Exchange Risk

Gate News Announcement, March 10th, Hunan Financial Office confirmed that Yuzhi Financial Co., Ltd., under the name of "Virtual Asset Copy Trading," has completely "run away." Currently, police in various regions have opened channels for rights protection registration, and affected users can register through official channels.

Gate News reports that on March 10, the crypto community announced that Aethir's marketing director Masha Prusso was accused of having sourced women for Epstein. Meanwhile, community insiders revealed that Aethir has recently undergone large-scale layoffs, with several co-founders and executives leaving one after another, suspected of soft Rug pulling. It is also reported that Masha Prusso's personal website has been taken down recently.

JELLYJELLY tokens experienced an extreme divergence of 34% between the perpetual contract mark price and the on-chain spot price on March 10, suspected of price manipulation. Analysis shows a surge in open interest and a funding rate reaching -2% every 4 hours, indicating market instability and manipulation risk. Analysts warn investors that this situation could trigger significant price volatility and reflects structural risks during the integration process of decentralized and centralized exchanges.

Gate News Announcement: On March 9, the Financial Intelligence Unit (FIU) of South Korea issued a preliminary notice to a certain CEX for suspected violations of the "Specific Financial Transaction Information Act," engaging in transactions with unreported overseas virtual asset service providers, and inadequate KYC procedures. The exchange has been temporarily suspended for "6 months with partial operation." Responsible personnel will be held accountable. This restriction mainly affects the virtual asset withdrawal function for new users. Existing users' KRW and crypto asset deposits, withdrawals, and trading are temporarily unaffected.

Cryptocurrency company BlockFills has suspended customer deposits and withdrawals due to worsening market conditions and legal disputes. They are currently evaluating a debt restructuring plan and have hired consultants to assist. Facing allegations from Dominion Capital and a temporary court injunction, BlockFills is seeking restructuring and improvements to its financial and governance mechanisms.

Flow Foundation and Dapper Labs have applied to the Seoul court to suspend the delisting of FLOW from major exchanges, following previous trading halts caused by cybersecurity incidents. Although the event did not affect user balances, it raised concerns about FLOW liquidity and investor confidence. The court will review this application.

Project Eleven's latest research indicates that under post-quantum cryptography, the current address generation methods used by encrypted exchanges may become invalid. The study shows that systems relying on hierarchical deterministic wallets cannot operate under the new standards, and exchanges will be unable to generate new addresses from public keys.

Flow Foundation has applied to the Korean court to suspend the delisting plans of major exchanges for FLOW tokens, citing that other global exchanges have resumed support after the incident. The security breach caused a 75% drop in the FLOW token's value, impacting its market supply and reputation, although the token remains tradable on other markets. If the court application fails, it could affect FLOW's liquidity in South Korea.

BlockFills seeks restructuring advice from consulting firm BRG and appoints Mark Renzi as Chief Transformation Officer, aiming to complete the restructuring, inject new capital, and implement governance controls. The company recently paused deposits and withdrawals due to market volatility and is facing legal proceedings.

Gate News Report, March 7 — According to community user feedback, Warden Protocol (WARD) appears to have rug pulled, with its token price plummeting 90% since being listed on a certain CEX Alpha section. It is reported that Warden Protocol was previously positioned as an intent-driven modular blockchain network, later shifting towards AI-related narratives. The project previously claimed that all three co-founders had backgrounds at a certain CEX.

Gate News Report, March 7th, cryptocurrency trading and lending company BlockFills has sought restructuring advice from consulting firm BRG. After halting withdrawals, BlockFills appointed BRG's Mark Renzi as Chief Transformation Officer. BlockFills' new management team aims to complete the restructuring, inject new capital, and implement new governance and financial controls.

The Korea Consumer Agency has initiated a collective dispute resolution process regarding subsidies for a certain CEX API activity, as the exchange refused to distribute the promised subsidies to some users. 77 consumers applied for mediation in January, and the committee plans to release a mediation plan by March 23.

Renowned crypto broker BlockFills has suspended customer withdrawals due to market downturn and is seeking BRG's assistance for corporate restructuring. The company is facing litigation over mismanagement of funds, which has led to a federal injunction, and needs to improve internal governance to attract new capital. BlockFills' predicament is similar to past crypto platform collapses, and whether the restructuring can succeed in the future will be a focal point.

BlackRock's private credit funds have begun restricting withdrawals due to an increase in redemption requests, sparking market concerns over private credit and the DeFi ecosystem. Analysts warn that potential asset impairments or defaults could lead to liquidity tightening, affecting both traditional lending and the crypto market.

HyperEVM's custodial lending protocol HypurrFi disclosed that previous versions of Aave V3 had a "rounding error" vulnerability, allowing attackers to extract underlying tokens. HypurrFi guarantees the safety of user funds, has paused supply and borrowing operations in affected markets, and is working with relevant parties to address security issues.

A U.S. federal judge has issued a temporary restraining order against the crypto lending platform BlockFills, freezing its disputed assets in response to a lawsuit from Dominion Capital, which accuses it of misappropriating customer assets and concealing losses. BlockFills has incurred a $75 million loss due to poor management and has suspended withdrawals.

Cryptocurrency project Montra Finance has suspended its project after the development team was conscripted by Iran, leading to an 80% plunge in the token's market value. The lack of official information has raised investor doubts, with some believing this is a "exit scam." The incident highlights the impact of geopolitics on the crypto market, and investors should remain cautious of opaque projects.

HyperEVM's HypurrFi posted a message on the X platform that the previous version of Aave V3 3.5 has a "rounding error" vulnerability, which attackers can exploit to extract underlying tokens. Affected markets have suspended related operations, user funds are safe, and the team is working together to resolve the issue.

RE Red Envelope (RE·X) announced the cessation of operations after nearly 9 years of operation, due to geopolitical influences and fundraising difficulties, leading to a deterioration in financial condition. Tens of thousands of users' account balances have been frozen and the platform has entered liquidation procedures. Users need to declare their claims by March 15, 2026. This incident highlights the risks faced by Taiwan's digital payment platforms in safeguarding user funds and the need to strengthen regulatory measures.

Kalshi recently caused controversy due to the death news of Hameini, leading to a surge of funds into related prediction contracts, which resulted in settlement chaos and a trading halt. Although Kalshi refunded users with a net loss of approximately $2.2 million, the platform's promotional activities were criticized and prompted U.S. lawmakers to call for investigations into similar assassination-related contracts. Polymarket also faced controversy, as the settlement of certain contracts angered users and raised suspicions of insider trading.