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ZachXBT calls out Gate.io for keeping 2018 hack under wraps

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ZachXBT calls out Gate.io for keeping 2018 hack under wraps

ZachXBT calls out Gate.io for keeping 2018 hack under wraps Cynthia Chung · 2 hours ago · 2 min read

On-chain sleuths ZachXBT and Austin @1A1zP1 investigated Gate.io’s coverup of a hack that occurred in 2018 and called out Gate.io’s CEO for self-promoting as a blockchain security steward.

2 min read

Updated: November 15, 2022 at 4:23 pm

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Cover art/illustration via CryptoSlate

Cryptocurrency exchange Gate.io allegedly covered up a hack that occurred on April 18, 2018, which saw $230 million swiped from the exchange, according to a Nov. 14 Twitter thread detailing the incident by on-chain sleuth ZachXBT.

ZachXBT called out Gate.io’s founder and CEO Lin Han for advocating for blockchain asset security and claiming Gate.io has been safeguarding customers’ assets with systematic solutions via a series of tweets on Nov. 10 following FTX’s downfall.

ZachXBT also published a screenshot of his correspondence with Gate.io in the Twitter thread, which shows that the on-chain sleuth confronted the exchange regarding the cover-up. Gate.io brushed off questions and criticisms regarding the cover-up. Instead, it responded that its platform is equipped with “many built-in mechanisms” that are immune to penetration by anyone.

Investigating the Gate.io hack

Gate.io was hacked for approximately $10,777.94 Bitcoin (BTC), $218,790 Ethereum (ETH), $Z3,783 Zcash, $99,999,000 Dogecoin (DOGE), $3,043,268 Ripple (XRP), $11,000 Litecoin (LTC), and $175,866 Ethereum Classic (ETC), which totaled 234,337,668.88.

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At the same time, it became one of the four exchanges targeted by North Korean conspirators to fund its weapons of mass destruction (WMD) programs that have raised total proceeds estimated at up to $2 billion. The other hack victims – YouBit, UpBit, and Bithumb lost approximately $500 million, $50 million, and $30 million, respectively.

As part of the Gate.io hack investigation, ZachXBT shared on-chain sleuth Austin @1A1zP1’s series of tweets that detailed his efforts in tracing on-chain transactions of the LTC and BTC stolen from Gate.io’s cold wallet addresses.

Austin also raised concerns about Gate.io’s reuse of addresses and clusters – groups of bitcoin addresses controlled by one entity- that was previously hacked in 2015. This contradicts Gate.io’s claims that it is holding its customers’ cryptocurrency with a high level of security and self-description as one of the safest exchanges in the world.

The hack refers to when Gate.io lost of 7,170 Bitcoin from its cold wallets as a result of a hack when it was still operating under its original name Bter.com.

After the fact and following China’s ban on initial coin offerings and fiat-to-crypto spot trading in 2017, Bter.com relaunched as Gate.io and began offering crypto trading and Chinese yuan over-the-counter (OTC) trading. Bter never disclosed how the hack transpired but was able to recover some of the stolen funds.

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Bankruptcy

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all

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Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all Soumen Datta · 2 hours ago · 1 min read

Kevin O’Leary said he spent $9.7 million in crypto, had FTX equity worth $1 million.

1 min read

Updated: December 8, 2022 at 8:38 pm

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Cover art/illustration via CryptoSlate

Canadian businessman and investor Kevin O’Leary revealed on Dec. 8 in an interview with CNBC that he lost all of the $15 million FTX paid him to represent the now-defunct crypto exchange.

BREAKING ‼️Kevin O’Leary got paid $15 Million to be FTX spokesperson.

That money belongs to FTX customers. 🤨

— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) December 8, 2022

During CNBC’s pre-market morning news program “Squawk Box,” the hosts confronted O’Leary for not properly assessing the risks associated with investing and promoting FTX. In response, O’Leary said he fell victim to “groupthink,” stating that none of his investors lost money.

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“The institutional interest in FTX on the US equity was unbelievable. The amount of people that approached me saying, ‘How do I get a piece of this deal?’ And I said at that time, ‘I’m a paid spokesperson, I cannot bring you in as an LP,” O’Leary said.

Speaking about the $15 million deal loss, he said he put about $9.7 million into crypto, had about $1 million of FTX equity, and a little over $4 million was cut due to taxes and agent fees.

However, some Twitter users are skeptical that he lost all his investments. 

The money conveniently vanished to zero. Funny how that happens. He won’t be returning a single red cent. pic.twitter.com/RaNa63hX7K

— 𝐓𝐗𝐌𝐂 (@TXMCtrades) December 8, 2022

 Nevertheless, the Canadian investor acknowledges that his investment was a bad one, as FTX mismanaged billions of dollars.

Even though the FTX vaporized billions of dollars, O’Leary refused to condemn Sam Bankman-Fried, without an audit. 

