Binance is a cryptocurrency exchange that is the largest in the world in terms of daily cryptocurrency trading volume. It was formed in 2017. Its headquarter is in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who previously built high frequency trading software. Binance was founded in China but relocated its headquarters soon before the Chinese government put limits on cryptocurrency trading.
Binance was investigated for money laundering and tax evasion by the US Department of Justice and the Internal Revenue Service in 2021. The UK’s Financial Conduct Authority ordered Binance to discontinue all regulated activities in the UK by June 2021. Binance provided Russian authorities with client information, including names and addresses, in 2021.
Binance Suspends Terra Classic ($LUNC) Trading, LUNC Price Drops
Binance, the world’s largest cryptocurrency exchange, has temporarily halted the burning of Terra Classic (LUNC) transaction fees until March 2023. The move follows the discussions around Proposals 10983 and 11111 to support the commodities pool. Furthermore, instead of 100%, the crypto exchange will burn 50% of LUNC spot and margin trading costs.
Binance Makes Terra Classic (LUNC) Burning Changes
Cryptocurrency exchange Binance announced on December 28 that it is changing its LUNC burn process to continue to help the Terra Classic community in limiting the LUNC token supply. Thus, Binance will burn 50% of the LUNC spot and margin trading fees instead of 100% with effect from December 28. Binance claims the decision follows recent developments linked to Proposals 10983 and 11111, in which LUNC burn is re-minted as a development fund.
Furthermore, until March 1,2023, the crypto exchange will postpone delivering Terra Classic (LUNC) trade fees to the burn address. It will restrict the re-issuance of LUNC trading fees unless the community approves crucial measures. Furthermore, Binance is in talks with the Terra Grants Foundation, lead by Terra Classic core developer Edward Kim, to implement the necessary adjustments.
It entails generating a new burn wallet to prevent LUNC token re-minting and whitelisting Binance’s wallets to avoid tax when transferring between these wallets. Binance has stated that if the community does not make these modifications, the crypto exchange may discontinue the burn mechanism.
Terra Rebels was blamed by Validator LUNC DAO for entirely breaking its partnership with Binance. He proposes that the LUNC community meet the requirements in order to keep Binance’s support. The community voted to cancel Proposal 10983, which would have restored 10% remint from the 0.2% burn tax and added it to the communal pool instead of 50% remint.
What are Binance’s demands?
The exchange is in contact with the Terra Grants Foundation team in order to make certain improvements. Binance has requested the construction of a new burn wallet, according to the announcement.
The exchange will transmit the LUNC spot and margin trading costs to the new wallet, which will not enable the burn amount to be re-minted. The company has also requested that its wallets be whitelisted. It is done to avoid paying the transaction tax while transferring funds between these wallets.
Binance has halted delivering LUNC trading fee burn donations till March 1st. This will provide the project enough time to make the required improvements. However, if the adjustments are not implemented within the time limit specified, the exchange “will consider withholding the burn contribution in the future.”
The price of LUNC has fallen by 12% in the last 24 hours. It is crucial to note, however, that the asset has recovered 47% since December 22nd. LUNC was trading at $0.00016568 at press time, up 1% in the previous hour.
The action is intended to give Celsius account holders more time to file prospective proofs of claim. Celsius, the insolvent cryptocurrency lender, will file a petition asking for another month to extend the deadline for customers to submit claims in the ongoing bankruptcy proceedings.
Celsius Network, the embattled cryptocurrency lender, seeks to submit a petition that would offer consumers another month to make claims. The cryptocurrency community has become impatient as they watch Celsius’ legal bills continue to increase and deplete the lender’s fortune.
Celsius said on December 29 through Twitter that it will consider extending the current claim deadline from January 3 to early February. According to the crypto lender, the deadline of January 3 will be extended at least until then since the bankruptcy court is set to hear the request on January 10.
Creditors who believe they are entitled to payment during bankruptcy proceedings may make claims through the claims process. Celsius creditors have submitted around 17,200 claims as of December 29th.”Celsius is preparing to file a motion later this week seeking an extension of the bar date, from January 3, 2023 until early February,” the firm said late Wednesday.
According to the corporation, the delay is required “to provide account holders more time to file any proof of claim.” The application will be considered by the bankruptcy court on January 10, 2023, with the existing claims deadline set for the same date, according to the firm. According to Stretto, the firm’s claims agent, Celsius’ creditors who feel they are entitled to a refund have filed almost 17,200 claims as of today.
Celsius’ legal expenses are increasing.
Earlier this month, the bankruptcy court in charge of the Celsius case ordered the bankrupt crypto lender to restore around $44 million in cryptocurrency to clients of Celsius’ Custody and Withhold accounts.
These accounts basically served as cryptocurrency wallets, with no access to the firm’s interest-bearing lending business. After it was recently revealed that lawyers and other advisers in the Celsius case had also been seeking nearly $53 million in legal fees for their services in just four months since the firm filed for bankruptcy, a possible extension of the deadline for Celsius’ customers to submit their claims is likely to enrage many of the firm’s customers.
