digital asset services? Share your thoughts and opinions about this subject in the comments section below.
Conflux Protocol Shuts Down This Key Feature After 2 Years
After over two years of operation and maintenance by the Conflux Foundation, ShuttleFlow, a multi-asset bridge built on Conflux, is set to shut down.
Per the announcement, the platform was pivotal in driving progress within the decentralized finance (DeFi) arena, enabling “seamless” asset transfers across various chains.
Conflux Foundation Passes The Torch
ShuttleFlow emerged as one of the advanced multi-chain asset bridges in the DeFi space. Its architecture facilitated interoperability between different blockchains, opening up new user possibilities.
Notably, ShuttleFlow enabled “effortless swaps” between external blockchains such as Ethereum (ETH) and Binance (BNB), utilizing Conflux as the transit chain. With the decision to shut down ShuttleFlow, the Conflux Foundation has entrusted cryptocurrency hub company Zero Gravity with the responsibility of maintaining and further developing the technology stack.
According to Monday’s announcement, Zero Gravity will continue to enhance the Bridge’s capabilities to ensure a “seamless and secure” experience for users within the expanding multi-chain ecosystem.
Furthermore, the Conflux Foundation assures users that their funds are secure throughout the transition. All user funds will be migrated from ShuttleFlow to Zero Gravity, safeguarding their assets.
Users who have previously bridged assets through ShuttleFlow and successfully claimed them on the destination chain will not be required to undertake any additional actions for the migration.
ShuttleFlow will continue to assist users in claiming assets on the destination chain even after the bridging service is shut down. Users can locate their unclaimed assets on the ShuttleFlow history page.
ShuttleFlow Service Ends
The ShuttleFlow website and decentralized app (dApp) will continue to operate with limited functionality until January 6, 2024. However, the bridging service through ShuttleFlow’s dApp will cease on November 6, 2023. Once ShuttleFlow fully shuts down, users can bridge their assets through Zero Gravity’s official dApp.
The Conflux Foundation firmly believes that the decentralization and accumulation of infrastructure partners are crucial for the growth of its ecosystem. With Zero Gravity taking the reins, ShuttleFlow’s vision of enabling chain-agnostic asset flows to and from the Conflux Network will persist.
In light of these developments, the protocol’s token, CFX, currently ranked among the top 80 largest cryptocurrencies in the ecosystem, has experienced a retracement of over 2.9% in the past 24 hours, trading at ,1619.
Nevertheless, the token retains significant gains of 277% in the year-to-date period, demonstrating its remarkable growth over the past year.
Featured image from Shutterstock, chart from TradingView.com
Blockchain Company LBRY Shuts Down After Legal Battle With SEC
LBRY Inc., a cryptocurrency platform, announced its closure due to a court failure against the Securities and Exchange Commission (SEC). The SEC charged LBRY with making an unregistered securities offering by selling its native LBC tokens.
The fallout from this legal fight has prompted worries about unequal access to justice and regulatory overreach in the crypto business, which has disproportionately impacted smaller startups with minimal financial resources.
LBRY Inc. reported that the company was compelled to discontinue operations because of obligations owed to the SEC, legal team, and private creditors totaling several million dollars.
LBRY Inc. is winding down.
The LBRY network is unaffected.
Odysee and other assets will undergo a legal process to satisfy debts, but Odysee has a bright future ahead.
Thank you to everyone who fought with us for online freedom.
A final goodbye post is in the first reply.
— LBRY
(@LBRYcom) October 19, 2023
LBRY’s Financial Struggles
The SEC first sought a million penalties, which was later lowered to 1,614. This lowered fine was a major financial blow for LBRY, making it impossible for the company to continue operations.
The scenario exemplifies the difficulties that crypto businesses can face when they are pursued by regulatory agencies, particularly smaller startups with minimal financial resources.
The SEC has been accused of regulatory overreach in pursuing LBRY, with critics suggesting that the agency should focus on big issues in the crypto business rather than minor instances of securities noncompliance.
However, this case highlights the SEC’s ability to control the cryptocurrency market through enforcement proceedings.
Ripple’s Contrasting Legal Victory
The downfall of LBRY contrasts sharply with Ripple’s recent court success in its ongoing struggle with the SEC. Ripple acquired funding from a multibillion-dollar corporation, allowing it to continue its legal battle.
