Exchange Risk

The UK has imposed new sanctions on Southeast Asian scam networks, naming Chen Zhi and his long-time collaborator Hu Xiaowei, and sanctioning the cryptocurrency exchange "New Coin," alleging that it supports fraudulent activities.

South Korea’s banking industry is actively strengthening cooperation with cryptocurrency exchanges to deal with constrained loan growth and to seek new profit opportunities. Several banks have established partnerships with exchanges, despite historical incidents involving mistaken Bitcoin airdrops. Regulators plan to expand their regulatory authority, which could intensify competition among banks.

Vietnam's Ministry of Public Security has detained several individuals related to the cryptocurrency platform ONUS, accusing them of embezzling investor funds through false advertising, involving billions of dollars. Investigators claim the suspects manipulated token supply and demand, with 140 people already summoned for questioning. The ONUS platform claims to have 7 million users and a market value of approximately $25 million, but has not yet responded to these allegations.

Gate News reports that on March 26, Co-founder Yu Xian of SlowMist stated that a certain CEX has taken down the page that required users to input their plaintext seed phrases. He pointed out that the security model for online web pages is very weak, much lower than that of extensions and apps; collecting plaintext seed phrases through online web pages is easy for phishing sites to imitate and has long been a common phishing tactic.

Gate News: On March 26, according to ZachXBT's disclosure, Circle froze USDC balances in 16 business-related hot wallets on March 25. The relevant entities stated that this action is related to a U.S. civil case with details not yet made public. ZachXBT stated that upon reviewing on-chain data, these addresses are involved in exchanges, gaming platforms, and forex businesses with no apparent connections to each other. The freeze has already impacted the operations of the related businesses.

Gate News: On March 25, Resolv Foundation announced that due to recent security incidents involving Resolv Labs' stablecoin USR, both the protocol and applications have been suspended. Season 4 airdrop claiming functionality is temporarily unavailable, and staking and unstaking functions for RESOLV tokens are also temporarily unavailable. Once the protocol recovery plan is finalized and the application can be safely used again, the relevant functions will be restored.

RootData posted a transparency alert on Twitter, pointing out missing information on multiple decentralized exchanges and calling on projects to update their information to improve transparency scores. The scoring system measures information completeness on a scale from A to F, with lower scores indicating higher risk of misconduct, requiring investors to exercise caution.

Gate News reported that on March 25, according to BlockSec Phalcon monitoring, an address that has been continuously receiving funds from the illegal trading platform Huione transferred 200,000 USDT to a certain CEX. The address had previously withdrawn a total of 1.78 million USDT in 3 batches from a certain CEX approximately one month ago.

Network3 founder Rock reportedly took his own life last year, with the community pointing to multiple pressures from the community, team, and investors. KOLs noted that Rock's optimistic personality became a weakness in the crypto space, and the pressure he faced may have been related to market maker Web3Port, which caused multiple tokens to collapse due to one-sided selling. The incident has sparked deep reflection on the crypto entrepreneurship environment.

A certain CEX reported that traders hold large open positions on Polymarket, with expectations that BP's FDV will exceed $200 million after TGE, driving up BP's price. The CEX's investigation confirmed that these traders are unrelated to them, and they maintain a zero-tolerance stance toward insider trading.

As of March 25, SIREN coin price surged 30.89% to $1.69, with a market cap of approximately $1.228 billion. The project combines AI and blockchain; however, it faces severe supply concentration risks, with controlling parties holding 88.5% of tokens, significantly increasing market volatility risks.

Circle recently froze USDC balances in 16 hot wallets belonging to multiple enterprises, an action related to a U.S. civil litigation case. The relevant wallets were used for large-scale user transactions. The freezing action has raised questions about Circle's review process and has impacted enterprise operations.

On-chain detective ZachXBT revealed that Circle froze USDC balances in 16 hot wallets due to a U.S. civil lawsuit, with these wallets involving multiple enterprises including exchanges and casinos. ZachXBT questioned whether Circle adequately reviewed the requests and pointed out that this action has impacted business operations.

DeFi protocol Resolv suffered an attack on March 22, where hackers minted 80 million stablecoins USR at low cost and cashed out approximately $25 million, causing USR to depeg and triggering market volatility. The attack stemmed from a lack of security measures on the protocol's privileged accounts, impacting overall liquidity and affecting the lending market. Resolv subsequently suspended the protocol and emphasized that collateral pools remained unaffected, but experts believe the hidden losses caused by the incident are significant.

Golden Finance reported that the Resolv Foundation announced on the X platform that due to a recent security incident involving Resolv Labs' stablecoin USR, with both the protocol and applications now suspended, the Season 4 airdrop claiming function is temporarily unavailable. Additionally, the staking and unstaking functions for RESOLV tokens are also temporarily unavailable. Once the protocol recovery plan is finalized and the application can be safely used again, these functions will be restored.

Balancer Labs, the parent company of the well-known liquidity protocol Balancer, has announced it will cease operations. The shutdown follows a hacker attack in November that resulted in a $128 million loss, leaving the company unable to continue operations. Co-founder emphasized that the protocol will continue to exist and plans to restructure, concentrating resources on core products. The coming year will be critical.

Taiwan NFT trading platform Lootex announced it will cease operations on April 4, 2026, citing drastic changes in the global market. The platform emphasizes user asset security, stating no urgent action is required. Users can continue trading on other platforms, and the platform's token $LOOT remains tradable on exchanges. The company, founded in 2018, has developed over 8 years and extends its gratitude to supporters.

DeFi protocol Resolv exploited by hackers who used a vulnerability to mint 80 million unbacked stablecoin USR at low cost, cashing out approximately $25 million and triggering stablecoin depegging and lending market turmoil. Although officials claimed the collateral pool remained intact, experts criticized weak permission controls and lack of effective security safeguards. This incident reveals potential risks of stablecoins and the impact of supply inflation on markets.