Smart Whale Cumberland Liquidated 8K $ETH Prior to Market Crash

In a strategic move, Cumberland, a prominent player in the crypto space, offloaded 8,000 $ETH, equivalent to $14.4 million, just before the cryptocurrency market took a downturn.

As per data from CoinGlass, the entire cryptocurrency market witnessed a 7% decline on August 18, reducing its total valuation to $1.1 trillion. Ethereum’s price notably dipped to its lowest at $1,550, marking a 15% decrease from its value 24 hours prior.

Following this market crash, Cumberland proceeded to withdraw 4,000 $ETH ($6.72 million) from Binance.

Cumberland’s astute market operations aren’t new. On June 6, 2023, amidst the market’s FUD (Fear, Uncertainty, Doubt) due to the SEC’s lawsuit against Binance, several institutions and whales, termed as “SmartMoney”, were observed purchasing at lower prices.

During this period, Cumberland moved 67.9 million $USDC out of Circle and subsequently deposited 67.1 million $USDC into Coinbase. In a similar vein, another notable entity, FalconX, transferred 37 million $USDC from Circle and channeled 29.5 million $USDC into Binance.

After Cumberland’s strategic stablecoin deposit, the cryptocurrency’s price saw a temporary decline, bottoming out at $24,800 on June 14, 2023. However, in the following weeks, Bitcoin’s market value made a significant recovery, soaring by over 35% to reach $31,804 by July 13. Such astute investment strategies, especially purchasing at depressed prices, have historically yielded substantial returns for institutions like Cumberland.

A brief about Cumberland

Operating as a subsidiary of DRW, Cumberland has been a significant figure in the crypto domain since 2014. With over three decades of experience inherited from DRW, the firm utilizes technology, research, and risk management to present institutions with strategic market opportunities. Their services span both traditional voice markets and advanced electronic trading solutions, including platforms like Marea and an API. Their collaborations with industry giants such as Bloomberg in areas like data, research, and media further emphasize their influential stance in the crypto ecosystem. Cumberland’s deep-rooted understanding of Web3 verticals and their contribution to growth solidifies their position as a preferred partner in the digital markets.

Image source: Shutterstock


Tagged : / / / / / /

SEC Collaborates with South Korea in Probing Terraform Labs and Do Kwon

The U.S. Securities and Exchange Commission (SEC) has secured approval to collaborate with South Korea in its probe against Terraform Labs and its co-founders, Daniel Shin and Do Kwon. This decision, sanctioned by District Judge Jed Rakoff on August 16, allows the SEC to question Shin and access documents from Chai Corporation, a Seoul-based payments provider he founded.

Shin and Kwon co-founded Chai in 2019, initially operating closely with Terraform. By 2020, the companies had diverged. The SEC’s investigation focuses on Chai’s use of the Terra blockchain and its relationship statements with Terraform. The reasons behind Chai’s separation from Terraform are also under scrutiny.

While Terraform Labs and Kwon didn’t oppose the SEC’s motion, they presented their own queries and have previously refuted the SEC’s claims. Accusations suggest that they falsely stated Chai’s use of the Terra blockchain for transactions.

In May 2022, the Terra cryptocurrency ecosystem experienced a staggering $40 billion loss, causing its token, LUNA, to plummet nearly to zero and triggering a broader market crash. Subsequently, the LUNA token split into two distinct entities: LUNA and LUNA Classic (LUNC). South Korean prosecutors have since charged Shin with fraud, accusing him of hiding the risks associated with investing in Terraform’s cryptocurrency.

On February 16, 2023, the U.S. Securities and Exchange Commission (SEC) charged Singapore-based Terraform Labs and its CEO, Do Hyeong Kwon, with conducting a multi-billion dollar crypto fraud from April 2018 to May 2022. The scheme involved various unregistered crypto asset securities, including “mAssets” and the Terra USD (UST) stablecoin. The SEC alleges that Terraform and Kwon falsely marketed these assets, promising high returns and misleading investors about their stability and usage. In May 2022, the value of these tokens crashed. The SEC emphasizes the importance of transparency and adherence to securities laws in the crypto sector.

Kwon is currently jailed in Montenegro for trying to exit using a fake Costa Rican passport, resulting in a three-month sentence. He faces investigations in both the U.S. and South Korea, beyond the SEC’s complaint.

Image source: Shutterstock


Tagged : / / / / / / /

Republic Invests $5.25 Million into INX at a Valuation of $50 Million

The INX Digital Company, Inc., a US-regulated broker-dealer, ATS, and transfer agent, has announced the successful conclusion of its initial investment phase with OpenDeal Inc., also known as Republic. This development comes as part of the Subscription Agreement dated June 15, 2023, between the two entities. Republic, a renowned global financial firm, has acquired 9.5% of INX’s shares with an investment of US$5.25 million, reflecting a pre-money valuation for INX of approximately US$50 million.

