Crypto Rewind 21: Dutch broker LiteBit shuts down, Ledger under fire

A few weeks ago, the crypto market was still dominated by explosive price increases, but last week the fun was largely over. Instead, many cryptos have fallen slightly. Wallet manufacturer Ledger and the bankruptcy of even more crypto exchanges were central last week. The biggest news was probably the allegations that Binance took.

Ledger postpones controversial emergency service

French hardware wallet maker Ledger announced a new service last week that allows you to restore access to your coins even if you lose your hardware wallet data. The seed phrase or recovery phrase can be removed from the device with a new subscription service.

But this caused a lot of controversy, because Ledger’s customers want you to have no way to ‘crack’ the wallets unless you have the seed phrase. Ledger has already made it clear that it can be trusted and that all panic is completely unnecessary, but that was not enough to restore calm. That is why it decided last week to postpone the availability of the service.

Ga single hardware wallet is safe

Meanwhile, sales for competitor Trezor are going very well, they have even increased by 900% in one week. So many people have switched from Ledger to Trezor out of fear, although last week it also became clear that Trezor is not sacred either. The crypto security company Unciphered claims that all hardware wallets can be hacked. The company demonstrated this by breaking the security of a Trezor Model T.

LiteBit and other exchange close doors

The market for hardware wallets had actually grown considerably as many major centralized crypto companies went bankrupt in the past year. Unfortunately, this trend has not yet come to an end. For example, both the Dutch Litebit and the Asian Hotbit announced last week that they would close their doors.

Is Binance misusing customer funds?

Binance is a regular source of controversy. Last Wednesday, Reuters wrote that Binance would have mixed user funds with its own capital for two years. Thus, it could in fact use leverage for its own purposes. It would also have an extremely complicated corporate structure, according to Reuters, that is to evade taxes. Binance denied the allegations and called Reuters’ story a 1,000-word conspiracy theory.

Chinese television talks about crypto

There is also special news from China. It’s no secret that crypto trading and mining are almost completely banned in China, but that hasn’t stopped Chinese state television channel CCTV from talking about new crypto regulations in Hong Kong for 98 seconds. This would enable the Chinese government to indirectly still be an important player in the crypto industry.

Meanwhile, crime in China is not standing still either. Many producers of the drug fentanyl are located in this country. This drug has been a major killer in the United States for years, and it turns out that crypto is an important transaction mechanism between manufacturers in China and merchants in the US.

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