Today’s Crypto Roundup: The Downtrend Continues

January 29, 2019
Saad Mohammad


Today’s Crypto Roundup: The Downtrend Continues

60% of All Crypto Exchange Hacks Traced to Two Groups

According to a report released by Chainalysis, two groups are responsible for the majority of global crypto exchange hacks. According to their research, about 60% of all publicly reported hacks can be traced to these two groups. These criminal groups have netted about $1 billion in total which amounts to about $90 million per breach. The report also suggests that the hackers move the stolen funds through a complex network of wallets and exchange in an attempt to hide the funds’ origin. Chainalysis named these two groups Alpha and Beta. Alpha moves stolen funds quickly and converts about 75% of the funds within 30 days. Beta, on the other hand, converts 50% of the funds and takes six to eighteen months to cash out. This information can be used to tailor security and counter-hacking protocols by consumers and companies.

QuadrigaCX Goes Offline Citing Maintenance Issues

According to an announcement on their webpage on January 28th, QuadrigaCX has gone offline to solve a maintenance issue. As of today, the exchange remains inaccessible. Some of its users turned to Twitter and Reddit once they couldn’t access or withdraw their funds. Many speculated that the exchange had become insolvent. Not to mention, in October 2018, QuadrigaCX disputed $19.6 million with the CIBC (Canadian Imperial Bank of Canada). The exchange has had trouble accessing the stated amount of funds ever since the IBC froze its accounts. The situation has been further aggravated by the death of QuadrigaCX’s founder, Gerry Cotten.

Crypto Exchange Liqui Exits as Bitcoin Plunge Persists

Crypto Exchange Liqui has decided to exit the field in the midst of Bitcoin’s bearish run. As per a company statement on its homepage, the firm determined that it will be unable to provide liquidity for its remaining users. The firm, therefore, decided that it wouldn’t be logical to continue providing its services any longer. Liqui stated that traders will be able to withdraw their digital assets within 30 days. Failing to do so, there would be no guarantee that the platform would remain online. However, it did state that if conditions become favorable again, it would return to the field. Its return would be dependent on Bitcoin’s long-term performance. For now, though, the exchange has folded and has formally exited the market.

Aliant Introduces Free Crypto Processing for Some Merchants

US merchant payment processing firm Aliant has announced that it intends to offer free crypto processing to some merchants. According to a January 29th tweet, free crypto processing via Aliant is now available for qualifying merchants. These merchants must sign up for debit and credit card processing. However, these merchants need to be located in the U.S. or Europe to qualify. To make this possible, Aliant has partnered with a domestic bank. It assures its customers that all their transactions are compliant with federal laws and regulations as well as KYC and AML rules. Their primary goal is to make cryptocurrencies every merchant’s go-to form of payment.   

Crypto Transaction Volumes Rise in Africa According to Paxful

Paxful reveals that the number of transactions it processed from Africa is rising despite plunging prices. According to the firm, Africa is its biggest market with consumers using hundreds of different methods to make purchases. African transactions have increased by about 130% which represents an average of 17,351 trades per day. According to Paxful, a spike in activity began towards the end of November. With this being a bear market, a majority of traders are selling. Therefore, the team at Paxful believes that most of the demand is from nations where currencies are on the decline, such as Zimbabwe.