While LBRY Inc.’s controlled operations are ending, the LBRY blockchain, an open-source initiative, may continue to exist if sufficient user engagement is obtained. However, the business stated that decentralization may only succeed if active development and user participation are present.
With millions of registered users and a large volume of published material, the LBRY blockchain acted as a decentralized file-sharing network. Odysee, a decentralized social networking platform built on the LBRY blockchain, has a substantial user base. However, its future is now in doubt.
In a broader sense, the legal disputes in the crypto business are altering the securities law landscape. Both LBRY and Ripple have been accused with selling unregistered securities, but their outcomes have set developing precedents.
These results have prompted concerns about the SEC’s capacity to win legal battles against other crypto businesses.
As LBRY succumbs to regulatory pressure, it represents the obstacles encountered by smaller crypto businesses, as well as the broader issue of unequal access to justice in the cryptocurrency industry’s growing regulatory context.
Featured image from Conseils Crypto
KuCoin Shuts Down Bitcoin And Litecoin Mining Pools Amid Market Turmoil
KuCoin, one of the world’s largest cryptocurrency exchanges, has temporarily halted its KuCoin Pool service, effective August 15, 2023, until further notice. The move is part of KuCoin’s business strategy and aims to ensure the security and integrity of users’ assets.
KuCoin Urges Users To Backup Mining Records
During the suspension, users will retain complete access and control over their assets, and all other KuCoin offerings will remain operational as usual.
However, users who are involved in cryptocurrency mining are advised to transition their Bitcoin (BTC) and Litecoin (LTC) miners to alternative mining pools before the deadline to ensure uninterrupted earnings.
KuCoin has also advised users to back up and preserve their mining records and associated data before August 27, 2023, as failure to migrate to alternative mining pools within the specified timeline could affect their mining revenue.
Nevertheless, KuCoin Pool will not be held accountable for any potential earnings lapses resulting from users’ failure to migrate to alternative pools.
The temporary suspension of KuCoin’s mining pools may cause some disruption in the crypto market, as mining plays an important role in the ecosystem. Despite this, it is worth noting that KuCoin is just one exchange, and its suspension may not have a significant impact on the overall market.
KuCoin has assured its users that the suspension is temporary, and the company is working on a new strategy for its mining pool service. The company has also emphasized that the security and integrity of users’ assets remain its top priority, and it will take all necessary steps to ensure the safety of users’ funds.
Litecoin Halving Triggers Price Drop
Litecoin, one of the oldest and most popular cryptocurrencies, has completed its third block reward halving at a block height of 2,520,000, as reported by Colin Wu. The halving event has cut the mining reward in half, from 12.5 LTC to 6.25 LTC, as part of the cryptocurrency’s deflationary monetary policy.
The halving is a regular event that occurs approximately every four years and is designed to control the rate at which new coins are minted. By reducing the reward for mining new blocks, the halving helps to prevent inflation and maintain the scarcity of the cryptocurrency.
The current price of Litecoin is .12, which represents a 3.8% decline over the past 24 hours and a 10% decline over the past six months. The price drop may be related to market uncertainty surrounding the halving event, as well as broader market conditions.
Despite the short-term price decline, many analysts remain optimistic about the long-term prospects for Litecoin and the cryptocurrency market as a whole. The halving event is seen as a positive development that highlights the ongoing maturation of the industry and the growing recognition of cryptocurrencies as a legitimate asset class.
Litecoin has a strong community and a dedicated development team, which continue to work on improving the technology and expanding the use cases for the cryptocurrency.
The halving event is expected to further strengthen Litecoin’s position as a leading cryptocurrency and contribute to its long-term growth and success.
Overall, the completion of Litecoin’s third block reward halving is a significant milestone for the cryptocurrency and the broader industry.
While short-term price volatility is to be expected, the long-term outlook for Litecoin and cryptocurrencies, in general, remains positive, with many experts predicting continued growth and adoption in the years to come.
