Blockchain ecosystem Hedera Hashgraph has joined the Linux Foundation, contributing its entire source code, which will be hosted as the Hiero project.
Hedera Hashgraph has announced its entry as a founding “premier member” of the newly launched Linux Foundation umbrella project, LF Decentralized Trust.
In a Sept. 16 press release, Hedera said that it has also donated its entire source code, including its “hashgraph consensus algorithm and all core services, tooling, and libraries,” to the project, which will be managed under the newly established “Hiero” project within LF Decentralized Trust to foster open-source development.
The Hiero project will support a range of applications and core features for the Hedera network, such as wallets, decentralized exchanges, explorers, bridges, SDKs, private ledgers, and advanced cryptographic solutions, the press release reads.
Following the latest development, Hedera president Charles Adkins will join the governing board of LF Decentralized Trust, alongside leaders from Accenture, DTCC, and Hitachi.
In early September, Hedera also joined the Decentralized Recovery Alliance as a founding member alongside Cardano developer Input Output, aiming to develop a platform for easier crypto recovery for web3 users.
Despite the latest development, Hedera’s (HBAR) token has seen a decline of 3%, trading at $0.05. The governance of the Hedera network will remain under the Hedera Council, ensuring the network’s integrity and security while leveraging the Linux Foundation’s extensive resources and community support.
Nervos Network’s native token, CKB, has surged by over 111% in the last 7 days, driven by its recent listing on the South Korean exchange Upbit.
The jump in price has spotlighted Nervos Network (CKB) as the top-performing cryptocurrency among the top 100 digital assets by market value and elevated its price from $0.159 to $0.0176 on Sep. 16.
This is the highest level the token has been since June 10, with its market capitalization leaping to $729 million, positioning it as the 92nd largest digital asset globally, according to CoinGecko data.
The recent spike in CKB price is largely driven by its listing on the major South Korean exchange, Upbit. The new listing has made it easier for traders to purchase CKB with U.S. dollars, South Korean won, or Tether (USDT), leading to a big jump in demand.
Data from CoinGecko shows a surge in activity from South Korean traders, with the CKB/KRW trading pair alone contributing over $331.6 million in 24-hour volume on Upbit. Binance followed with $134.7 million in trading volume.
The renewed optimism resulted in a 100% leap in its total daily trading volume, currently hovering around $381 million.
Meanwhile, Coinglass data shows that CKB’s daily open interest surged by 13.4% to $116.6 million when writing. This coupled with an increase in trading volume, suggests a spike in investor activity, potentially adding fuel to CKB’s ongoing rally.
Nervos Network is a proof-of-work layer-2 project designed to enhance Bitcoin (BTC) by adding programmability and scalability through the implementation of the RGB++ protocol.
CKB price action
As crypto.news reported earlier, CKB’s price surge has also coincided with the convergence of two lines forming a falling wedge pattern, a technical setup that typically signals further upside potential.
It has also broken the upper Bollinger Band, which stands at $0.0153, signaling a wave of upward strength. In addition, the Relative Strength Index is reflecting an overbought condition, sitting at 78, which signifies that buying pressure has been intense.
Historically, an RSI above 70 suggests overbought levels, but this can also accompany continued price rallies, particularly when strong momentum is at play.
Given the current trend, traders should keep an eye on the $0.02 mark, which could serve as the next psychological resistance. A successful breach of this level, combined with strong volume, might push the price toward $0.025 or higher.
However, the overbought RSI does raise the possibility of a correction or consolidation in the near term. In the event of a reversal, the middle Bollinger Band, which lies near $0.0096, could act as a potential support level.
Traders should exercise caution and monitor the momentum, as a pullback to this level could indicate the beginning of a short-term consolidation phase.
Major liquidation levels
Currently, the critical liquidation thresholds for CKB stand at approximately $0.0152 on the lower side and $0.0176 on the higher side, with a high level of leverage observed among intraday traders at these prices, according to Coinglass.
Should market dynamics shift and the price of CKB fall to $0.0152, it could trigger the liquidation of nearly $5.77 million in long positions. Conversely, if the market sentiment turns positive and the price rises to $0.0176, around $9.5 million in short positions could be liquidated.
At press time, data indicated that bulls were in control, with the potential to trigger liquidations of short positions at higher levels.
A rebound push last week saw the global cryptocurrency market cap recover $180 billion amid a 9% surge in valuation. As a result, the crypto market cap recovered the $2 trillion mark to end the week at $2.1 trillion.
