Category: Crypto Exchange

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Crypto Exchange Crypto News

CoinFlex Files for Restructuring Amid Alleged ‘Bitcoin Jesus’ Default

Coinflex has filed for restructuring in a Seychelles court, according to a report from Bloomberg:

Coinflex is a derivatives exchange that has been struggling to recover a monumental loss – said to be at least US$84 million – after a counterparty failed to meet a margin call.

The exchange is looking for approval from depositors and the court to issue depositors with rvUSD tokens, equity, and a locked version of the exchange’s native token FLEX coin. Additionally, the firm plans to launch “Locked Balances Markets”, which will be traded against unlocked balances on the platform.

Coinflex on the Edge

In June, the exchange halted user withdrawals due to market conditions, only to resume services in July – the same month it laid off over 50 percent of its staff.

Problems had been brewing since late June when the CEO of Coinflex, Mark Lamb, said Roger Ver – the counterparty in question – owed the exchange US$47 million in USDC:

Coinflex stated it would communicate with its customers as the process continues. Its founders will presumably host a video AMA next week to answer users’ inquiries and doubts.

Bad News Follows Bad

Of course, news of crypto exchanges halting services and preventing users from accessing their accounts no longer comes as a surprise in the ongoing bear market:

Of that list, Celsius has since declared bankruptcy while Zipmex this week announced it would allow partial withdrawals of bitcoin and ethereum.

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Crypto Exchange Crypto News

Hotbit Exchange Suspends All Services Due to Ongoing Criminal Investigation

The old crypto adage “not your keys, not your coins” is relevant once again this week after popular crypto exchange Hotbit halted trading, deposits and withdrawals amid an ongoing criminal investigation concerning a former manager of the company.

In an August 10 blog post, the company announced that law enforcement had frozen “some funds of Hotbit” and thus it is unable to determine how long it will take to resume operations:

However, Hotbit didn’t disclose exactly which jurisdiction was investigating the exchange’s former employee:

A former Hotbit management employee who left Hotbit in April this year was involved in a project last year (which was against Hotbit’s internal principles and of which Hotbit was unknown) that law enforcement authorities now think is suspected of violating criminal laws.

Hotbit blog post

Compensation Plan in the Works

Hotbit stated that users’ unfilled open orders would be cancelled until the exchange resumes operations, and that leveraged ETF positions would be “forcibly liquidated to prevent further losses”.

On a side note, the exchange said it would come up with a compensation plan that will be published when “the website is resumed”.

The crypto bear market has not only drawn down cryptocurrency prices but caused a lot of institutional meltdowns in the industry. Hotbit is just the latest crypto firm to prevent users from accessing their funds.

Last month, Zipmex halted user withdrawals citing “circumstances beyond our control”, while another Singapore-based exchange, Hodlnaut, followed suit citing “market conditions”.

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Celsius Crypto Exchange Crypto News

Celsius Drama Continues as CEO Cashes Out During Recent Short Squeeze

The CEO of bankrupt cryptocurrency lender Celsius has allegedly sold large amounts of the project’s native CEL token during the recent surge. The token’s value shot up almost twofold in the past week in what appears to be a community-driven short squeeze.

First Transaction in Late May

Blockchain data shows a cryptocurrency address identified by intelligence firms Arkham Intelligence and Nansen, as CEO Alex Mashinsky made an initial transaction in late May. According to data from Etherscan, the wallet sold CEL tokens in multiple transactions on August 6 and 9, swapping 17,575 CEL tokens for US$28,242 worth of Ether on the decentralised exchange UniSwap.

The transactions were initially spotted by Twitter user ‘alto’:

Arkham Intelligence managed to identify a few of Mashinsky’s wallets that have regularly sold a large amount of the CEL token on numerous decentralised exchanges. Before it declared bankruptcy, the firm listed its largest owners on its webpage, with the CEO reportedly the largest token holder just after the Celsius treasury.

CEL Token Under SEC Scrutiny

Celsius filed for bankruptcy protection on July 13, only a month after freezing all customer withdrawals. The CEL token issued by the firm as a utility token is also facing regulatory scrutiny from the US Securities and Exchange Commission (SEC) for not being registered as a security.

At its peak in October 2021, the crypto lender had US$25 billion in assets under management, according to Mashinsky, but now Celsius is down to US$167 million “in cash on hand” which it says will provide it with ample liquidity to support operations during its restructuring process.

