China Crypto Roundup (Sept 21- Sept 28): China’s Central Bank Blacklists Local Bitcoin OTC Traders, Chinese State Media Outlets Engage in Coordinated Effort to Promote Cryptoassets, KuCoin Crypto Exchange Hacked for $150 Million
The top stories from the Chinese cryptocurrency sphere this past week include: some crypto OTC traders in China are blacklisted by China’s Central Bank, multiple state-run media outlets in China began their daily reports with a heavy focus on cryptocurrencies, KuCoin exchange hacked for $150 million in bitcoin……
China’s Central Bank Blacklists Local Bitcoin OTC Merchants
Several crypto Chinese OTC traders have been listed in the “punishment list” of China’s central bank, and all bank cards under their name have been suspended from Non-OTC trading. Some crypto OTC accounts have reportedly been put on a “blacklist” maintained by the PBoC and are forbidden to use bank-issued cards for the next three years or conduct online transactions in the next five years.
Insiders pointed out that in the current situation, it is not only involved in black money that will be frozen accounts, but the behavior of buying and selling cryptocurrency itself may trigger the risk control mechanism of banks in China.
About 4,000 bank accounts have been frozen since June 4 on the suspicion that their transactions may have been contaminated by money-laundering activities, According to 8btc’s previous report.
China state media make rare reports calling crypto 2020’s top-performing asset
China Central Television (CCTV), the country’s biggest TV broadcaster, aired a three-minute-long segment that highlighted the massive success crypto assets have seen in the past year. According to the report, some “cryptoassets” have soared more than 70% since the beginning of the year, a huge success for a still underrepresented and unknown market. Cryptocurrencies, the report explained, can now be undoubtedly be seen as the top-performing investment asset in the world.
Several hugely popular newspapers and other print media in China also ran full-length articles on the same subject. Xinhua’s Thursday report also pinpointed Ethereum and the massive growth it has seen this year as the main culprit behind these results.
Such a rare and coordinated effort also sparked some to wonder what the real intention and nuance might be, since state-owned media in China typically carry political agendas.
KuCoin hacked for $150 million in cryptocurrency
Cryptocurrency exchange Kucoin has been hacked for $150 million in bitcoin and multiple ERC20 tokens. On September 26, a large number of abnormal token withdrawals occurred in the hot wallet of Singapore-based cryptocurrency exchange KuCoin.
KuCoin CEO Johnny Lyu said in a live stream that one or more hackers obtained the private keys to the exchange’s hot wallets. KuCoin transferred what was left in them to new hot wallets, abandoned the old ones, and froze customer deposits and withdrawals, Lyu said.
On September 27, ERC-20 tokens stolen from the KuCoin exchange had made a profit through Uniswap trading. KuCoin also promised to reimburse users who lost funds in the hack using its cold wallets. Deposits and withdrawals have been temporarily suspended while the company’s security team investigates the incident.