Following their impressive contributions to this rally, here are some top cryptocurrencies to watch this week:
BCH crossed 20-day MA
Bitcoin Cash (BCH) surged 9.36% last week, securing its place above $300. Although it faced a minor correction, it closed the week at $327, maintaining an upward trajectory.
Despite the price rise, the BBTrend — or Bollinger Band Trend — remains bearish, signaling weakness in the uptrend.
Volume peaked on Sept. 11, but has since declined, even as the price climbed. This divergence between price and volume could indicate a lack of buying strength. Therefore, the rally may lose steam without renewed volume support.
BCH crossed above the 20-day moving average ($319) on Sept. 11, which now serves as a key support level. If the uptrend continues, BCH could target $340 or $350.
However, a dip below $319 may signal a retest of $300 or lower. Investors should watch for volume increases to sustain upward momentum.
Bitcoin Cash was developed by a group that believed Bitcoin should be used more as a peer-to-peer digital cash system, as outlined in Satoshi Nakamoto’s original whitepaper, rather than as a store of value or “digital gold,” which has been Bitcoin’s main use case.
ELON performs below par
Dogelon Mars (ELON) gained 6.11% last week, performing below the broader market but managing to stay in the green.
The meme coin spent most of the week below the 20-day moving average ($0.00000012566) until the final day, closing at $0.00000012776.
Currently, ELON is positioned above the 20-day moving average (middle Bollinger Band) and the lower Bollinger Band ($0.00000011944), but below the upper Bollinger Band ($0.00000013075). This suggests it still has room to rise before hitting resistance at the upper band.
The RSI at 46.39 indicates that ELON is not overbought, signaling potential upside momentum. If the bullish trend continues, expect resistance around $0.00000013075, with support at $0.00000011944.
If it breaks above the upper Bollinger Band, ELON could push higher, but failure to hold above the 20-day MA might lead to a retest of lower levels.
ELON pays homage to both Dogecoin and Elon Musk, whose rocket company — SpaceX — is reportedly working on designs for a Martian city,
CKB tops gainers list
Nervos Network (CKB) was the top performer last week, soaring by 117% to close at $0.01449.
The dramatic rally began on Sept. 13, with a massive 51% intraday spike, the largest gain since February.
This momentum carried into the new week, with CKB peaking at $0.01762 before pulling back slightly. The Fibonacci pivot levels show immediate resistance at $0.01351, which CKB has surpassed, with support at $0.00845 (pivot) if a retracement occurs.
The Commodity Channel Index reading of 369 signals extreme overbought conditions, suggesting that while the uptrend is strong, a short-term correction could be on the horizon.
Should a correction happen, investors should look for support around $0.00845, the pivot point.
If CKB maintains its bullish momentum, a breakthrough above its three-month high could trigger further gains. However, watch for consolidation or pullback given the overextended CCI.
The Nervos Network was created by a team of blockchain developers and entrepreneurs with expertise in cryptography. The core team includes co-founders Jan Xie, Terry Tai and Kevin Wang.
The Nervos Common Knowledge Base (CKB) acts as its Layer 1 blockchain.
The U.S. Department of the Treasury’s Office of Foreign Assets Control has sanctioned Cambodian businessman Ly Yong Phat for his role in operating cyber-scam centers that exploited trafficked workers to run crypto scams.
In a Sept. 12 press release, Phat, who is also a Cambodian senator, along with his conglomerate L.Y.P. Group and associated entities, was involved in serious human rights abuses related to forcing trafficked workers to participate in online scam operations.
These scams usually centered around convincing targets to invest in false cryptocurrency schemes or bogus foreign exchange trades, often leading to significant losses.
Crypto scams surge in Asia
The OFAC cited reports from the Financial Crimes Enforcement Network and the FBI’s Internet Crime Complaint Center which documented a dramatic increase in losses from investment fraud that often leverages the hype around cryptocurrencies.
In 2023 alone, cryptocurrency investment fraud losses surged to $3.96 billion, with the schemes being predominantly orchestrated by criminal organizations based in Southeast Asia, including those linked to the O-Smach Resort and other entities controlled by Phat.
The regulator alleges that many of those orchestrating these scams were, in fact, victims of human trafficking themselves. Deceived by false promises of employment, individuals were lured to the O-Smach Resort and other sites in Cambodia tied to Phat. Upon arrival, their phones and passports were confiscated, stripping them of any chance to escape, and they were forced into running crypto-related scams.
