Binance weathers the storm, CZ a flight risk, HECO bridge hacked for $86M

Binance Dodges a mass Exodus of funds But the htx heo bridge experiences one Of its own as it's hacked for 86 Million good morning Happy Thanksgiving To you in the US you are listening to The ryen crypto podcast by coin Telegraph with me Robert bags steering You through the crypto Cosmos with daily Dispatches from the digital Frontier if You want to stay ahead of the curving Crypto make sure you click that follow Button grab yourself a coffee let's get Into it Okay you Americans may have been taking Some well-deserved time off but crypto Never sleeps so here is a quick rundown Of what we're covering today there has Been no Mass Exodus of funds from Binance after the doj settlement the htx And heo cross Chain Bridge is hacked With $86 million stolen 13.6 million of That hack is stolen from hot Wallets on The HDX exchange us prosecutors say that CZ is an unacceptable risk of flight and Finally is crypto trading plagued with Substance Abuse yesterday's episode was Heavy Goinging with the breakdown of binance's $4.3 billion settlement CZ pleading Guilty and a $50 million fine and a new CEO appointed at the exchange if you Didn't listen make sure you go back as It really was a historic day for crypto So while this was unfolding one question

Really stuck with me will there be a Mass Exodus of funds from the exchange If it's Once Bitten and twice shy most Of us in crypto are fully agoraphobic so A F of that magnitude would unsettle Even the largest of organizations and so If I was honest I expected a lot of Money heading for the doors but it seems That isn't happening Turner Wright Yesterday put together a piece on a Report by the blockchain analytics firm Nansen who were closely following the Flow of money around binance so even Though the situation between binance the Justice department and CZ was very Different from that of FTX and Sam Bankman freed I'm sure many people were Concerned about possible liquidity Issues at binance and anything that Might affect their funds but at thus far Based on the recent nanson report it Doesn't seem like we've had uh Significant instability at the exchange A pausing of withdrawals anything like That but for now it seems to be business As usual for binance other than the fact There'll be more reporting required more Oversight particularly for any Operations The Firm has in the US and 24 Hours from the United States Department Of Justice announcement of the Settlement binance saw a 9956 million Net outflow on ethereum that is 956 Million more eth left the exchange than

Entered it this sounds awful but as with All things some context really douses The Flames of fear here in the first 12 Hours the value of binance's total Holdings increased from 64.6 billion to 65.2 billion and that takes into account Both the outflow of money and the price Dip crypto experienced I'm going to Presume you're suspicious like me so the First 12 hours was not a Jerry manded Statistic it's just all the report could Offer at that time what was more Interesting about nansen's analysis is The comparison with past negative events I'm simply going to quote them here in The past binance has processed higher Volumes of outflow and negative net flow June 2023 after the SEC sued binance December 2022 after insolvency And the immediate aftermath of FTX so as Turner said and this really has been a Positive surprise for me it's more or Less business as usual at binance it Seems the same goes for crypto too as of This morning the total market cap is Back to pre- binance news Levels in January 2022 vitalic berin Said my argument for why the future will Be multi-chain but it will not be cross Chain is that there are fundamental Limits to the security of bridges that Hop across multiple zones of sovereignty He has been proved correct time and time Again on this one now he can point to an

86.6 million hole in the htx and heo Cross Chain Bridge for yet more evidence Yesterday the blockchain security Platform PC Shield tweeted a suspicious Huge withdrawal of 10,145 eth around $90 million from the Heo bridge note the transaction is Initiated by the operator looks like a Compromised operator unfortunately this E was not lonely as it was siphoned from The bridge by a hacker several other Transactions followed this enormous Hall Taking different tokens to different Addresses this still unknown hacker Lifted usdcoin chain link Sheba enu and Several others including 18.8 million of Hobi Bitcoin and $42 million of tether Taking the total to 86.6 million dollar in stolen crypto Justin Sun the founder of Tron and bitor And the deao owner of HDX formerly huobi Global alerted his followers on X that The attack on the bridge was happening But he also had to calm the users of his Htx exchange before we get more into That I wanted to speak to Ezra regera Who wrote this piece this the second Time it happened to a project late to Justin son this month so uh they've had Two exploits of the same man so it's Possible that someone may be targeting This business or you know we also seen Comment from Twitter speculating that it Could have been an attap from the inside

