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Crypto community slams WazirX’s ‘socialized losses’ plan after hack

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WazirX, one of India’s largest cryptocurrency exchanges, is facing intense criticism over its controversial plan to address the fallout from a recent $230 million hacking incident. The proposed strategy involves socializing the losses among its user base, a move that has sparked significant backlash from the crypto community.

The breach, which occurred last month, resulted in substantial losses for both WazirX and its users. In response, the exchange has unveiled a recovery plan that includes redistributing the financial burden of the hack across its customer base. This approach, which involves allocating a portion of the losses to users’ accounts, has been met with strong disapproval from the community.

“Users are understandably upset about the idea of having to share the financial impact of this hack,” said Ravi Kumar, a cryptocurrency analyst. “The plan raises serious concerns about fairness and the responsibilities of exchanges in protecting user assets.”

WazirX’s plan aims to mitigate the financial strain on the company by spreading the cost of the losses, which has been criticized for potentially undermining user trust. The exchange has defended the approach, arguing that it is necessary to stabilize operations and ensure long-term security. They have pledged to enhance their security measures to prevent future breaches.

In addition to the backlash from users, the plan has attracted scrutiny from regulatory bodies and industry watchdogs. The situation underscores broader issues within the cryptocurrency sector regarding security practices and the protection of user assets.

WazirX has announced that it will hold a series of meetings with affected users to address concerns and explore alternative solutions. The exchange is also working on developing a more comprehensive security strategy to restore confidence among its user base.

The controversy highlights the ongoing challenges faced by cryptocurrency exchanges in managing security risks and maintaining user trust in an increasingly complex and volatile market. As WazirX navigates the fallout from this incident, the industry will be watching closely to see how it resolves these critical issues and whether it can rebuild its reputation.

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US lawmakers advance anti-CBDC bill

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U.S. lawmakers have voted to advance a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC), marking a major step in the political pushback against the development of a digital dollar.

The bill, which passed through the House Financial Services Committee, would prohibit the Fed from directly offering accounts or issuing a CBDC to individuals, citing concerns over surveillance, privacy, and government overreach.

Supporters of the legislation argue that a digital dollar could pose significant risks to civil liberties, enabling real-time tracking of consumer transactions and expanding federal control over personal finances. They view the bill as a safeguard against what they describe as a “surveillance-style” monetary system.

Opponents of the bill, however, argue that restricting CBDC development could hinder U.S. innovation and global competitiveness in the evolving digital financial landscape.

The legislation now moves closer to a potential floor vote in Congress. Its progress underscores growing ideological divisions over the future of money in the United States, with CBDCs emerging as a new front in the broader debate over digital governance, financial freedom, and the role of government in the digital age.

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Gemini to open Miami office after judge stays SEC case

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Crypto exchange Gemini has opened a new office in Miami, reinforcing its commitment to expanding operations despite pausing its plans for an initial public offering (IPO) amid a continuing legal battle with the U.S. Securities and Exchange Commission (SEC).

The Miami office signals the company’s long-term vision for growth in key U.S. markets, even as regulatory uncertainty clouds the broader crypto landscape. The expansion comes at a time when Gemini is facing heightened scrutiny from the SEC over its Earn program, which the regulator alleges involved unregistered securities.

While the IPO remains on hold, Gemini continues to strengthen its infrastructure and team, focusing on user growth, compliance, and regional outreach. The Miami hub is expected to play a strategic role in those efforts, leveraging the city’s growing status as a U.S. crypto hotspot.

Co-founders Cameron and Tyler Winklevoss remain vocal about the need for clear regulatory frameworks and have emphasized that Gemini will continue to fight for fair treatment while building responsibly in the U.S. and abroad.

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Coinbase Institutional files for XRP futures trading with CFTC

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Coinbase Institutional has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to offer XRP futures trading, marking a significant move toward expanding institutional access to Ripple’s native token.

The filing, submitted through Coinbase Derivatives, signals the exchange’s intent to list XRP futures contracts in a regulated environment. If approved, it would allow institutional investors to gain exposure to XRP through derivative products, a key step in broadening the token’s presence in traditional financial markets.

This development comes amid a gradually improving regulatory climate for XRP, following a partial legal victory for Ripple in its ongoing case with the U.S. Securities and Exchange Commission (SEC). The outcome gave XRP a degree of legal clarity, opening the door for exchanges and financial institutions to re-engage with the asset.

Coinbase’s push to expand its derivatives offerings also aligns with its strategy to build a more robust institutional platform. Approval from the CFTC would position the exchange to capitalize on growing demand for regulated crypto investment vehicles.

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