Exchange Risk

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.

_South Korea deploys AI to detect crypto manipulation in real-time, analyzing trades by the second._ _FSS targets whale schemes, pump-and-dumps, and social media fraud with automated detection tools._ _New Digital Asset Basic Act brings licensing rules for exchanges, operators, and

Amidst the intense volatility in the cryptocurrency market, DeFi protocol World Liberty Financial (WLFI), supported by the family of U.S. President Donald Trump, has unexpectedly come under pressure due to liquidation risks faced by lending platforms. The protocol was forced to sell Bitcoin to repay debts, drawing significant market attention. According to on-chain data platform Arkham Intelligence, the official wallet of World Liberty Financial sold over 170 Bitcoins on Wednesday at an approximate price of $67,000 each, cashing out about $11 million. The funds were immediately transferred to leading lending protocol Aave to repay loans and avoid liquidation. Alongside the forced sale of assets to cover debts, WLFI tokens have also continued to experience downward pressure.

Bithumb mistakenly sent 620,000 BTC (worth $40 billion) to 695 users on February 6 (intended to send 2,000 KRW). The team discovered the error within 20 minutes and froze the accounts within 35 minutes. This incident triggered a flash crash in Bitcoin to $55,000. The team ultimately recovered 99.7% of the funds. Online users received 20,000 KRW and 7 days of zero trading fees.

Amidst the intense volatility in the cryptocurrency market, DeFi protocol World Liberty Financial (WLFI), supported by the family of U.S. President Donald Trump, has unexpectedly come under pressure due to liquidation risks faced by lending platforms. The protocol was forced to sell Bitcoin to repay debts, drawing significant market attention. According to on-chain data platform Arkham Intelligence, the official wallet of World Liberty Financial sold over 170 Bitcoins on Wednesday at an approximate price of $67,000 each, cashing out about $11 million. The funds were immediately transferred to leading lending protocol Aave to repay loans and avoid liquidation. Alongside the forced sale of assets to cover debts, WLFI tokens have also continued to experience downward pressure.

Gate Research Institute: By 2025–2026, PayFi is evolving from a crypto payment tool into a new generation of payment financial engine. Stablecoins are achieving large-scale application in high-frequency and cross-border payments, with settlement efficiency and cost structures significantly better than traditional systems. Web2 and Web3 continue to merge, with Visa, PayPal, and Neobanks becoming key connection nodes; at the same time, stablecoins, RWA, and AI are jointly shaping the fundamental form of PayFi, driving automation and 24/7 operation in settlement, asset flow, and risk management. Looking ahead to 2026, regulatory clarity, on-chain capabilities of real assets, and maturity of AI applications will determine the competitive landscape and long-term barriers for PayFi.

Aperture Finance experienced a security breach on January 25, losing $3.67 million due to vulnerabilities in specific smart contracts. The hacker then moved $2.4 million worth of ETH to Tornado Cash. The platform has since halted affected functionalities and urged users to revoke risky approvals.

Manhattan court sentences NTU Department of Information Management graduate and Saint Lucia diplomatic service member Lin Ruixiang to 30 years without parole. In 2020, he established the dark web Incognito Market under the alias "Pharaoh," charging a 5% transaction fee, handling NT$3.3 billion worth of drug transactions over three years. He laundered money by jumping from Bitcoin to Monero. The FBI used Chainalysis to track transactions through exchanges and KYC, ultimately arresting him at the airport in May 2024.

_Arbitrum DAO warns users after its official X account is hacked, emphasizing that protocol funds remain safe and secure._ Arbitrum DAO has confirmed that its official X account has been compromised, prompting a security alert for all users. Consequently, the team warned users not to click on an

_Losses at CrossCurve underline the high risk of cross-chain bridges during periods of rising crypto attacks._ CrossCurve halted user activity after an attack targeted its cross-chain bridge. The incident forced developers to investigate a smart contract flaw. Partner protocols and and

_A $29M SOL treasury outflow triggered a STEP price drop and added pressure to ongoing security concerns across Solana DeFi._ Step Finance has confirmed unauthorized SOL transfers following a security breach involving several internal wallets. Treasury-linked accounts were impacted, and

Bybit, the crypto derivatives and spot exchange, finished 2025 with the second-highest trading volumes, following a $1.5 billion hack in February 2025. CoinGecko’s analysis shows Bybit processed about $1.5 trillion in total trading volume for the year, capturing 8.1% of the global centralized exchan

Introduction On Sunday, Matcha Meta disclosed that a security breach linked to one of its main liquidity providers, SwapNet, compromised users who had granted approvals to SwapNet’s router contract. The incident underscores how permissioned components within decentralized exchange ecosystems can