Kirkland & Ellis, which represents the unsecured creditors’ committee, billed over $20 million for its services from July to October, followed by White & Case LLP, which billed $10.2 million. Alvarez & Marsal North America LLC and M3 Advisory Partners LLP, who claimed $6.5 million and $4 million, respectively, for their efforts in the Celsius case, were also significant advisors.
Lawyer bills for Celsius continue to mount.
Despite the fact that Celsius’ administrative costs have risen since its original bankruptcy filing in July, creditors appear impatient. According to a December 27 Financial Times story, the costs charged by bankers, attorneys, and other consultants in the bankruptcy proceedings had already exceeded $53 million.
For example, a fee statement dated December 15 from one of the legal firms representing the business, Kirkland & Ellis, requested more than $9 million in payment for services provided in September and October. In comparison, Celsius has only put up $44 million for client reimbursements so far. This money, which accounts for a minuscule percentage of the crypto lender’s $4.72 billion in client deposits, belongs to customers who have only ever retained monies in the Custody Program.
Futures Exchange (FTX): definition and connotation
FTX Trading Ltd., or FTX, is a bankrupt firm that operated a cryptocurrency exchange and hedge fund in the past. The exchange was founded in 2019 and had over one million clients at its peak in July 2021, ranking it third in terms of volume. FTX was founded in Antigua & Barbuda and has its headquarters in the Bahamas. FTX is closely related to FTX.US, a separate exchange for US citizens. FTX has been in Chapter 11 bankruptcy proceedings in the US court system since November 11, 2022.
Concerns were raised after a CoinDesk report published in November 2022 said that FTX’s partner business Alameda Research owned a considerable chunk of its assets in FTX’s native coin (FTT). Following this discovery, rival exchange Binance’s CEO Changpeng Zhao said that Binance will liquidate its token holdings, prompting a surge in client withdrawals from FTX.
FTX was unable to satisfy consumer withdrawal requests. Binance signed a letter of intent to buy the business, with due diligence to follow, to guarantee that clients’ cash could be recovered from FTX in a timely way, but Binance retracted its offer the next day, citing claims of mismanaged customer funds and US government investigations. On December 12,2022, founder Sam Bankman-Fried was detained for financial crimes by Bahamian authorities at the behest of the US government.
John J. Ray III, the current CEO of FTX, specializes in recovering cash from bankrupt firms. Ray stated that he had never witnessed such a catastrophic failure of business controls and such a complete lack of trustworthy financial information as occurred here.
Customers of FTX launch a class action lawsuit to have their payments prioritized.
Four FTX clients have launched a class action lawsuit seeking priority recovery for $2 billion in unpaid consumer payments. The claim was filed in the United States Bankruptcy Court for the District of Delaware, where FTX is now in bankruptcy proceedings. Retail customers who experienced financial losses as a result of FTX and sister business Alameda Research’s bankruptcy filing “should not have to stand in line” with other creditors waiting for cash recovery, according to the complaint.
Former Alameda Research CEO Caroline Ellison told investigators that customer cash at FTX was misused to bridge financial deficiencies in the closely related investment firm Alameda Research. The illicit FTX transfers to Alameda, according to the plaintiffs, were in flagrant violation of FTX’s own customer agreements and terms of service, as well as common law and basic principles of honesty and fair dealing. In mid-December, a committee of unsecured creditors was constituted for over 100 businesses that had invested in the defunct exchange and its related activities but had no security for what FTX owed them.
According to the court petition, “cash and assets traceable to consumers that were never owned by FTX or Alameda and do not belong to the estates should be put aside entirely for the customers,” and Wronged clients should be given top priority over any additional monies owed or is recovered by [the group of related debtors]. Sam Bankman-Fried, co-founder of FTX and Alameda, is facing a slew of fraud charges that may land him in prison for up to 115 years. Earlier last month, Ellison and FTX co-founder Gary Wang pled guilty to criminal and civil charges, adding to Bankman’s already significant legal weight.
Binance is a cryptocurrency exchange that is the largest in the world in terms of daily cryptocurrency trading volume. It was founded in 2017. It’s headquarters is in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who previously built high frequency trading software. Binance was created in China, but it quickly shifted its headquarters before the Chinese government imposed restrictions on cryptocurrency trading.
Binance was investigated for money laundering and tax evasion by the US Department of Justice and the Internal Revenue Service in 2021. In June, the UK’s Financial Conduct Authority ordered Binance to cease all regulated business in the country. Binance supplied client information, including names and addresses, with the Russian authorities in 2021.
Binance coin (BNB)
Binance has released two cryptocurrencies that it created: Binance Coin (BNB) and BinanceUSD (BUSD). BNB debuted in July 2017 as an Ethereum currency before transitioning to the Binance Smart Chain (BSC) in September 2020. BSC was eventually combined with the older Binance Chain and re-launched as the BNB chain. BNB Chain employs “Proof of Staked Authority,” a hybrid of proof of stake and proof of authority. It has 21 validators who have been approved. Binance Coin was the cryptocurrency with the third greatest market capitalization as of 2021. Binance allows its users to pay fees for BNB exchanges.