This is little consolation to investors, as under the terms of its bankruptcy filing Celsius owes its users somewhere around US$4.7 billion. Amid its turmoil, Celsius has also had to withdraw its motion to bring back ex-chief financial officer Rod Bolger on a US$92,000 per month salary. Bolger was set to return to the firm as a consultant to help during the bankruptcy proceedings.

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Crypto Exchange Crypto News Crypto Wallets Zipmex

Zipmex Announces Plans to Release a ‘Specific Amount’ of ETH and BTC

Embattled Asia Pacific exchange Zipmex has announced it will enable its Z Wallet customers to partially withdraw some of their Bitcoin and Ether holdings.

After details of its liquidity crisis emerged last month, Zipmex has named August 11 and 16 as respective dates for releasing “a specific amount” of ether and bitcoin.

Crypto Twitter Questions Zipmex Wording

Predictably, Crypto Twitter was quick to query the vagueness of the Zipmex announcement:

Restructure a Work in Progress

On July 20, Zipmex halted withdrawals from the platform, citing exposure to Babel Finance and Celsius. Following a restructuring plan, the exchange has been working with customers and regulators to ensure funds are returned. Last week, it announced withdrawals for altcoins including Solana (SOL), Cardano (ADA) and Ripple (XRP).

Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits.

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Celsius Crypto Exchange Crypto News

Singapore-Based Exchange ‘Hodlnaut’ Halts Withdrawals Citing Market Conditions

This year has thus far offered one compelling case after another on the importance of “not your keys, not your coins”. The latest episode in the crypto lending meltdown is Singapore-based firm Hodlnaut, which yesterday announced it was halting withdrawals:

Crypto Lending Market Uncertainty Continues

According to the announcement, the firm has frozen withdrawals, deposits and token swaps due to “difficult market conditions”. When asked about whether it was exposed to the collapse of Celsius and Three Arrows Capital, it referred to an earlier Twitter thread claiming it wasn’t:

While the company indicated it would provide users with an update by August 19, the official announcement offered little in the way of details as to how the liquidation crunch arose, saying only that its focus was on “stabilising our [its] liquidity and preserving assets”. It isn’t clear at this stage how much is at risk, although Hodlnaut claims to have US$500 million of assets under management.

Some Users Saved by Twitter Detective

Even though the rallying cry of 2022 has been to remove all coins from exchanges into self-custody, many have continued to rely on third parties for custodial services. Of course, it goes without saying that not all custodians are created equally, and that users need to do their due diligence to weigh up the relative risks and benefits of leaving coins on exchanges.

One Twitter user who became famous for calling out the Terra ecosystem implosion specifically called out Hodlnaut for its “CeFi degeneracy” in June:

The Twitter thread provides a revealing take on the mechanics of the inherent risks of earning yield on one’s crypto, and unfortunately for the majority of users they are unlikely to have either come across or heeded FatMan’s timely warning. Fortunately for others, they managed to withdraw their investments in time:

Since the announcement, the company’s co-founder has gone offline, with many users viewing this as the ultimate clear signal that they should probably manage their expectations in terms of receiving any of their funds back:

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Crypto Exchange Hackers Security

‘World’s Most Secure Exchange’ ZB.com Hacked for $5 Million

Formerly China-based ZB.com, which touts itself as the world’s most secure digital asset exchange, has had US$4.8 million pilfered from its hot wallet in a suspected hack:

Blockchain security firm PeckShield disclosed the suspected hack on August 3, identifying that large volumes of more than 20 different digital assets had been transferred out of the exchange’s hot wallet to another address. Most of the transferred assets have since been sold for ETH.

In response to the incident, ZB.com suspended customer withdrawals for what it describes as “temporary maintenance”, explaining in a statement:

Due to the sudden failure of some core applications, it still takes time to troubleshoot the problem. Deposit and withdrawal services are now suspended. Please do not deposit any digital currency before recovery. 

ZB.com statement

Wide Range of Digital Assets Taken

Among the 21 digital assets stolen in this suspected hack were over US$800,000 in Tether (USDT), almost US$300,000 in MATIC and over US$200,000 in IMX.