Featured image from Unsplash, chart from TradingView.com
Crypto Payments Firm Wyre Shuts Down — Users Told to Remove Assets From Platform
Wyre, the San Francisco-based crypto payments firm, has said it is winding down operations “in order to protect the best interests” of its users and stakeholders. The firm urged users with assets on its platform “to continue to withdraw them via Wyre’s dashboard until Friday, July 14th.” A statement released by the firm said parties interested in acquiring Wyre or its subsidiaries should contact 88 Partners via email.
No Pressure From Regulatory Agencies
United States-based crypto payments firm Wyre said on June 16 that it is winding down operations. According to a statement, Wrye’s decision to shut down was made in order to “protect the best interests” of its stakeholders and customers. The payments firm insisted that the move was not forced on Wyre by some regulatory agency.
The firm’s decision to wind down comes more than six months after the CEO Ioannis Giannaros denied reports the payments platform had shut down. At the time, Giannaros instead claimed that Wyre was scaling back.
Users Urged to Remove Assets From Platform
However, in the statement announcing the payment platform’s shutdown, Wyre cited market conditions as one of the reasons why it was winding down. The statement also informed users of the next steps they should take.
“If you have assets on the Wyre platform, you can continue to withdraw them via Wyre’s dashboard until Friday, July 14th. After then, we will have a separate process to recover assets remaining on the platform. We will post details on the process on our website and blog. We will share more information over the coming weeks,” the payments service provider said.
Wrye also instructed individuals or companies interested in acquiring the crypto payments firm or any of its subsidiaries to contact 88 Partners via email.
As reported by Bitcoin.com News in Sept. 2022, Wyre’s woes seemingly started after the U.S. tech company Bolt abruptly pulled out of a deal to acquire the San Francisco-based crypto payments service provider for .5 billion. This was followed by reports in early January which stated that Wyre had modified its withdrawal policy in response to deteriorating market conditions.
What are your thoughts on this story? Let us know what you think in the comments section below.
Iran Shuts Down Over 8,000 Illegal Crypto Mining Farms in 3 Years
Authorities in Iran have closed down more than 8,000 underground facilities for cryptocurrency mining in the past three years, local media reported. Despite the government’s crackdown, illegal crypto mining continues to account for a serious amount of energy consumption, official figures suggest.
Illegal Crypto Miners in Iran Steal 1.8 Billion kWh of Electricity, Official Says
Enterprises minting digital currencies outside the law in Iran have stolen 1.8 billion kilowatt hours (KWh) of electricity, according to a spokesperson for the electric power industry, quoted by the English-language Iranian daily Financial Tribune and the Bargh News portal.
“About 8,200 unauthorized centers for cryptocurrency mining have been identified and closed in the past three years, in which more than 246,000 active miners were using 680 megawatts (MW) of energy,” said Mostafa Rajabi-Mashhadi. It’s estimated that another 1,200 MW of power capacity is still being occupied by illegal miners in the country, he added.
Most of the electricity theft occurred in the provinces of Isfahan and Tehran, followed by Khorasan Razavi, Khuzestan, Markazi, Fars, and East Azerbaijan. By cracking down on illegal mining activities, the government wants to support the operations of licensed miners, the reports noted.
In July of 2022, the Iran Power Generation, Transmission, and Distribution Company (Tavanir) vowed to take severe measures against unlicensed crypto miners. By the end of 2022, the utility had found and closed down 7,200 unauthorized mining farms.
Iran legalized bitcoin mining in 2019 but has since halted legal operations on several occasions, citing power shortages during the summer and winter months, when electricity consumption usually spikes. That’s despite registered mining facilities paying at higher electricity rates than other industries in the Islamic Republic.
The Iranian Ministry of Energy requires owners of crypto mining hardware to report the location of their devices in the Comprehensive Trade System of the Ministry of Industries, Mining and Trade, which issues the licenses. Failure to do so would result in hefty fines.
The latest data about the size of the ‘gray’ crypto mining sector has been released after the news earlier this week that the operator of the Tehran Stock Exchange has been fined for illegally owning and running 82 crypto mining rigs.
The machines were found and confiscated by the Economic Security Police of the Islamic Republic. Ali Sahraei, the chief executive of the exchange, resigned following their discovery in the organization’s basement in late 2021.
Do you think Iranians will continue to mine crypto underground, using subsidized electricity? Share your thoughts on the subject in the comments section below.