These trafficked individuals endured severe physical and psychological abuse, including beatings, electric shocks, and threats of being sold into further exploitative situations, effectively turning them into both victims and perpetrators.
According to the press release, local authorities have managed to rescue victims of various nationalities like China, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
Phat and his associated entities have been cut off from the U.S. financial system, with their assets frozen and all transactions by U.S. residents with them prohibited. These sanctions also apply to any businesses owned 50% or more by Phat or his affiliates, carrying harsh penalties for anyone found violating these rules.
From Cambodia to Laos
The incident, however, is not an isolated one. As reported by crypto.news, a 2023 investigation by Bloomberg journalist Zeke Faux uncovered a similar network in Cambodia and Myanmar, operated by Chinese gangsters.
Likewise, the Indian Embassy in Laos recently rescued 14 Indian youths from similar cyber-scam operations in the Golden Triangle Special Economic Zone where they were trafficked and coerced into crypto-related scams.
A 2023 FBI report warned that criminals use fake job ads on social media — ranging from tech support and call center roles to beauty salon positions — to lure victims into these operations.
The WazirX exploiter has laundered over $64 million via Tornado Cash, as allegations of insider involvement have surfaced.
According to PeckShieldAlert, on Sep. 13 the WazirX hacker moved 5,000 ETH, roughly $11.8 million, to a new address before laundering the stolen loot via cryptocurrency mixer Tornado Cash in a bid to obscure the trail.
#PeckShieldAlert The #WazirX exploiter-labeled address has moved the 5th batch of 5K $ETH (worth ~$11.8M) to a new address 0xa4d1…9845, likely preparing to launder them through a mixer. pic.twitter.com/7bQu9npzEo
With this latest transaction, the attacker has laundered about 27,600 ETH, valued at approximately $64.97 million, over the past weeks.
As the attacker moved the funds, reports surfaced alleging possible insider involvement in the $230 million breach that crippled what was once India’s biggest cryptocurrency exchange.
What are the allegations?
An X account named Justice for WazirX Users, citing unnamed sources and data from a First Information Report filed with the Delhi Police, pointed out some unusual activities at the exchange before the hack.
The allegations claim the attacker used fake KYC information to open a WazirX account and deposited cryptocurrency, which was traded for GALA tokens.
On July 18, the day of the breach, the hacker began withdrawing GALA tokens, which caused the depletion of WazirX’s hot wallet. This forced the exchange to transfer additional GALA tokens from cold storage, managed by its former custodian Liminal, to replenish the hot wallet.
During this process, the hacker allegedly injected malicious code, causing the transfer of tokens from cold to hot storage to fail. As subsequent attempts were made by cold storage signatories to move the funds the attacker managed to swipe their credentials in the process.
Having obtained the necessary signatures, the attacker allegedly used the WazirX team’s login session to initiate a final transaction on Liminal’s platform that upgraded the WazirX cold wallet contract, which ultimately led to the breach.
“Once these 3 signatures were submitted to Liminal, they provided the final 4th signature, allowing the contract to be upgraded,” JfWU added.
An analysis by Crystal Intelligence confirmed that the laptops of key personnel used for signing transactions were not compromised. A separate audit of Liminal’s system by Grant Thornton also found no evidence of a custodial breach, leading to more confusion.
JfWU argued that modifying the cold wallet’s smart contract would have been difficult without insider cooperation, raising suspicions of internal involvement.
The allegations are yet to be confirmed, but both JfWU and several WazirX customers are urging the Central Bureau of Investigation and the Enforcement Directorate to conduct a thorough investigation into the case.
Too many red flags, concerns, & malpractices. Everyone handling this both from @WazirXIndia & @liminalcustody should be investigated. The whole thing looks like @NischalShetty and/or @binance must be hiding something from its users. Should be investigated by @cbic_india@dir_ed
Amidst this chaos, WazirX’s restructuring process, announced on Aug. 28, is facing hurdles as the exchange seeks customer support for a moratorium application under Singapore’s insolvency laws to secure approval from the Singapore court.
However, the process hit a stumbling block as users expressed frustration over a poll that initially offered only a “Yes” option to support the application. On Sept. 12, following the backlash, WazirX management expanded the poll to include “No” and “No Position” options, allowing users to voice their opposition or remain neutral on the matter.