After being funnelled out of ZB.com’s hot wallet, the majority of the funds were subsequently sent to a number of decentralised exchanges by the hacker and sold for 2,224 ETH, currently valued at US$3.6 million. Another wallet PeckShield believes is also controlled by the hacker still holds just over US$1 million worth of stolen assets, which haven’t yet been sold.

Exchange Has Long History in Crypto

ZB.com is one of the oldest crypto exchanges currently operating, having been founded in China as CHBTC.com in 2013. Following China’s crackdown on crypto in 2017, the exchange ceased its activities inside China, rebranded as ZB.com and moved its headquarters to Switzerland. 

Despite this recent hack, ZB.com continues to flaunt its supposed status as the world’s most secure crypto exchange on its Twitter bio:

In the past year, exchange hacks have become increasingly frequent. In December 2021, US-based exchange BitMart was hacked for almost US$200 million, and in January Liechtenstein-based exchange LCX had one of its hot wallets hacked, losing almost US$8 million.

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Australia Crypto Exchange Crypto News Huobi Regulation

Huobi Global Exchange Gets Green Light to Operate in Australia

Former China-based crypto exchange Huobi Global is free to offer its services Down Under after successfully registering as a digital currency exchange provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC):

Global Expansion Plan Moves Ahead

After also obtaining licences in New Zealand and the United Arab Emirates in June, Huobi is now eyeing a move into the US market. An American subsidiary, HBIT, was established last month and Huobi has already received a Money Services Business licence with the intention to launch full exchange services in the US down the line.

Following China’s most recent crypto crackdown in late 2021, Huobi was forced to relocate to Gibraltar. The company has since opened offices in Japan and South Korea, though it has struggled to obtain a foothold in Thailand, having to shut down after failing to comply with Thai Securities and Exchange Commission regulations.

Last month, Huobi was given permission to operate in Dubai. The Hong Kong Securities and Futures Commission also granted the exchange a trading licence two weeks ago.

Huobi Starts With OTC Services in Australia

In Australia, Huobi will initially offer fiat to cryptocurrency trading. Lily Zhang, the company’s chief financial officer, stated that the local office would concentrate on OTC services:

We have always made security and compliance our highest priorities, as we believe that only under this principle can we grow alongside the industry to provide professional and secure services to our users.

Lily Zhang, CFO, Huobi Global

Since it was founded in 2013, Huobi has been delivering digital asset services to more than a million customers worldwide. That number is set to expand exponentially should the US open its doors.

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Crypto Exchange Trading

What is the Best Cryptocurrency Trading Platform?

Update: Please see our article on the best crypto exchanges in Australia for reviews and up-to-date information.

What is the Best Cryptocurrency Trading Platform?

Cryptocurrency trading platforms are essentially websites where you can buy, sell or exchange cryptocurrencies for other digital currencies or traditional currencies. Trading cryptocurrency has become very well-known activity over the last year with your average mum and dad investor jumping on the trading Bitcoin wagon. There are many beginners that are joining the crypto world every day and while some of them could be joining for an investment opportunity, some may be in it for the technology. So, if you are looking to start trading cryptocurrencies, here is some more information about the best trading platforms.

“A cryptocurrency exchange or a digital currency exchange (DCE) is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. A cryptocurrency exchange can be a market maker that typically takes the bid-ask spreads as a transaction commission for is service or, as a matching platform, simply charges fees.” – Source: Wikipedia (wikipedia.org/wiki/Cryptocurrency_exchange)

Binance

Binance offers one of the largest cryptocurrency exchanges in the world in terms of trading volume. They support AUD deposits and withdrawals for personal accounts which are Instant and have no fees through PayID/Osko. Binance is trusted by many investors and is used by millions of customers globally. Among the features of this platform are that it makes it easy to securely purchase, use, store, and trade digital currency. You can store your Bitcoins and Cryptocurrencies through a digital wallet that is available on IOS and Android.

Coinbase

Coinbase is a worldwide exchange where you can trade with other users by using the company’s Global Digital Asset Exchange (Coinbase Pro) subsidiary. Coinbase Pro currently functions in the UK, US, Canada, Australia, Singapore, and Europe. There are no transfer fees when you move funds from your Coinbase account to your Coinbase Pro account. The main benefits of having Coinbase is that it has a great reputation, high security, affordable fees, is beginner friendly, and the stored currency is covered by Coinbase insurance. On the other hand, the disadvantages of the platform are limited payment methods and limited countries supported.