But yeah there are so many possibilities But if I was then I'd start looking at Uh any other potential security Weaknesses in their other businesses So To avoid any future problems hopefully We don't see a third Incident the htx and heo Bridge hack had A thread to it that the blockchain Security firm cyers uncovered 13.6 Million of the 86 $6 million stolen Through the exploit was from hot wallets Cyers said that the losses came from Three compromised hot wallets from which ,24 e $7.3 million of usdt 1.78 million Usdc and 62,200 Link were drained in Justin Sun's AFF forementioned tweet he Wrote htx and heo cross Chain Bridge Undergo hacker attack htx will fully Compensate for htx is hot wallet losses Deposits and withdrawals temporarily Suspended all funds in htx are secure And the community can rest assured we Are investigating the specific reasons For the hacker attack once we complete The investigation and identify the cause We will resume services this hot wallet News was written up by Z Sun so I wanted To get his thoughts too yeah so it's Unfortunate to see what had happened um But that said this is the second Incident involving the htx exchange uh Within the past two month and the first One happened in September and it was a Hack for around 9.2 million I believe

And it was also involving htx uh hot Wallet so I'm curious to see if users Funds are really Secure okay so during yesterday's Episode I discussed what the guilty plea Meant for CZ I also made a comment I Hesitated putting in not because it Wasn't a genuine consideration I'd had But because it was potentially stoking The Flames I said the final albeit Unlikely twist to this tale could come In the form of extradition being a CZ Lives in Dubai and the United Arab Emirates has no extradition agreement With the US things could get spicy but It doesn't look on the cards well it Seems that the doj has put thought into That exact scenario yesterday Martin Young wrote a piece about the United States government prosecutors who are Trying to stop CZ from leaving the US The prosecutors wrote that CZ presents An unacceptable risk of flight and Non-appearance if he is allowed to leave The United States pending sentencing and They added that the government would not Be able to secure his return due to that Lack of an extradition agreement with The UAE the prosecutors also added this Compelling hypothetical that I'm going To quote directly he has three young Children and a partner in the UAE once In the UAE and faced with the prospect Of traveling back to the United States

To face up to 18 months in prison he may Elect to Simply stay in the UAE with his Family I would also go as far as to say That although CZ would lose his $175 Million Bond the $50 million trusty Setup and still have paid a 50 million Doll fine I suspect he could not only Afford that hit but would likely feel he Could make it back nevertheless I feel As I did yesterday that it's unlikely That any of this would happen but it's Not surprising that the doj is unwilling To take Chances finally I want to cover a Brilliant feature in the magazine by Coin Telegraph it was titled this is Your brain on crypto substance abuse Grows among crypto Traders and it was Written by Mitch Ivan this is a long and Thoughtful piece and I just cannot do Justice to the full article so there's a Link in the show notes please give it a Read as a title implies there is a Worrying trend of drug use in crypto Trading this isn't wholly unexpected Given the Wall Street Trader cliche of Yester year in stories Like the Wolf of Wall Street although that sort of Trader Environment has matured over the years And most banks and hedge funds will no Longer stand for what perhaps they once Would crypto doesn't have the same Restrictions Abdullah bulard founder and CEO of the balance luxury rehab said

That the high intensity of crypto tring Combined with its 24/7 accessibility Encourages the use of stimulants this Then in turn encourages downers like Benzo diazines and alcohol to deal with The anxiety and the other effects of Stimulants there are two quite Unbelievable tweets Linked In This Magazine piece the first as recently as April 2021 was from Caroline Ellison the Former CEO of alamida research who Tweeted nothing like regular amphetamine Ed to make you appreciate how dumb a lot Of normal non-medicated hum experience Is if you go back around another 18 Months in 2019 Sam bankman freed tweeted Stimulants when you wake up sleeping Pills if you need them when you sleep be Mindful of where your heads space is I Often nap in the office so that my mind Doesn't leave work mode in between Shifts Stellar advice there Sam Mitch's Feature goes on to look at Cryptocurrency trading addicts effects On the brain and treatment in this Really important piece so please make Sure you take the time to give it a full Read okay that is it for today go attack That turkey or nut roast consider Yourself informed thank you for Listening to the ryzen crypto podcast by Coin Telegraph if you're enjoying these Daily updates please make sure you let Us know by following subscribing or

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