A Sept. 10 affidavit obtained by crypto.news showed that just 441 of WazirX’s 4.4 million users had come out in support of the proposal. A subsequent affidavit confirmed that a hearing on the moratorium application is set for Sept. 25, 2024, in the Singapore High Court.
QNT, the native token of Quant, has seen a 10% surge over the past day, making it the top gainer in the market today.
According to price data from crypto.news, Quant (QNT) was trading at $77.02 upon writing. The altcoin reached an intraday high of $77.77 That’s 37.5% above its weekly low of $56.54, demonstrating strong upward momentum in tandem with the rise in the broader altcoin market.
The spike in QNT’s value appears linked to the recent announcement of new staking capabilities on the Overledger Network, as confirmed by Gilbert Verdian, CEO of Quant. The updated Terms and Conditions now include provisions for staking, which is poised to enhance the token’s utility by promoting long-term holding and reducing its circulating supply.
Moreover, the strategic update not only incentivizes token holders with potential rewards but also bolsters the intrinsic value of QNT by integrating it more closely with the network’s operations.
This development has resonated positively among investors, who view the enhancement as a dual catalyst for increased demand and reduced supply, thereby potentially driving the price upwards.
Quant is known for facilitating seamless connections across different blockchain networks, allowing developers to build decentralized multi-chain applications. This capability is critical for fostering interoperability and paving the way for a more cohesive digital economy.
Whale activity and decreased exchange supply
Another factor contributing to QNT’s price movement is heightened activity from large investors, or whales, who have been accumulating the token during its recent dips. Data from FishTheWhales highlights an uptick in whale transactions, signaling booming confidence in the asset’s prospects.
Similarly, metrics from Into The Block show a substantial increase in netflow of large holders—those owning at least 0.1% of QNT’s supply—from -3.1k QNT to 7.42k QNT from early to mid-September.
Additionally, the number of addresses holding QNT for more than a year has surged by 37.2%, reaching over 102.9k. This uptrend in long-term holding is paralleled by a notable 87.4% rise in open interest, climbing from $6.47 million to $12.13 million in the first half of September, as per Coinglass data.
Analyst eye potential upside for QNT
Crypto analyst Dami-Defi, on X, pointed out that QNT has broken out of a falling wedge pattern, a traditionally bullish signal indicating a possible reversal. Following this breakout, QNT moved past the $69 resistance level, setting its sights on higher targets.
Dami-Defi predicts that if the momentum sustains, QNT could potentially test resistance at $82 and may even soar to $145.5, representing a major jump from its current price levels.
Spot Bitcoin exchange-traded funds in the U.S. experienced inflows on Sept. 12, a reversal from the previous day, while Ether ETFs saw their second consecutive day of outflows.
According to data from SoSoValue, the 12 spot Bitcoin ETFs logged net inflows of $39.02 million, a flip from the $43.97 million in outflows recorded the previous day. ARK 21Shares’ ARKB led the lot with reported inflows of $18.3 million. This comes after the fund witnessed outflows of $54 million the day before.
Fidelity’s FBTC followed with $11.5 million flowing into its fund. Notably, the ETF was the only fund to record net inflows for four straight days with $115.9 million entering it. Grayscale’s Bitcoin Mini Trust drew in $5.18 million.
VanEck’s HODL, Franklin Templeton’s EZBC and Bitwise’s BITB also saw net positive flows of $4.9 million, $3.4 million and $2.2 million respectively on the day.
Grayscale’s GBTC was the sole spot bitcoin ETF to report outflows, with $6.5 million leaving the fund, culminating in total outflows of $20.04 billion since its launch.
Meanwhile, the other seven BTC ETFs, including BlackRock‘s IBIT, witnessed no trading activity on the day. Notably, IBIT, which is the largest spot BTC ETF by net assets, has not experienced any net inflows since Aug. 27.
Total trading volume for the 12 BTC ETFs dropped to $896 million on Sept. 12, significantly lower than the $1.27 billion seen the previous day. These funds have recorded a cumulative total net inflow of $17.03 billion since inception. At the time of writing, Bitcoin (BTC) was trading at $57,874, per data from crypto.news.
Meanwhile, the nine U.S.-based Spot Ethereum ETFs experienced net outflows totalling $20.14 million, marking their second successive day of net outflows. All of the daily net outflows originated from Grayscale’s ETHE, with the remaining eight ether funds recording no flows on Sept. 12.
