Exchange Risk

Gemini cryptocurrency exchange is facing its biggest crisis since its IPO, as it has been accused of providing false information in its listing documents, causing its stock price to plummet 80% and significant losses. The company has announced a 25% workforce reduction and withdrawal from multiple international markets, sparking serious market concerns about its operations. This incident may also impact the listing process of future crypto enterprises.

South Korean police arrested 19 members of a fraud ring suspected of money laundering and seized approximately 6 billion won in criminal proceeds. The gang used an unregistered virtual asset exchange to convert fraud cash into USDT and transfer it overseas, with money laundering amounts reaching hundreds of billions of won.

Seoul police uncovered a money laundering case involving an unregistered virtual asset exchange, arresting 19 members with suspected proceeds totaling hundreds of billions of won. The group converted cash obtained from telecommunications fraud into Tether (USDT) and transferred it overseas. Police seized approximately 6 billion won in assets.

A subdomain page of a certain CEX is requesting users to input their wallet mnemonic phrases, raising concerns from security researchers who view this practice as a serious risk. Analysts point out that the related help documentation has been removed, warning that the page could potentially be exploited for malicious attacks.

The FTX Bankruptcy Estate will distribute $2.2 billion to creditors on March 31st, marking the fourth distribution since 2025, with cumulative payouts reaching $10 billion. Compensation is calculated based on cryptocurrency asset values at the time of claim filing in 2022, which has sparked creditor dissatisfaction as actual asset values have risen significantly. Additionally, FTX founder Sam Bankman-Fried faces imprisonment, with speculation about potential pardons. A fifth distribution is planned for 2026.

Taiwan cryptocurrency exchange BITGIN involved in money laundering case. Among 10 defendants, the core suspects are the Zhang siblings, allegedly using the exchange to cover for a fraud ring laundering 150 million Taiwan dollars. Defendants include a lawyer and the actual operator. The case involves multiple money flows and offshore accounts that hindered investigations. Zhang Yuting previously guided police in tracing cryptocurrency but ultimately became an accomplice to fraud. The case remains under trial.

Israeli journalist Fabian received death threats after reporting on Iranian missiles landing. Losers who bet $14 million on prediction market Polymarket became dissatisfied, even fabricating screenshots to apply pressure. The incident reveals potential risks of prediction markets, suggesting that financial incentives may lead to illegal behavior and increased manipulation phenomena.

BlockFills filed Chapter 11 after reporting $50–$100M in assets against $100–$500M in liabilities. The firm suspended client withdrawals in February as liquidity pressures and a $75M loss emerged. A Dominion Capital lawsuit alleging asset misappropriation led to a court order freezing

Well-known cryptocurrency broker BlockFills suspended customer withdrawals in February due to the cryptocurrency market crash and filed for Chapter 11 reorganization with the Delaware bankruptcy court. The company's liabilities range between $100 million and $500 million, with major creditors including SBI VC Trade and Nexo Capital. BlockFills hopes to preserve enterprise value and enhance stakeholder returns through supervised reorganization.

Blockfills has filed for voluntary Chapter 11 bankruptcy protection on March 15, 2026, after pausing deposits and withdrawals over financial concerns since Feb. 11. A Protracted Liquidity Crisis Institutional cryptocurrency trading firm Blockfills has officially filed for voluntary Chapter 11 ban

South Korea's financial intelligence unit imposed a 6-month partial shutdown and a 368 billion won fine on a certain CEX for violating anti-money laundering obligations. The inspection found numerous regulatory violations and customer identification issues. During this period, existing user transactions were not affected, but virtual asset transfers for new users were restricted.

BlockFills filed Chapter 11 after reporting $50–$100M in assets against $100–$500M in liabilities. The firm suspended client withdrawals in February as liquidity pressures and a $75M loss emerged. A Dominion Capital lawsuit alleging asset misappropriation led to a court order freezing

The Seoul Central District Court in South Korea rejected a motion for a preliminary injunction filed by the Flow Foundation and Dapper Labs against three exchanges, supporting their termination of FLOW trading. The court determined that there was insufficient evidence and prioritized investor protection. FLOW remains tradable on Korbit, but has been delisted from the other three exchanges.

Institutional crypto trading and lending firm BlockFills has filed for Chapter 11 bankruptcy protection in the United States, marking the latest setback for the digital asset lending sector after weeks of operational turmoil. In a statement shared on X on March 16, the company said that after

Chicago-based cryptocurrency trading company BlockFills and its parent company Reliz Ltd. recently filed for Chapter 11 bankruptcy protection with U.S. courts due to ongoing financial difficulties and liquidity issues. The company's assets are estimated between $50 million and $100 million, while liabilities reach $500 million, indicating severe financial pressure. The company previously suspended customer deposit and withdrawal services due to liquidity shortages and faced court-imposed asset restrictions due to litigation over misappropriation of funds. The bankruptcy filing aims to reorganize cash flows and maintain transparency. This incident highlights structural vulnerabilities in the cryptocurrency lending market.

BlockFills, a Chicago-based cryptocurrency OTC trading platform, has filed for Chapter 11 bankruptcy protection due to $75 million in lending losses and has suspended customer withdrawals, leaving approximately 2,000 institutional clients in distress. Following the CEO's departure, creditors have filed lawsuits, the court has frozen certain assets, and experts believe the company is headed directly toward insolvency.

On March 15th, a suspected hacker address received 7,400 ETH from Tornado Cash, orchestrating liquidation events for CAKE and THE collateral that resulted in approximately $2.15 million in losses for Venus. The address manipulated THE price through complex operations, ultimately leading to the liquidation of its collateral on Venus, though substantial borrowed funds remain unpaid. Analysis suggests this event may have been a strategy employed to profit on a certain CEX.

Gate News reports that on March 15, Venus Protocol issued a security announcement stating that during the investigation of abnormal activity in the THE liquidity pool, preventive measures were taken to prevent further misuse, and all borrowing and withdrawal operations of THE tokens were immediately suspended. This measure will remain in effect until the investigation is concluded. Venus Protocol stated that other markets were unaffected and will continue to operate normally.

Taiwan prosecutors indicted cryptocurrency exchange "BiJing" and 10 other individuals, including its operators, for allegedly collaborating with fraud rings to commit fraud and money laundering involving 46 victims and over 150 million yuan in fraudulent amounts. The Zhang siblings may face up to 12 years imprisonment.

A $50M AAVE swap failed due to a significant price impact, despite the user confirming slippage warnings. Aave will refund $600K in fees, highlighting the need for improved user protections in DeFi trades, while CoW Swap functions correctly amid extreme market conditions.