This collaboration aims to expand the scope of tokenization infrastructure and democratize access to digital assets globally. Following this investment, both INX and Republic are considering a non-binding term sheet related to the potential acquisition of all issued and outstanding share capital of INX by Republic, which could amount to up to US$120 million.

Shy Datika, CEO of INX, emphasized the significance of this partnership, stating, “This is more than just a business investment; it’s an investment in the future, which begins with a deep-rooted collaboration to reshape the global financial landscape.”

Kendrick Nguyen, CEO of Republic, mirrored this sentiment, highlighting the broader vision of reimagining how both institutional and retail investors engage with digital finance.

The collaboration between Republic and INX encompasses a Subscription Agreement, facilitating a synergy of cash and shares, and a Collaboration Agreement. This partnership aims to:

  1. Make INX’s tokenized asset services available for secondary market trading on the INX ATS.
  2. Integrate INX’s trading mechanisms for pivotal digital assets, such as Bitcoin and Ethereum, with Republic’s vast ecosystem.
  3. Incorporate Republic’s FX broker-dealer capabilities into the INX infrastructure.
  4. List the Republic Note on the INX ATS and integrate the INX trading platform with the comprehensive Republic Wallet.

INX has also engaged Weild Capital, LLC to act as its financial advisor in connection with the Republic investment. David Weild, the principal of Weild Capital, LLC, serves as the chairman of the INX board.

INX’s Recent Strategic Initiatives

IOn August 9, 2023, The INX Digital Company, Inc. announced its intention to renew its Normal Course Issuer Bid (NCIB) program to repurchase its common shares. Concurrently, its subsidiary, INX Limited, plans to renew its INX Token repurchase program. Accepted by the Neo Exchange Inc., the NCIB allows the company to purchase up to 12,713,823 Common Shares, approximately 10% of its public float as of July 28, 2023. The combined purchase price for both programs is capped at US$5 million. The programs will commence on August 11, 2023, and conclude by August 10, 2024.

On July 19, 2023, The INX Digital Company, Inc. announced a collaboration with Casper Labs, a leading enterprise blockchain software provider. Casper Labs has chosen INX as its platform to tokenize and list its equity for secondary market trading. This move showcases Casper Labs’ commitment to digital assets and regulatory compliance. The listing on INX’s regulated ATS, INX.One, will grant global access to Casper Labs’ shares for investors in over 60 countries. The equity tokenization and listing are set for September 2023, marking a significant step in the adoption of digital assets.

Image source: Shutterstock


Tagged : / / / /

BNB hacker liquidates from market meltdown, loses $53M

The dramatic market reversal that occurred in the cryptocurrency arena resulted in the liquidation of many traders. According to the data that was shown on the blockchain, the attackers responsible for the BNB Smart Chain vulnerability, which resulted in the theft of nearly $600 million worth of BNB tokens, were also liquidated.

On October 6th, an exploit on the BSC Token Hub cross-chain bridge led to the temporary suspension of BNB Smart Chain (BSC). Validators have been asked to halt BSC, but the issue was then contained, ensuring the safety of all funds. The community’s swift assistance was crucial in freezing transfers. Node service providers, including Hash, Neptune, BSCScan, and others, were commended for their rapid response. While initial losses were estimated between $100M-$110M, community and security efforts have frozen about $7M. The collaboration and support from the community have been deeply appreciated.

On August 18, the collateral connected with a cryptocurrency wallet that was tied to the vulnerability was liquidated on the cryptocurrency lending site Venus Protocol, as stated by the  PeckShield. Over 53 million dollars’ worth of value was assigned to the collateral.

The value of the whole cryptocurrency market dropped by 7% on August 18, according to CoinGlass, bringing the total worth of the market down to $1.1 trillion.

The market data tracker CoinGlass estimates that the disaster was responsible for the loss of more than one billion dollars’ worth of cryptocurrency assets over the course of the preceding twenty-four hours.

The decline in the price of BNB below $220 (liquidation price) has a negative impact on the activities of the hackers operating on the BNB Smart chain. After the price plummeted, three positions related to the wallet were instantly closed out.

As a direct and immediate result of the dramatic decrease in the market, a large number of individuals were obliged to face a financial blow, while others were able to mitigate the magnitude of their losses.

Image source: Shutterstock


Tagged : / / /
Bitcoin (BTC) $ 38,121.21 3.18%
Ethereum (ETH) $ 2,059.02 3.09%
Litecoin (LTC) $ 69.95 2.03%
Bitcoin Cash (BCH) $ 223.73 1.11%