Exchange Risk

Loopscale’s declaration is not directly related to Drift. Most funds are secure, with some indirect exposure. Deposits in the SOL Genesis Vault will fully reimburse users; deposit and withdrawal functionality is temporarily disabled, and will be reopened once services are restored.

Decentralized exchange Drift Protocol was hacked on April 2, resulting in losses of up to $280 million, becoming one of the largest DeFi security incidents in the Solana ecosystem. The attacker exploited a multisig vulnerability to obtain administrator keys and quickly transferred assets. Drift has paused deposits and withdrawals and has promised to continue updating the incident investigation. Security experts noted that this incident highlights the risks of high-privilege key management for DeFi protocols, urging stronger security measures to protect users’ assets.

Gate News message, April 2, a certain CEX issued a Drift (DRIFT) token warning notice. For the purpose of protecting users, member companies of the Digital Asset eXchange Alliance (DAXA) may take measures such as issuing warnings, designating trading warning assets, or terminating trading support.

ZachXBT criticized Circle for not taking action in the Drift hacking incident, with millions of USDC moved from Solana to Ethereum. Circle has frozen part of its hot wallets, but progress has been slow to resume. He says Circle is a bad actor in the industry.

On April 2, on-chain monitoring firm PeckShield warned that HyperEVM could face a major outage, with blocks and transactions coming to a halt, impacting users’ transaction confirmations and smart contract interactions. The official status page, however, shows “All Systems Operational,” reflecting insufficient monitoring of HyperEVM layer conditions. This outage exposed issues with the new mainnet’s early stability; the specific causes are pending an official announcement.

A South Korean cryptocurrency exchange announced that it will postpone its IPO until after 2028 due to the need to improve internal controls and accounting policies, and it is still in the preparation stage. Although it is expected to generate $43 billion in revenue in 2025, internal and regulatory issues have impacted the IPO process.

Magic Eden is discontinuing its wallet app, transitioning to an export-only mode, which means users must export their private keys to avoid losing access to their funds. This change emphasizes the importance of self-custody and key preservation for cryptocurrency users.

Gate News message, April 1, UX Chain’s official announcement stated the launch of a platform shutdown plan. According to the announcement, users must clear all outstanding positions before the platform begins full liquidation on April 30. The protocol is expected to be completely shut down by May 15. UX Chain stated that it will use reserve funds and fiscal funding to cover the protocol’s funding shortfall, and specific details will be published in the UX Governance Forum.

Gauntlet's post states that after Resolv Labs experienced a vulnerability, they did not propose any remediation measures. They have already removed multiple vault markets, involving approximately $11.9 million in liquidity, and plan to establish a claims contract to recover the assets.

Magic Eden announced that its native wallet will completely stop providing services on May 1, 2026. Users must export their private key or seed phrase before the deadline; otherwise, they will lose access to their assets. Recently, Magic Eden has continued to scale back its business, pivoting to focus on the Solana ecosystem and the iGaming platform Dicey, and has adjusted the ME tokenomics model to connect it with platform revenue.

The NFT marketplace Magic Eden announced that its native crypto wallet will enter “withdraw-only” mode starting April 1, and will fully stop operating on May 1. Users must withdraw their private keys or seed phrases before May 1; otherwise, they will permanently lose their assets. The wallet has been delisted and cannot be downloaded again. This shutdown is part of Magic Eden’s business transformation, shifting its focus toward crypto entertainment. The ME token incentive program is not affected, but the price is near its historical low.

Crypto firms Archblock, TrustToken, and TrueCoin have filed for bankruptcy due to financial devastation after Techteryx failed to pay invoices and was defrauded by an Eastern European criminal group. The company has also been involved in multiple legal disputes, facing tax issues and high-risk investment losses, highlighting potential risks in the stablecoin industry.

Coinbase faces renewed scrutiny regarding the delayed listing of XRP, as Ripple's CTO claims the exchange held back the token due to a disputed listing fee. The allegations suggest financial negotiations, rather than regulatory concerns, influenced the situation.

Binance is increasing transparency in token market-making by requiring projects to disclose their market maker's identity and contract specifics. It is banning profit-sharing and guaranteed-return arrangements, and imposing strict guidelines on token lending agreements to prevent unfair trading practices.

A short-seller report by Muddy Waters accuses SoFi’s management of inflating profits, taking bonuses, and claims that its $312 million borrowing was incorrectly recorded as loan sales, potentially leading to a restatement of financial data and shareholders facing a 15% dilution risk. The report says the accounting treatment does not align with the role described by JPMorgan.

The current price of the SIREN token is $1.80, with a 24-hour increase of 16.46%. The project SirenAI combines AI and blockchain to provide smart investment and decentralized finance solutions. However, the token is highly concentrated in a few addresses, raising market risks, and the controlling party is suspected to be the well-known investment firm DWF Labs. Investment should be approached with caution.

Hackers are selling the personal information of 1.5 million users of a certain CEX under the name PexRat on the dark web. The data was obtained by bypassing the captcha mechanism and using credential stuffing. Affected users are facing high risks. The exchange has recently seen a surge in OTC trading volume and has encountered a data security crisis.

The UK has imposed new sanctions on Southeast Asian scam networks, naming Chen Zhi and his long-time collaborator Hu Xiaowei, and sanctioning the cryptocurrency exchange "New Coin," alleging that it supports fraudulent activities.

South Korea’s banking industry is actively strengthening cooperation with cryptocurrency exchanges to deal with constrained loan growth and to seek new profit opportunities. Several banks have established partnerships with exchanges, despite historical incidents involving mistaken Bitcoin airdrops. Regulators plan to expand their regulatory authority, which could intensify competition among banks.