Kraken

The trading platform Kraken was founded in 2011 and is the biggest Bitcoin exchange in euro volume and liquidity. Kraken is also a partner of the first cryptocurrency bank. This trading platform will enable you to buy and sell Bitcoins and trade between cryptocurrencies and selected traditional currencies. You can also trade with other digital currencies such as Monero, Ethereum, Litecoin, Zcash, Ripple, and more. Additionally, Kraken provides margin trading and a host of other trading features. Kraken trading platform is a great selection for more professional traders. The pros of the Kraken are that it has a great reputation, reasonable exchange rates, it’s seen to be secure, supported worldwide, has low transaction fees, and more. The cons are that it has limited payment options and is not friendly for beginners.

Coinsquare

Coinsquare trading platform is committed to safe and secure trades as you are trusting your money with them. They take this very seriously, so they have a 100% proprietary system. In addition to this, they have also been DDoS tested and they have not lost a single coin to date. Also, they keep a ledger to make sure they know where every coin is at all times. The advantages of using Coinsquare is that it has a fantastic reputation, it’s seen to be very secure, has affordable fees and is relatively beginner-friendly. The disadvantages of Coinsquare are that it has limited payment methods and limited countries supported.

ShapeShift

The trading platform ShapeShift is one of the leading platforms that supports a range of cryptocurrencies, including Bitcoin, Ethereum, Zcash, Monero, and many others. It’s a great option for people who want to make instant direct trades without having to sign up to an account or rely on a platform to hold their funds. However, ShapeShift does not enable users to buy cryptos with debit cards, credit cards or another form of payment system. ShapeShift has a no-fiat policy and will only allow exchange between Bitcoin and other supported cryptocurrencies. The pros of having this trading platform are that it has a great reputation, is suitable for beginners, and has many cryptos available for exchange, quick exchange, and affordable prices. The cons are that it has an average mobile app, no fiat policy, and limited payment options.

Read More on Crypto News Australia

The world of cryptocurrency is constantly changing. You can stay up to date with the latest Australian Crypto news here. Or, if you would like to learn more about digital currencies, then please visit our Guides section for more tips, advice, and information.

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Australia Crypto Exchange Trading

Top 10 Bitcoin Trading Sites in Australia

If you are new to the crypto world, you may be wondering what the best Bitcoin trading sites are in Australia. There have been an increasing number of cryptocurrency exchanges come online in recent years, but which ones are the best? In Australia, there are a variety of exchanges you could use but to help make your choice easier, here is a guide on what we think are the top 10 Bitcoin trading sites in Australia.

Before we begin, these trading sites are not a definitive list of all sites, and they are chosen based on determining factors such as site performance, security, fees, support, etc.

Must read >> Our article on The Best Crypto Exchanges for Australia, in which we go into greater detail on which exchanges might be suitable for trading bitcoin and other cryptocurrencies, deposit methods, and our top picks for beginners and advanced traders.

1. Swyftx

Swyftx is an Australian-based crypto exchange where you can buy, sell and trade 300+ crypto-assets. Swyftx is an AUSTRAC registered Australian cryptocurrency exchange and trading platform with tiny spreads, low fees and non-inflated market prices. Trade with stop losses, take profits and triggered orders on a mobile and desktop-ready modern web-based cryptocurrency exchange.

2. Binance Australia

Binance Australia is one of the most popular trading sites for Australia and worldwide. Residents of Australia are able to use the Binance website and mobile apps to trade Bitcoin with other cryptocurrencies. Many people use Binance for trading as it has a trusted reputation worldwide and low fees, high trading volume, and lots of crypto trading pairs.

3. CoinJar

CoinJar is a very well-known exchange in Australia and the reason it is so popular is due to the fact you can purchase Bitcoin via BPAY for a fee of just 1%; it’s PayID supported, Credit/Debit card supported, with 0% trading fees on CoinJar Exchange. People say that CoinJar is very easy to use as it has a clean interface, making it simpler for beginners. The platform has a good reputation and has been around for a long time (since 2013), so Aussie locals find it trustworthy. CoinJar supports AUD and GBP fiat currencies and supports up to 24 different cryptos.