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“There’s only the murder of my money in this case… If you want to say he’s guilty before he’s tried, I just don’t understand it,” O’Leary said. 

Earlier, Kevin O’Leary supported Bankman-Fried after the ex-FTX CEO denied any connection to Alameda’s activities that brought down the whole market.

I lost millions as an investor in @FTX and got sandblasted as a paid spokesperson for the firm but after listening to that interview I’m in the @billAckman camp about the kid! https://t.co/5lWzTT7JEv

— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) December 1, 2022

Moreover, the Canadian businessman recently tweeted that he is not afraid of investing in failed entrepreneurs.

I am not scared of investing in entrepreneurs that have had catastrophic failures. Failure is often the best teacher.

— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) December 8, 2022

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Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure

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Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure

Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure Josh O’Sullivan · 3 hours ago · 1 min read

GoPlus Security, a company that covers major blockchain networks with multidimensional risk detection, receives funding from Binance Labs.

1 min read

Updated: December 8, 2022 at 8:29 pm

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Cover art/illustration via CryptoSlate

Binance Labs, the venture capital and innovation arm of Binance, has announced that it is leading private round II funding for GoPlus Security, a company that provides open, permissionless, user-driven security services for the Web3 environment. GoPlus’s multidimensional risk detection covers most major blockchain networks, making it a key player in the growing field of Web3 security.

Binance Labs is leading a private round II for GoPlus Security. GoPlus Security has developed a real-time, dynamic, and automated security detection platform that covers token, NFT, malicious address, approval security, contract security and dApp security https://t.co/Vs4XniMggN

— Wu Blockchain (@WuBlockchain) December 8, 2022

With this funding, GoPlus Security will be able to develop its technology further, create a security services marketplace, and attract top talent to help build a safer and more user-friendly Web3 ecosystem.

Yi He, Co-Founder of Binance and Head of Binance Labs, commented on the funding round for GoPlus Security:

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“Security is essential to the Web3 ecosystem and community. By supporting consumer-facing solutions like GoPlus Security, we hope to see how security services for end users can evolve and thrive.”

GoPlus Security’s real-time, dynamic, and automated security detection platform covers token, NFT, malicious address, contract security, and dApp security. The company handles over 2 million daily data calls and is the most significant security data provider on 13 blockchain networks.

Nicola Wang, Investment Director at Binance Labs, commented on the importance of a robust security infrastructure for Web3 development and the potential of GoPlus Security:

“It is crucial to have a strong security infrastructure for Web3 development, and it is exciting to see a professional team like GoPlus Security making substantial progress towards their long-term vision.”

GoPlus Security is preparing to launch a security services marketplace by the end of 2022, according to the Binance Blog announcement.

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Binance

Third party auditor confirms Binance Bitcoin reserve is over collateralized

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Third party auditor confirms Binance Bitcoin reserve is over collateralized

Third party auditor confirms Binance Bitcoin reserve is over collateralized Oluwapelumi Adejumo · 2 hours ago · 1 min read

The financial auditor Mazars focused on Binance users’ Bitcoin holdings across several blockchains

1 min read

Updated: December 7, 2022 at 3:05 pm

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Cover art/illustration via CryptoSlate

Binance’s Bitcoin (BTC) reserves collateralization is in excess of 100% as of Nov. 22, when a snapshot of its total liabilities and reserves was taken, according to financial auditor Mazars.

As part of #Binance’s user fund transparency work and Proof of Reserves updates, we’re working with digital assets experts at global financial audit, tax and advisory firm, @Mazars_SA.

The first report from Mazars about Binance’s $BTC Proof of Reserves has been published today.

— Binance (@binance) December 7, 2022

To arrive at this result, the auditor considered in-scope assets lent through margin and loan service offerings that are collateralized by out-of-scope assets.

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The firm focused on Binance’s users’ Bitcoin holdings across several blockchains like the Bitcoin network, Ethereum (ETH), and Binance-backed blockchain networks (BNB Chain and Binance Smart Chain).

Mazars wrote:

“At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities.”

Its users can also independently confirm that their assets were included in the audit by pasting their Merkle hash into the appropriate box on the page.

The crypto exchange revealed that the proof-of-reserves for other tokens would be released soon.

Previously, Binance revealed that its customer net balance was 575,742.4228 BTC as of Nov. 11, while its on-chain reserves were 582,485.9302 BTC.

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Binance CEO Changpeng Zhao tweeted on Nov. 28 that the exchange had moved over $2 billion worth of BTC as part of its reserve audit efforts.

This is part of the Proof-of-Reserve Audit. The auditor require us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is big, and so is the Change. Ignore FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j

— CZ 🔶 Binance (@cz_binance) November 28, 2022

Its previous proof of reserves was criticized by Kraken’s Jesse Powell for not including liabilities.

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