Weekly News Highlights | Binance and Nansen Launch Layoff Plans; BKEX and Others May Have Suspended Operations Due to Suspected Money Laundering

Organizer: Cookies, ChainCatcher

1. Upbit Operator Dunamu Q1 Financial Report: Operating Profit Approximately $160 Million, Down Over 26% Year-on-Year

The latest quarterly report released by Dunamu, the operator of the South Korean cryptocurrency exchange Upbit, shows that the consolidated operating revenue (sales) for the first quarter of 2023 was 304.8 billion KRW (approximately $231 million), a decrease of 28.6% compared to the same period last year; operating profit was 211.9 billion KRW (approximately $160 million), down 26.3% from the previous year (287.8 billion KRW); net profit was 326.3 billion KRW ($247 million), an increase of 54.9% year-on-year. (Source link)

2. Binance Responds to Layoffs: Reassessing Key Positions for Suitable Talent, New User Registrations Remain Strong

According to reports from Wu, citing multiple sources, Binance has initiated layoffs, although the exact percentage is still uncertain. Binance has approximately 8,000 employees, and the compensation plan will be tailored to different local circumstances. Market rumors suggest that the layoff rate in June may be around 20%. A few departments are still continuing to hire. This round of layoffs may be related to the overall poor market conditions and Binance's previous significant expansion in personnel.

In response to the news of layoffs, Binance representatives stated: "We regularly review how to best allocate our talent to teams with appropriate resources. Sometimes, this inevitably leads to the dismissal of some underperforming or culturally unsuitable employees. However, this is not a layoff; it is a reassessment of whether we have the right talent and expertise in key positions, and we will still seek to fill hundreds of vacant positions."

"We will include a review of certain products and business units to ensure our resources are appropriately allocated to reflect the changing needs of users and regulators. Serving our users remains our top priority, and new user registrations remain strong."

According to ChainCatcher, in addition to Binance's layoffs, blockchain data platform Nansen has laid off 30%, and Temasek has cut the salaries of senior management and the investment team responsible for FTX. (Source link)

3. Multichain: Unable to Contact CEO and Obtain Necessary Server Access for Protocol Maintenance

According to ChainCatcher, Multichain tweeted that they are currently unable to contact the CEO and obtain the necessary server access for protocol maintenance. Currently, there are issues with the scanning node network of Router2 and Router5, but the team does not have maintenance permissions, so cross-chain services for the affected chains have been paused on the UI.

The affected chains currently include Kekchain, PublicMint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora, and Planq. (Source link)

4. BKEX: Platform to Suspend Withdrawals Due to User Funds Involved in "Money Laundering" to Cooperate with Police Work

BKEX announced that user funds on the platform are involved in "money laundering," and BKEX is currently cooperating with the police to collect evidence, thus suspending withdrawals to facilitate this work. The BKEX team will fully cooperate with regulatory investigations and do their utmost to restore normal operations of the exchange. (Source link)

5. Offshore RMB Stablecoin CNHC Issuer CNHC Group's Shanghai Office May Be Judicially Seized

The issuer of the CNHC stablecoin, which is pegged to the offshore RMB at a 1:1 ratio, CNHC Group (now renamed Trust Reserve), has vacated their office in a building in Pudong, Shanghai, with a notice posted on the door stating "Judicial Seizure, No Destruction Allowed," dated May 29, 2023.

Multiple sources have revealed that the team has been taken away by the police, and some employees' families have been notified. According to official information, Trust Reserve's products include the offshore RMB stablecoin CNHC and the HKDC stablecoin. Insiders indicate that the company's stablecoin business has not yet been widely promoted, but the company has other cross-border payment businesses, which may be implicated due to the payment business.

According to the crypto data platform RootData, in March of this year, the offshore RMB stablecoin project CNHC completed a $10 million A+ round of financing, led by KuCoin Ventures. Both CNHC and HKDC are issued on the Ethereum and Conflux networks, and according to the official website, "CNHC is an ideal tool for cross-border payments between China and developing countries." (Source link)

6. Bali Cracks Down on Foreign Tourists Using Crypto Payments

The Bali government will crack down on foreign tourists using cryptocurrency as a payment method in hotels, restaurants, tourist attractions, shopping malls, and other places.

Bali Governor Wayan Koster stated: "Foreign tourists engaging in improper behavior, participating in activities not permitted under visa regulations, using cryptocurrency as a payment method, and violating other regulations will be dealt with firmly," adding, "Severe measures include deportation, administrative sanctions, criminal penalties, closure of business premises, and other severe sanctions." (Source link)

7. Data: Offchain Labs Has Distributed 142.6 Million ARB to 16 Addresses

According to ChainCatcher, monitoring by Spot On Chain shows that in the past two days, Offchain Labs addresses starting with 0x1e70 have redistributed 142.6 million ARB (approximately $165.5 million) to 16 addresses. Among them, 10 addresses still hold 106.5 million ARB ($123.6 million); 4 addresses returned 50.1 million ARB ($58.1 million) to Offchain Labs; an address starting with 0x06fe transferred 15,000 ARB ($17,400) to Binance. (Source link)

8. OKX Releases BRC-30 Proposal to Introduce Staking Mechanism for BRC-20 Tokens

According to ChainCatcher, OKX's official website has released the BRC-30 proposal, which is an enhanced version of the BRC-20 protocol, adopting the design principles of BRC-20 and introducing rights operations such as deposits, minting, and withdrawals.

The BRC-30 proposal aims to introduce a staking mechanism for BRC-20 tokens and Bitcoin on the Bitcoin network. Users can stake their own BRC-20 tokens and Bitcoin and receive corresponding BRC-30 tokens in return. (Source link)

9. RootData: $758 Million Raised in the Crypto Sector in May, Down 66.2% Year-on-Year

According to data from RootData, the crypto sector completed a total of 94 financing rounds in May 2023, with a total financing amount of $758 million. The monthly financing amount decreased by 66.2% year-on-year (compared to $2.245 billion in May 2022) and decreased by 6.9% month-on-month (compared to $815 million in April 2023).

It is reported that the largest financing in the crypto sector in May occurred on May 25, when the cryptocurrency network Worldcoin completed a $115 million Series C financing, followed by the network infrastructure solution Auradine completing $81 million in Series A financing, and wallet-as-a-service provider Magic completing $52 million in strategic financing. (Source link)

10. Data: Bitcoin NFT Protocol Ordinals Has Minted Over 10 Million Inscriptions

Dune data shows that the number of Inscriptions (similar to NFTs) minted using Ordinals has surpassed 10 million, with cumulative fee revenue of 1,578.4611 BTC, approximately $44,143,173. Previously, the total number of Ordinals inscriptions minted surpassed 5 million on May 10.

In addition, Bitcoin Magazine Ventures has launched a Bitcoin ecosystem fund, which has been oversubscribed by $90 million. (Source link)