BSC works with the Ethereum virtual computer and supports smart contracts (EVM). There have been several concerns about Binance Smart Chain’s level of centralization, which has resulted in several network vulnerabilities.
Even if all users begin withdrawals, Binance will not go bankrupt: CZ
Changpeng Zhao, the CEO of Binance, concurred with the rest of the crypto-verse that the exchange had a difficult year. The market was thrown into disarray earlier this month as a result of the massive withdrawal streak. Despite assurances to the community concerning the exchange’s reserves and stability, CZ got a similar query yet again.
CZ was questioned during a recent AMA session, “If Binance users withdraw their cash at the same time, would it collapse/go bankrupt? In a nutshell, no,” said the CEO of the world’s largest bitcoin exchange. “We have more than 100 percent reserves on every currency that we hold on behalf of our users,” CZ stated, explaining how the exchange will be fully OK. So feel free to go at any moment.”
As previously stated, Binance saw a rise in withdrawals from December 12 to December 14. During this time, the exchange lost a total of $6 billion. The key cause, according to reports, was speculation over the exchange’s reserves. However, like CZ, a spokesman for Binance confirmed that user assets are backed by 1:1.
Furthermore, as seen in the accompanying data, Bitcoin outflows rose in November and December 2022. However, if Binance is forced to close, money in the Trust Wallet would be protected, according to CZ.
‘Never touch user funds,’ CZ advises his colleagues.
The FTX crisis and its subsequent ripple effect created market uncertainty. The cryptocurrency community was eager to see how Binance would handle this situation. CZ emphasized the importance of staying out of such a circumstance in the first place.
Nonetheless, CZ emphasized the need of being “transparent, open, and communicative” when handling billions of dollars in customer cash. He said that there are a few standards in business to never breach those includes never handle user monies. Keep them safe, separate, and run a healthy and sustainable company. Take no shortcuts.
CZ elaborated on the upcoming year, stating that 2022 will be a terrible year. As a result, he hopes that beneficial occurrences occur during 2023. More builders and developers will be needed to create user-friendly systems for ordinary people.
Defrost Finance’s current price was $0.001623 USD, with a 24-hour trading volume of $3,398.69 USD. Our MELT to USD pricing is updated in real time. In the last 24 hours, Defrost Finance has dropped 40.32%. CoinMarketCap currently ranks #5106, with a live market cap of not available. There is no circulating supply and a maximum supply of 100,000,000 MELT coins. If you’re wondering where to purchase Defrost Finance at the moment, the main cryptocurrency exchanges for buying Defrost Finance shares are now Hotbit, TraderJoe, and Elk Finance (Avalanche). Others are included on our cryptocurrency exchanges page.
Defrost Finance is a decentralised system that allows you to use yield-bearing Tokens or other pool tokens from Avalanche and cross-chain protocols as collateral to generate H2O, a USD-pegged cryptocurrency. Defrost Finance assists customers in increasing capital efficiency from assets held in pools or vaults. It enables customers to supply liquidity in order to obtain more yields from services such as farming, borrowing, staking, swap, and bridge support for trading convenience.
Finance Must Be Defrosted
Decentralized-finance protocol has been hacked Defrost Finance reported it was hacked on Friday, however blockchain security firm PeckShield said the attack may have been a rug pull that stole $12 million, citing “community intel,” while Certik, another security firm, said it had been unable to contact members of the team. The Defrost team stated in a Sunday Twitter thread that the first assault utilized a flash loan to syphon cash from its V2 product.
A broader assault exploited V1 using the owner key. The amount taken was not specified in the protocol, which permits leveraged trading on the Avalanche blockchain. According to Peck Shields’ study, the attacker employed a bogus collateral token in conjunction with manipulated pricing. A rug pull, also known as an exit scam, occurs when developers build and construct a liquidity pool, then withdraw the cash and leave after investors have purchased the corresponding token.
According to Defi Llama data, the overall value of money frozen on Defrost Finance has plummeted from $95 million in February to roughly $13 million in recent weeks. It was less than $93,000 on Sunday. On Sunday, it was less than $93,000. It is unusual for an attack to be a rug pull. Typically, the scheme’s crew falls silent and cannot be reached. Defrost Finance, on the other hand, publicized the assault and stated in a tweet that it is prepared to engage with the perpetrators for the restoration of the monies.
Nonetheless, an attempt to contact the corporation via Twitter was futile because direct messages were not permitted on the account. Certik tweeted on Monday that it has attempted to “call numerous members of the team but have received no answer.” According to an accompanying graphic, it validated DeFrost as an escape fraud. DeFiYield, which provides a security layer for smart contracts to help investors avoid being scammed or hacked, said it audited Defrost Finance a year ago and identified the smart contract weakness that was used in the breach.
According to Chainalysis, crypto investors lost more than $2.8 billion due to rug pulls last year. Rug pulls contributed for 37% of the overall illegal money from crypto frauds that year, which was approximately $7.7 billion. The figure for 2022 is anticipated to be higher: According to a research from blockchain risk-monitoring firm Solidus Labs, scammers deployed over 117,000 scam tokens until December 1, 41% more than in all of 2021.