Web3 🌕Monday Unwrapped: Upbit's Rebound, Lazarus Group's Bitcoin Hoard, Hong Kong's Crypto Vigilance, and Mixin's Security Challenge

Welcome to a brand new week filled with exciting developments in the world of Web3! Today's highlights promise to keep you on the edge of your seat. Get ready for a thrilling ride through the latest in Web3 technology and security advancements!

1. Upbit Restores Withdrawals with Transparency

Upbit, a crypto exchange, temporarily froze withdrawals due to suspicious Aptos (APT) transactions. Abnormal deposit attempts triggered the halt for a thorough investigation. The platform assured users of safety measures and warned of potential price swings upon resumption. Users may experience delays due to network congestion. Timing variations in confirmations and deposit reflection were noted. Upbit previously partnered with Microsoft, resulting in a 15% price surge for APT, though it couldn't sustain it. FTX documents hinted at possible further sell-offs. The exchange, recently bankrupt, is anticipated to sell around $100 million in digital assets weekly. Earlier, Aptos Labs' official X account was hacked, inviting followers to a fraudulent airdrop.

Crypto exchange UpBit temporarily suspends Aptos withdrawals due to scam token bug

The price of Aptos on the exchange, South Korea’s largest, momentarily spiked 35% before crashing down following the bugfix.

The BlockZack Abrams

2. Lazarus Group's $40M Bitcoin Trove

The North Korean Lazarus Group possesses $47 million in various cryptocurrencies, predominantly Bitcoin. Data from 21.co reveals holdings in BTC ($42.5M), Ether ($1.9M), BNB ($1.1M), and stablecoins ($640,000). This is a decrease from the $86 million held after the Stake.com hack in early September. The FBI and OFAC have identified 295 wallets linked to Lazarus. Recent activity was noted on September 20. 21.co suggests the actual holdings may surpass reported figures. Lazarus has been implicated in major hacks, including the CoinEx attack, resulting in a $55 million loss. Crypto thefts by North Korean hackers have decreased by 80% in 2023, totaling $340.4 million, down from $1.65 billion in 2022. U.S. authorities have warned of potential Lazarus Group attacks on healthcare and public health sectors.

North Korean Lazarus Group amasses over $40M in Bitcoin, data reveals

North Korean-sponsored hacking collective the Lazarus Group holds more than $47 million in stolen crypto in its digital wallets, most of which is in Bitcoin.

CointelegraphMartin Young

3. Hong Kong's Crypto Platform Safeguards After JPEX

The Hong Kong Securities and Futures Commission (SFC) will release a list of licensed, deemed licensed, closing, and pending virtual asset trading platforms (VATPs) to combat unregulated crypto platforms. This move follows the JPEX scandal, deemed a severe financial fraud case. JPEX allegedly promoted services to Hong Kong residents without a license, leading the SFC to investigate. Due to evasive behavior and inadequate responses, JPEX was placed on the alert list in July 2022. The SFC initiated a comprehensive, cross-jurisdictional investigation, escalating after an investor complaint in April 2023. The fallout from JPEX amounts to an estimated $178 million, with over 2,200 complaints filed. Notably, 11 individuals, including influencers and employees, have been detained for questioning. The SFC emphasizes the necessity for proper regulation to ensure market confidence and plans to collaborate with local police for information sharing on suspicious activities by VATPs. This initiative aims to hold wrongdoers accountable.

Hong Kong to list ‘suspicious’ crypto platforms in wake of JPEX scandal

In the wake of the JPEX scandal, Hong Kong’s Securities and Futures Commission says it will issue a public list of suspicious crypto platforms in a bid to combat fraudulent activity.

CointelegraphTom Mitchelhill

4. Mixin Temporarily Pauses Services After $200M Security Incident.

Mixin Network experienced a devastating exploit, resulting in a potential loss of up to $200 million. The network, which facilitates cross-chain asset transfers and decentralized exchange for various cryptocurrencies, fell victim to an attack on its cloud service provider. As a consequence, deposit and withdrawal services were temporarily halted. The team aims to resume services after obtaining consensus among all nodes. Mixin Network's transactions rely on validation from 35 mainnet nodes. To address this incident, Mixin founder Feng Xiaodong will provide an explanation in a public Mandarin livestream on September 25 at 12am EST. This exploit underscores the critical importance of robust security measures in the crypto space.

Mixin Platform Suspends Deposits, Withdrawals After $200M Security Breach - Decrypt

Initial reports from PeckShield suggest that Mixin lost millions in various cryptocurrencies including Bitcoin, Ethereum, and DAI.

DecryptNivesh Rustgi

As we wrap up this exhilarating dive into today's Web3 highlights, it's clear that the blockchain landscape is bustling with activity and intrigue. From Upbit's transparent efforts to restore withdrawals to the jaw-dropping revelation of Lazarus Group's $40 million Bitcoin trove, the day has been nothing short of eventful. We've also witnessed Hong Kong's crypto platform fortifying its defenses post-JPEX, and Mixin taking necessary precautions following a substantial $200 million security incident. These developments remind us of the dynamic nature of the cryptocurrency world, where vigilance and adaptability are paramount. Stay tuned for more updates on the ever-evolving frontier of Web3 technology!

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