The trading volume for these investment vehicles also decreased, dropping to $106.14 million from $126.22 million the previous day. The spot Ether ETFs have experienced a cumulative net outflow of $582.74 million to date. At the time of publication, Ethereum (ETH) was exchanging hands at $2,346.
Gary Gensler, chair of the Securities and Exchange Commission, is under fire for his staff hiring choices at the regulatory agency.
Republican lawmakers have opened an investigation into hiring decisions at the U.S. SEC under chair Gary Gensler, following accusations that political leanings impacted recruitment.
A letter signed by Republican lawmakers Patrick McHenry, James Comer, and Jim Jordan stated that the Committees on Judiciary, Financial Services, and Oversight and Accountability had begun the inquiry under the Civil Service Reform Act of 1978.
Recently, the Committees learned that the SEC may be hiring civil service employees based on their political affiliations. We write to request relevant documents and information regarding these allegations.
Letter notifying SEC on hiring investigation
The trio of U.S. Representatives requested documents relating to SEC applicant consideration, employment, termination, and staff transfers. According to the letter, the SEC has until 5 p.m. ET on Sept. 24 to comply.
Top GOP lawmakers investigate Gensler’s hiring at SEC | Source: X
SEC under heat as crypto fine skyrocket
The document signaled another blow against Gensler during his time as SEC chair. Digital asset industry stakeholders and pro-crypto legislators have also accused Gensler of ambiguous practices.
According to the web3 community, Gensler and the SEC have adopted an enforcement-first approach to regulation. Some have even argued that the agency lacks constitutional authority to oversee crypto. Eric Turner, Ryan Selkis’ successor at Messari, criticized the regulator over its $1.5 million settlement with eToro.
Chair Gensler publicly stated NEW rules were needed for digital assets, but, later switched his position to the LIE that existing rules would be workable.
Since then, he’s spent most agency resources fighting for jurisdiction, rather than protecting investors.
Crypto regulations have become a recurring focus in Washington and U.S. jurisdictions. A bipartisan bill known as the Financial Innovation and Technology for the 21st Century Act was passed in the House of Representatives, despite opposition from the White House.
If passed by the U.S. Senate, the Commodity Futures Trading Commission would assume a large portion of crypto oversight. FIT 21 places digital asset exchanges like Binance and Coinbase under the CFTC’s purview.
CoinFlip has partnered with prominent convenience store chain Yesway to deploy cryptocurrency ATMs across its shops in the United States.
CoinFlip announced on Sept. 12 the deployment of its digital currency kiosks, commonly referred to as “bitcoin ATMs,” to 45 Yesway and Allsup store locations across the U.S. states of Texas, South Dakota, New Mexico, Wyoming, and Iowa.
Yesway, one of the fastest-growing convenience store chains in the U.S., operates over 435 locations across nine states. The company includes two brands: Yesway and Allsup’s, which became part of its portfolio following a 2019 acquisition.
The partnership aims to provide Yesway customers in these states “a convenient, simplified, and secure way to buy and sell” eight different cryptocurrencies, including Bitcoin, according to Josh Allen, Group VP of Global Kiosks and International at CoinFlip.
CoinFlip offers crypto ATMs, also called kiosks, with touchscreen interfaces that allow users to buy and sell cryptocurrency directly using cash. The firm currently offers its cryptocurrency teller machines across eight countries other than the U.S. and is the second-largest crypto ATM provider, accounting for 13.6% of all crypto ATMs globally.
Last month, the company completed its North American expansion with the launch of cryptocurrency ATMs in Mexico. The firm rolled out 20 new ATMs across Mexico City, placing them in high-traffic spots like shopping centers and coffee shops.
Crypto ATM growth spurs illegal activities and regulatory action
As of Sept. 11, there are 38,260 crypto ATMs across the globe, and the number has been steadily rising since July 2023, although it is yet to reach its December 2022 high of nearly 40,000.
The growing crypto ATM market has brought with it a surge in fraud and scams. According to the Federal Trade Commission, losses related to such schemes have soared nearly tenfold from 2020 to 2023, surpassing $65 million in just the first half of 2024, with older adults facing the most risk.
Meanwhile, in the United Kingdom, the Financial Conduct Authority has ruled that all crypto ATMs operating in the country are illegal unless registered with the watchdog. The regulator recently marked its first prosecution in this effort by charging an individual for running a network of unregistered crypto ATMs.
