Exchange Risk

Hong Kong virtual currency trading platform AAX ceased operations due to system maintenance, resulting in over 300 customers being unable to recover approximately HKD 100 million in assets. The person in charge fled and was later arrested. They are currently facing multiple charges including theft and fraud. The police have confirmed that victims have suffered losses of about HKD 81 million.

BlockFills has suspended all customer deposits and withdrawals, and due to losses of approximately $75 million from its crypto asset lending business, CEO Nicholas Hammer has resigned, with Joseph Perry taking over. Market volatility has led to a decline in collateral value, resulting in irreparable losses and revealing the company's structural weaknesses. The current status of customer funds is unclear, with some customers having completed withdrawals before the freeze.

The CEO of the crypto lending platform Blockfills, Nicholas Hammer, has resigned, with Joseph Perry temporarily taking over. The company suffered a loss of $75 million due to market deterioration, suspended deposit and withdrawal services, and is seeking to restore liquidity and may look for a buyer.

A Chinese man was arrested in Thailand for allegedly being involved in a scam related to the BHE Exchange cryptocurrency trading platform, affecting approximately 20,000 victims with losses exceeding $128 million. The man promised high returns, then the platform shut down. He has now been handed over to the investigation authorities and is awaiting deportation back to China for trial.

Step Finance, SolanaFloor, and Remora Markets announce shutdowns after a January hack resulting in $40 million worth of assets stolen. After failing to find a viable business recovery plan, they have decided to cease all operations and offer buyback and redemption options for secured token holders.

Decentralized lending protocol Zerolend announces the suspension of all operations due to decreased market support and rising malicious activities making it unsustainable. Users are advised to withdraw their remaining funds, and ZeroLend will update the smart contract to attempt to recover the affected assets.

ZeroLend announces it will gradually cease operations due to the protocol's current situation being unsustainable, with declining liquidity and increased malicious activities. The team is prioritizing ensuring users can safely withdraw their assets and recommends users withdraw their funds as soon as possible.

The cryptocurrency market has experienced significant fluctuations recently. Blockfills has temporarily suspended customer deposits and withdrawals due to liquidity pressure, although certain transactions can still be conducted. As a liquidity platform serving multiple institutions, its suspension has raised market concerns, reminiscent of the 2022 crypto winter. Backed by strong shareholders, whether Blockfills can resume normal operations smoothly in the future remains to be seen.

DeFi derivatives protocol Polynomial ceased operations on February 14, entering the winding-down phase, shutting down Polynomial Chain and Trade, and canceling the first quarter TGE plan. The lack of liquidity was the root of the problem; the team will retain participant data, and the new company will still be related to derivatives.

The cryptocurrency market has experienced significant fluctuations recently. Blockfills has temporarily suspended customer deposits and withdrawals due to liquidity pressure, although certain transactions can still be conducted. As a liquidity platform serving multiple institutions, its suspension has raised market concerns, reminiscent of the 2022 crypto winter. Backed by strong shareholders, whether Blockfills can resume normal operations smoothly in the future remains to be seen.

The Jing'an District Court in Shanghai tried a virtual currency investment dispute case. Ms. Wu sued after being induced by a host to invest 1.05 million yuan and was unable to withdraw funds later. The court held that her investment actions violated laws and public order and morality, ruling that Ms. Wu must bear the losses herself and dismissing her claims. This verdict serves as a significant warning to investors engaging in speculative virtual currency investments.

Chicago-based cryptocurrency liquidity provider and lending institution BlockFills paused customer deposits and withdrawals last week and is currently working to restore platform liquidity. The company has over 2,000 institutional clients, with trading volume expected to exceed $61.1 billion in 2025. Despite the suspension of withdrawals, customers can still open and close positions in spot and derivatives trading.

The U.S. Department of Justice has fined cryptocurrency trading platform Paxful Holdings Inc. $4 million for failing to establish effective anti-money laundering measures, allowing funds related to criminal activities to flow and profiting from it. Investigations found that Paxful was aware that some customer funds originated from illegal activities but continued to provide services.

BlockFills has temporarily halted deposits and withdrawals due to market volatility but continues to allow trading positions. The firm, which served over 2,000 clients and facilitated $61 billion in trading last year, aims to restore liquidity.

Odaily Planet Daily reports that, according to market sources: Cryptocurrency lending platform BlockFills has suspended customer withdrawals. This move comes amid ongoing volatility in the digital asset market, and more information may be disclosed later.

Pi Network has fallen from a high of $3 to around $0.14. X users accuse the team of years of promises with no mainnet, only a mobile mining show, calling it the longest-running scam disguised as Web3. The project team is about to unlock 250 million tokens, with an average of 8.3 million per day, releasing 23.6 million on February 13. The RSI is at 35, approaching oversold levels, suggesting a possible rebound.

Russia's communications regulator Roskomnadzor has implemented speed restrictions on Telegram since February 10, and has received over 13,000 user complaints about service disruptions. Although a complete ban is not currently planned, if Telegram fails to comply with legal requirements, it could impact its user experience in Russia and subsequently affect the TON blockchain ecosystem closely linked to it.

On February 10th, Sam Bankman-Fried, who has been sentenced to 25 years in prison on multiple charges of fraud and conspiracy, spoke out again through his verified X account, claiming "FTX has never gone bankrupt," and accused the company's lawyers of submitting a "false bankruptcy petition." This statement starkly contrasts with the U.S. court rulings, regulatory documents, and financial audit results, and has quickly attracted attention within the crypto community. According to judicial records, SBF was involved in embezzling over $8 billion of customer assets, leading the platform to become insolvent by the end of 2022. The massive losses of his affiliated trading firm Alameda Research were the direct cause of the collapse. Although subsequent asset recoveries and market rebounds have improved creditor expectations in some cases, prosecutors and judges both emphasized that this does not change the established facts of fraud.