4. Crypto.com

Crypto.com Exchange is provided by one of the world’s fastest-growing exchanges with over 10 million users worldwide. The exchange allows you to buy, sell and trade more than 100 cryptocurrencies via your web browser. The exchange is linked to the crypto.com mobile app so you can transfer coins from the app to the exchange for trading.

6. Zipmex

Zipmex is a regulated digital asset exchange in Australia offering high liquidity, low spreads, instant fiat deposits and withdrawals. Their platform has trading fees as low 0.2% per transaction and your digital wallet assets are also insured for up to US$100 million through BitGo.

6. Changelly

Changelly will allow you purchase Bitcoin; however, it will only let you buy it with Litecoin, Dogecoin, and other digital currencies. The benefits of using this service is that it is fast and easy to buy Bitcoins with Altcoins, also the fees are reasonable for bigger traders. The only disadvantage is that you need digital currency to purchase Bitcoins.

7. BuyaBitcoin

BuyaBitcoin is an Australian Bitcoin exchange, and you can use it to purchase Bitcoin. The pros of using this service are that your coins will be delivered within an hour; also, the only way to verify is via a mobile number, to increase security. The service is also easy to use and has very fast performance. However, many people have said that the fees (4.9%) are too high.

8. Coinmama

Coinmama is a great Bitcoin trading site as it allows customers in nearly every country to purchase Bitcoin with a debit or credit card. Coinmama is seen to be a reliable and a trusted broker, although it has some of highest fees for a credit or debit card Bitcoin broker.

9. LocalBitcoins

LocalBitcoins is a service that helps you match Bitcoin buyers and sellers, and the main payment method for purchase is cash deposit. On the other hand, users will be allowed to advertise exchanges for the payment method they prefer. LocalBitcoins allows users to purchase Bitcoins via an in-person meeting while the transaction is being facilitated and secured by LocalBitcoins. The advantage of using LocalBitcoins is that private and in-person exchanges require no personal information. However, among the disadvantages are that you have to beware of scammers and it is more difficult to purchase larger amounts of Bitcoin compared to larger exchanges.

10. Coin Loft

Coin Loft is an Australian broker enabling you to purchase Bitcoin via credit card, cash deposit, POLi, and Flexepin. Using Coin Loft can be beneficial in various ways – when you purchase Bitcoin with cash, your coins will be delivered within an hour. It also supports a wide range of payment methods and is the only Australian service that accepts Flexepin. The disadvantage is that it has rather high fees, such as a 4% fee for cash purchases and 9% cumulative fee for credit card purchases. You will also have to verify your identity even for cash payments.

11. Mycelium Local Trader

Mycelium Local Trader is similar to LocalBitcoin in that it will help you find your local Bitcoin sellers. Once it has matched you with your seller, you will then meet up in-person and begin the trade. The benefit of using this service is that there are no fees, so it is cheap and easy to purchase Bitcoins with cash. It’s also a private way to purchase Bitcoins as no personal information is required.

Think we might have missed one? Please let us know and we will add it to the list.

Read More on Crypto News Australia

The world of cryptocurrency is constantly changing. You can stay up to date with the latest Australian Crypto news here. Or, if you would like to learn more about digital currencies, then please visit our Guides section for more tips, advice, and information.

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Crypto Exchange Crypto News Cryptocurrency Law Zipmex

Crypto Lending Woes Continue as Zipmex Files for ‘Bankruptcy Protection’

Singapore-based multinational crypto exchange Zipmex has revealed it is seeking bankruptcy protection against legal action from creditors.

The embattled company, which froze user withdrawals last month, has submitted moratorium applications relating to its five component entities, including Zipmex Australia:

Zipmex Buys Time ‘For Up to Six Months’

The latest legal move automatically grants Zipmex protection from the continuation or commencement of proceedings by claimants for 30 days, or until after a Singapore court makes a decision on the applications – whichever comes first.

According to Zipmex’s legal team, however, its five applications filed on July 22 seek moratoriums to prohibit legal proceedings against the company for up to six months.

After initially pausing all trading and withdrawals on July 20, Zipmex has since resumed withdrawals from its trade wallet but its popular Z-Wallet remains disabled pending the outcome of discussions with partners.

Zipmex plans to use the time allowed by bankruptcy protection to resolve its liquidity issues, create a restructuring plan, and secure new investments to support its operations going forward. It also claims to have received “formal, registered interest” from potential investors to help shore up its finances.