Arbitrum Keeps $59M After Users Miss Claim Deadline

In a surprising turn of events, Arbitrum keeps $59M after users failed to meet the claim deadline for their tokens. This situation has sparked widespread discussion within the cryptocurrency community, as many investors and users grapple with the consequences of missing out on their potential claims. As Arbitrum keeps $59M, understanding the reasons behind this and the implications for both users and the broader crypto ecosystem is crucial for anyone involved in digital asset management.

The Arbitrum Foundation has reportedly transferred 69 million unclaimed ARB tokens (worth $59 million) to the network’s treasury after the claim period for the tokens ended over the weekend. 

The unclaimed tokens represent 0.69% of ARB’s total supply of 10 billion. The move comes as a result of a near-unanimous community vote to redirect the unclaimed tokens to the treasury immediately instead of a time-locked smart contract. 

Data from a Dune Analytics dashboard shows that 93% of eligible users had claimed the tokens. 

ARB tokens were airdropped to eligible users in late March to a huge community response – with over 42 million tokens claimed by 23,000 unique users hours after going live. 

Airdrops refer to the unsolicited and/or automatic transfer of tokens from projects to crypto users. 

While the claims deadline was set on Sept. 24 after ARB went live,  governance vote in August saw Arbitrum community member yoav.eth propose that these tokens be transferred to the Arbitrum treasury – instead of being locked forever. 

The vote received 99.96% approval from token holders. 

Arbitrum’s treasury now holds nearly $3 billion worth of ARB tokens following Sunday’s transfers, blockchain data shows.

The fact that Arbitrum keeps $59M from unclaimed tokens highlights a crucial issue in the cryptocurrency space: the importance of timely participation and communication. Many users were unaware of the claim deadline, which resulted in a significant amount of tokens remaining unclaimed. This incident underscores the need for platforms to ensure clear communication with their user base and for users to stay informed about important dates and requirements. As Arbitrum keeps $59M, it serves as a lesson for both parties about the significance of deadlines in the crypto world.

Arbitrum keeps $59M due to a variety of factors, including the complexity of the claim process and the lack of awareness among some users. For many in the crypto community, this situation is a wake-up call to the importance of understanding the intricacies of token distribution events. As Arbitrum keeps $59M, users are reminded of the necessity to stay vigilant and proactive in managing their crypto assets, ensuring they do not miss out on valuable opportunities.

The decision that Arbitrum keeps $59M has led to mixed reactions within the community. Some argue that the unclaimed funds should be redistributed or made available in a future claim window, while others believe that the responsibility lies with the users who missed the deadline. This debate raises important questions about the ethics and responsibilities of both crypto platforms and their users. As the community digests the news that Arbitrum keeps $59M, discussions about fair practices and user responsibilities continue to unfold.

The fact that Arbitrum keeps $59M also has implications for other crypto platforms and their future token distributions. This incident may lead to changes in how platforms communicate with users and manage unclaimed tokens. It also highlights the potential need for regulatory guidelines to ensure transparency and fairness in the distribution of digital assets. As the industry evolves, the lessons learned from the situation where Arbitrum keeps $59M could influence the development of best practices and standards across the crypto ecosystem.

In conclusion, the scenario where Arbitrum keeps $59M due to missed claim deadlines is a significant event in the cryptocurrency landscape. It underscores the importance of effective communication, user awareness, and adherence to deadlines in the management of digital assets. As the crypto community reflects on the implications of this incident, it serves as a reminder of the need for diligence and proactive engagement in the fast-paced world of cryptocurrency investments. Understanding the factors that led to Arbitrum keeping $59M can help stakeholders better navigate the challenges and opportunities in this dynamic market.

Hong Kong Financial Watchdog to Bring JPEX “Wrong-Doers To Justice”

Following the recent JPEX scandal, Hong Kongs Securities and Futures Commission (SFC) has unveiled a series of new measures aimed at enhancing transparentcy and security in the crypto industry. 

The SFC said it would publish a list of all licensed, deemed licensed, closing down, and application-pending virtual asset trading platforms (VATPs) to better help members of the public identity potentially unregulated VATPs doing business in Hong Kong. 

The SFC stated, 

“The JPEX incident highlights the risks of dealing with unregulated virtual asset trading platforms (VATPs) and the need for proper regulation to maintain market confidence. It also shows that dissemination of information to the investing public through the Alert List, warnings and investor education can be further enhanced to help members of the investing public better understand the potential risks entailed by suspicious websites or VATPs.” 

The ongoing JPEX incident, allegedly Hong Kong’s biggest-ever financial fraud suspected to have ensnared at least 2,305 victims, involving approximately HK$1.43 billion ($128.9 million), erupted earlier this month after the Dubai-based crypto exchange was accused of operating without a license in Hong Kong, where it had a large customer base. 

The SFC also highlighted that certain online influencers and over-the-counter virtual asset money changers (OTC shops) had disseminated false information by claiming that JPEX had submitted an application for a VATP license. 

In the days that followed, anxious investors hurried to withdraw their virtual assets, only to discover that they could only withdraw a maximum of 1,000 USDT, the dollar-pegged stablecoin issued by Tether. 

The masterminds behind the JPEX scandal are still at large, however, while the exchange itself – citing Hong Kong’s new crypto regulation regime, which purportedly convinced it to shift its development focus to Asia – stated that “it has been preparing to comply with the cryptocurrency regulatory system before the end of the grace period for the license system” only to find out that it “was subjected to continuous unfair treatment.”

Crypto Exchange Upbit Stems Fake APT Token Flood, Resumes Services

South Korean crypto exchange Upbit has reportedly resumed deposit and withdrawal services for the APT token after it temporarily paused them due to a technical error that saw a scam APT token incorrectly being recognized as the real deal. 

The issue has since been fixed. However, Upbit warned users that there could be delays in processing deposits and withdrawals and possible temporary price fluctuations in the APT tokens as compared to other exchanges. 

The newly created fake APT token was called “ClaimAPTGift.com,” and made its way to 400,000 Aptos wallets after its creation on September 21. 

The fake token was likely part of a typical token airdrap scam, in which users are airdropped tokens that contain links pointing unsuspecting users to phishing websites. 

However, a reported failure by Upbit to properly verify the source code of the scam tokens led to the exchange recognizing the fake tokens as real Aptos tokens. Various Korean users reported they had received APT without sending themselves any, according to X user Definalist. 

“It seems that during the process of reflecting APT coin deposits, there was a failure to check the type arguments, and all same functions transfers were recognized as the same APT native token.” 

This reportedly led to users who sold the fake APT tokens being able to walk away with funds. Upbit’s customer center has started to request refunds from users who sold the fake APT tokens. 

The issue has since been fixed. As of September 24 at 11:00 pm local time, Upbit confirmed it had resumed deposits and withdrawals after completing the wallet inspection. 

“The action against the abnormal deposit attempt has been completed, and there is no problem with your Aptos transaction,” it said in a statement. 

It warned, however, that there could be delays in processing deposits and withdrawals and possible temporary price fluctuations in the APT tokens as compared to other exchanges. 

APT has been trading at $5.31 over the last 24 hours; however, the price of APT on Upbit is around $5.56, according to CoinGecko.