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LINK $9.36 +0.49%
HYPE $43.52 -4.72%
AAVE $112.11 +5.30%
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XLM $0.1648 +3.00%
ZEC $332.17 -3.01%

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Hainan Local Financial Supervision Bureau: Beware of the chaos of "pseudo exchanges" and reiterate the prohibition of RWA tokenization business within the territory

According to Hainan Daily, the Hainan Provincial Local Financial Supervision Administration has issued a risk warning regarding trading venues. Recently, the Hainan Provincial Local Financial Supervision Administration learned from relevant channels that certain entities are promoting under names such as "Hainan International Data Asset Exchange," "Hainan Data Exchange," and "Hainan Marine Exchange," claiming to legally conduct businesses related to RWA (Real World Assets) and RDA (Real Data Assets).Market entities are conducting business in violation of regulations under the guise of trading venues without approval, which is suspected of illegal financial activities and endangers public property safety. In response, the Hainan Provincial Local Financial Supervision Administration has the following risk warnings:Currently, there is no approved establishment of the "Hainan International Data Asset Exchange" within our province. The establishment of trading venues in our province must be approved by the provincial government (the list of approved trading venues can be found in the appendix). Without approval from the competent authorities, market operators are not allowed to use terms such as "exchange" or "trading center" in their registered names, nor can they engage in activities related to trading venues.The People's Bank of China, the China Securities Regulatory Commission, and eight other departments jointly issued a notice on further preventing and addressing risks related to virtual currencies, clearly stating that the regulation of the tokenization of Real World Assets (RWA) follows the principle of "strictly prohibited domestically, strictly regulated overseas." It emphasizes that conducting tokenization activities of Real World Assets (RWA) within the country, as well as providing related intermediary and information technology services, is suspected of illegal activities such as unauthorized issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures businesses, and illegal fundraising, which should be prohibited.We urge investors to establish a correct investment perspective.

Chaos Labs: The Aave approximately $27 million liquidation event was caused by a configuration issue with the CAPO risk oracle

According to an analysis report released by Chaos Labs, the recent liquidation event of approximately $27 million in Aave was caused by a configuration issue with the CAPO risk oracle.The root cause lies in the inconsistent update constraints at the smart contract level: the snapshotRatio parameter is limited by an on-chain constraint that allows only a 3% increase every 3 days, preventing it from being updated directly from approximately 1.1572 to the target value of about 1.2282, and it can only increase to about 1.1919; meanwhile, the snapshotTimestamp was successfully updated to a timestamp from 7 days ago. This misalignment between the ratio and the timestamp led to the CAPO calculating an upper exchange rate (approximately 1.1939) that was about 2.85% lower than the actual market exchange rate, triggering the liquidation of approximately 10,938 wstETH. No bad debt was incurred by the protocol during the event.Chaos Labs and BGD Labs have immediately reduced the wstETH borrowing limit for affected instances to 1 and manually aligned the parameters to restore the exchange rate through Risk Steward. A total of 141.5 ETH has been recovered through BuilderNet, which will be used to compensate affected users, while the remaining amount will be covered by the Aave treasury. The amount expected to be temporarily compensated by the DAO is not anticipated to exceed 345 ETH.

The U.S. federal court dismissed the lawsuit against Binance and Changpeng Zhao related to terrorism

A federal judge in Manhattan, Jeannette Vargas, dismissed a civil lawsuit that sought to hold Binance and its founder CZ accountable, accusing their trading activities of aiding terrorist organizations in carrying out global attacks.The judge found that the 535 plaintiffs (including victims and their families) failed to reasonably explain that the defendants "intentionally conspired with the terrorist attacks, participated in their execution, or ensured the success of the attacks through their actions." The plaintiffs alleged that the attacks occurred between 2017 and 2024 and were carried out by external terrorist organizations such as Hamas, Hezbollah, the Iranian Revolutionary Guard, ISIS, Kata'ib Hezbollah, the Palestinian Islamic Jihad, and Al-Qaeda, attempting to attribute hundreds of millions of dollars in cryptocurrency and transactions with Iranian users to Binance and CZ.The judge noted that while Binance and CZ may have some awareness of the potential for terrorist financing through the exchange, their relationship with terrorist organizations was limited to "their or their affiliates' accounts on Binance and trading in a fair manner." The judge also criticized the plaintiffs' 891-page, 3,189-paragraph complaint as "entirely unnecessary," but allowed for amendments. A Binance spokesperson stated, "The court correctly dismissed these baseless allegations. Binance strictly adheres to compliance requirements and has a zero-tolerance policy for illegal activities on the platform." CZ also mentioned that the plaintiffs were attempting to leverage Binance's acknowledgment in November 2023 of violating anti-money laundering and sanctions laws and paying a $4.32 billion penalty to seek triple damages.

The U.S. government profits nearly $20 billion from the Chen Zhi case and the Zhao Changpeng case through technological hegemony

The report titled "Player One" ------ A Deep Analysis of the Global Virtual Currency Asset Harvesting Operation under American Technological Hegemony, jointly released by the China National Computer Virus Emergency Response Center and other departments, showcases the process by which the United States utilizes technological hegemony to harvest global virtual currency assets. According to incomplete statistics, from 2022 to 2025, the United States has confiscated global virtual currency assets worth over $30 billion through various cases, with the single case of Chen Zhi alone accounting for $15 billion, representing 50%.The report indicates that in October 2025, the U.S. Attorney's Office for the Eastern District of New York announced criminal charges against Chen Zhi, the founder of the Cambodian Prince Group, involving telecom network fraud, money laundering, and more. They also publicly announced the seizure of approximately 127,000 bitcoins controlled by him, valued at about $15 billion based on market prices at the time, setting a record for the largest virtual asset seizure in the history of the U.S. judicial system.The case of Binance founder Zhao Changpeng is another typical example of the United States using judicial hegemony and technological surveillance methods to force global virtual asset platforms to comply with its regulatory rules, achieving economic harvesting and rule export.From 2023 to 2025, the United States initiated a dual accountability approach of "civil + criminal" against Zhao Changpeng, ultimately resulting in Binance paying a fine of $4.3 billion based on a plea agreement."During the investigation process, the U.S. employed comprehensive technological surveillance methods, achieving thorough penetration and evidence collection of Binance's operational data, user data, and transaction data, showcasing its technological advantages in the monitoring of digital asset platforms," Du Zhenhua further explained. The U.S. infiltrated Binance's internal servers through hacking techniques, obtaining core operational data and communications records of executives, confirming that Binance executives were aware of U.S. regulatory rules but deliberately evaded compliance requirements.The report also states that from 2023 to 2025, hacker organizations with the backing of the U.S. government launched targeted attacks against over 20 mainstream virtual currency asset exchanges worldwide. The attack methods included implanting backdoors, spear phishing, and supply chain infiltration, focusing on stealing user wallet private keys, platform transaction flows, and compliance regulatory information, with attack targets covering platforms in multiple countries and regions across Asia, Europe, and Africa.
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