Singapore-based cryptocurrency exchange Phemex has said that it is "looking into" reports of a hack after one of its hot wallets was drained for $29 million worth of crypto tokens. Crypto security firm Cyvers reported "multiple suspicious transactions" from the Phemex hot wallet across multiple blockchains. The funds were swapped for ether (ETH). "As we look into a report on one of our hot wallets rest assured our cold wallets remain safe and can be checked by everyone here, will post more updates shortly," Phemex CEO Federico Variola wrote on X .
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Frax Finance Proposes $15M Investment in Trump-Led WLFI Ecosystem
Frax Finance (FXS) , a leading decentralized stablecoin protocol, has announced a governance proposal to invest up to $15 million in World Liberty Financial (WLFI) , a DeFi protocol spearheaded by the Trump family . The proposal, published on Frax Finance’s official website, outlines an initial investment of $5 million , with an additional $10 million contingent on the success of the initial integration. This move represents a significant partnership opportunity, aiming to enhance the WLFI ecosystem while expanding Frax Finance’s footprint in decentralized finance (DeFi). To learn more about the innovative startups shaping the future of the crypto industry, explore our article on the latest news, where we delve into the most promising ventures and their potential. Proposal Details: Frax Finance’s WLFI Investment Plan The governance proposal includes the following details: Initial Investment : Frax Finance will commit $5 million to WLFI in the first phase. This funding will focus on integrating Frax’s stablecoin protocol into WLFI’s ecosystem. Conditional Additional Funding : Up to $10 million in further investments will be deployed based on the success of the partnership and its impact on both ecosystems. Ecosystem Integration Goals : Enhance WLFI’s DeFi offerings using Frax’s innovative stablecoin solutions. Foster interoperability between the two protocols to unlock new opportunities for users. Why Frax Finance is Interested in WLFI Frax Finance’s interest in World Liberty Financial stems from several strategic considerations: Expanding DeFi Influence : WLFI’s Trump-led backing and growing prominence position it as a key player in the DeFi market. Mutual Benefits : By integrating Frax’s stablecoin solutions, both protocols can enhance liquidity, attract users, and diversify their offerings. Political and Market Visibility : WLFI’s association with the Trump family brings significant attention, which could benefit Frax Finance by increasing adoption and awareness. What WLFI Brings to the Table World Liberty Financial (WLFI) is a DeFi protocol focused on financial innovation, and its ecosystem provides several benefits for Frax Finance: High-Profile Leadership : Led by the Trump family, WLFI enjoys a unique position in the DeFi space, attracting media and market attention. DeFi Ecosystem Expansion : WLFI’s suite of financial products offers opportunities for integration and co-development. Potential User Base : Collaboration with WLFI may introduce Frax Finance to a broader audience. Potential Challenges and Risks While the proposal offers promising opportunities, it also comes with challenges: Regulatory Scrutiny : WLFI’s Trump-led association may invite heightened regulatory oversight, potentially affecting the partnership. Partnership Success Uncertainty : The success of the integration is not guaranteed, and the additional $10 million investment hinges on achieving measurable outcomes. Market Volatility : Both protocols operate in the volatile crypto market, which could impact the success of their collaboration. The Role of Governance in DeFi Decisions Frax Finance’s governance model empowers its community to vote on proposals, ensuring transparency and decentralization: Community Involvement : Token holders will vote on the WLFI investment proposal. Checks and Balances : Governance ensures that funds are allocated responsibly and in line with the protocol’s long-term vision. Conclusion Frax Finance’s proposed investment of up to $15 million in World Liberty Financial (WLFI) marks a bold step toward fostering collaboration between two prominent DeFi protocols. By committing an initial $5 million and tying further investments to measurable outcomes, Frax Finance demonstrates a strategic approach to expanding its ecosystem while enhancing WLFI’s capabilities. As the DeFi space continues to evolve, partnerships like this highlight the potential for innovation, mutual growth, and greater adoption of decentralized financial solutions. If approved, this collaboration could set the stage for significant advancements in the DeFi sector. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on the latest news, where we delve into the most promising ventures and their potential. FAQs What is Frax Finance’s proposal for WLFI? Frax Finance has proposed a $15 million investment in WLFI, with an initial $5 million to integrate Frax’s stablecoin solutions into the WLFI ecosystem. Who leads World Liberty Financial (WLFI)? WLFI is a DeFi protocol led by the Trump family, aiming to innovate and expand decentralized financial offerings. Why is Frax Finance interested in WLFI? Frax Finance sees WLFI as an opportunity to expand its DeFi influence, enhance liquidity, and benefit from WLFI’s high-profile leadership and ecosystem. What is the structure of the investment? The investment begins with $5 million upfront, with an additional $10 million contingent on the success of the partnership. What are the potential risks of this partnership? Risks include regulatory scrutiny, uncertainty about the partnership’s success, and market volatility. How will the Frax Finance community be involved? The proposal will be subject to governance voting, allowing the community to decide whether to approve the investment. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries. CoinDesk
Scam Alert: Phemex Exchange Halts Withdrawals As Millions Feared Drained
Phemex wallets are likely compromised, with losses above $29 million CoinDesk