Arbitrum Keeps $59M After Users Miss Claim Deadline

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Abitrum Treasury Richer By $59M As Users Miss Claims Deadline

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.

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. 

However, they were reportedly required to pay an administrative fee of 980 USDT. 

JPEX was also a platinum sponsor of the recent Token2049 Singapore event, the status worth as much as $70,000

JPEX eventually suspended withdrawals from the platform last week, saying that due to “unfair treatment by relevant institutions in Hong Kong towards JPEX […] and a series of negative news, our partnered third-party market makers have maliciously frozen funds. 

Hong Kong police have nevertheless arrested 11 people in connection with the JPEX scandal, including social media influencer Joseph Lam Chok. 

The suspects are facing charges of fraud and operating an unlicensed virtual assets exchange. 

In response to the scandal, the SFC issued a warning to the public about the “risks of dealing with unregulated cryptocurrency exchanges.” 

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 “,” 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.

Luke Baldwin

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