Monthly Archive: August 2021

Nearly 3 million people in the United States petitioned for $2,000 a month in stimulus checks

Spark Trader Limited reports:

Nearly 3 million people in the United States have now signed a petition calling for $2,000 a month in stimulus checks to support American families as the epidemic continues to spread.

The petition, first posted on Change.org last year, was started by Stephanie Bonin, a Restaurant owner in Colorado. The petition has been gaining traction, especially since may, when the mutant Delta virus began spreading in the United States.

Spark Global Limited reports:

Spark Global Limited reports:

Bonin wrote in his petition:

“I call on Congress to support families by immediately paying $2,000 per adult, $1,000 per child, and continuing to send regular checks during the crisis. Otherwise, laid-off workers, workers on temporary leave, the self-employed, and workers facing reduced working hours will struggle to pay their rent or make ends meet.”

In his petition, Bonin urged Congress to issue “immediate checks and recurring payments.” She wrote:

“Congress needs to make sure we don’t end up financially broke by doing our part to keep the country healthy.”

But Bonin goes further:

“Another check is not going to solve our problems. As we’ve said since the beginning of this outbreak, people need to know when the next check is coming. The best thing our government can do right now is to give people emergency money every month. Giving Americans a monthly stipend until they can stand on their own two feet could save our communities from financial ruin.”

Three rounds of stimulus checks have been issued since the outbreak began in the United States. Eligible Americans received $1,400 in stimulus checks last March. The Trump administration wrote two more stimulus checks over a nine-month period: one for $1,200 and the other for $600.

It is unclear whether there will be a fourth stimulus check. In May, the White House threw the ball to Congress, saying it would be up to Congress to decide on a fourth stimulus.

However, the petition shows that there is widespread support not just for a new round of stimulus, but for regular stimulus checks. Bonin’s petition received so much support that Change.org included it in its list of 10 petitions to change 2020.

On Wall Street, the biggest bull market in 20 years

Spark Trader Limited reports:

On Friday, data showed that US consumer confidence suddenly fell to its lowest level in a decade.

 

As fears grow over the spread of The Delta and Ramda viruses, large numbers of people are still refusing to be vaccinated against the coronavirus.

 

The stock market, however, was buoyant. On Friday, the S&P 500 closed at an all-time high of 4,468. The index is up 19% so far this year and 100% since its post-outbreak low last year.

Wall Street analysts, meanwhile, haven’t been this optimistic in 20 years.

About 56% of all s&p 500 recommendations are for shares, the highest since 2002.

 

This is not just the CASE in the US but also in Europe, where some 52 per cent of stoxx 600 companies are rated buy or flat, a 10-year high. In Asia, the share jumped to 75 per cent, the highest since at least 2010.

 

Despite worries about the Delta virus, the waning of federal Reserve stimulus and the current renewed geopolitical turmoil in Afghanistan, stocks have not been affected.

Edward Yardeni, president of Yardeni Research and a longtime Wall Street bull, noted that U.S. companies have accelerated the adoption of cutting-edge technology and increased productivity as a result of the pandemic. Edward says the economy is growing at 2 percent now and will grow at 4 percent in the next few years.

In his view, as long as the US avoids another massive economic blockade, the S&P 500 will rise 12 per cent from its current level, despite the challenges.

Todd Jablonski, chief investment officer at Global Asset Allocation, inc., said:

“It is not just financial conditions and low interest rates that are driving demand for risk assets, but fundamentals are expected to improve substantially by 2022.”

Optimism is growing on Wall Street, but desperation is growing on Main Street.

Data points to the Fed as the driving force behind the widening gap between rich and poor. Despite the massive expansion of the Fed’s balance sheet and the surge in asset prices, relatively little translated into wages or corporate after-tax profits, resulting in very little economic growth.

The surge in asset prices is still limited to people with “investable assets,” and about 90% of Americans have not benefited.

A bad start for gold in August, a harbinger of a reversal in September?

Spark Trader Limited reports:

The World Gold Council (WGC) expects gold to shine in September. FX Street analysts are not sure.

In July and August the WGC released two more interesting documents, following three previous reports. The first document is the Gold demand Trends report for the second quarter of 2021. The report shows that gold demand was almost flat in the second quarter (year on year), but fell by 10.4% in the first half of the year. Moreover, inflows into gold ETFs were small in the second quarter and July, only partially offsetting the large outflows in the previous quarter.

As a result, investor sentiment turned positive in the second quarter, which helped gold rebound after the first quarter.

Indeed, as the chart below shows, gold plunged 10% in the first quarter of 2021, followed by a 4.3% rebound in the second quarter, but not enough to offset the hit in the first three months of the year. Gold rose 3.6 per cent in July, but most of that gain was wiped out in August, when it fell 2.1 per cent in a single day on August 6 alone. As a result, gold is down more than 6 per cent so far this year.

How does Goldman Sachs explain the stock market’s record highs?

Spark Trader Limited reports:

Three weeks ago, in the midst of second-quarter earnings, the U.S. stock market was surprisingly slow to break through all-time highs, even as companies posted their strongest earnings season ever. Against this backdrop, there was a quiet shift in the outlook of some big investment banks, including Goldman Sachs.

Goldman sachs was the first to warn the market in late July that stocks were entering their worst seasonal cycle of the year. At one point, Scott Rubner, the bank’s senior trader who tracks market liquidity, went so far as to list 10 reasons why the bank thinks investors should prepare for an August pullback.

Yet the market’s outperformance so far in August has been all the way up to Goldman’s strategists, who have not only avoided the firm’s gloomy outlook but also hit record highs on almost half the days.

Rubner released his latest analysis last week, arguing that the stock market rally is due to one word: retail investors.

“This is perhaps the most important stock market move of 2021 so far,” he explains in his latest Tactical Flow of Funds report.

Non-standard “broken just”, entrusted or commission to take the responsibility, CMB and Daye trust to respond to 500 million products default

Spark Trader Limited reports:

Xin Jizhao, reporter of 21st Century Business Herald in Shenzhen, reported that the default of China Merchants Bank’s daye trust product on commission is not the first trust default in the industry, but it may have the biggest impact among non-standard defaults.

On August 16, China Merchants Bank responded by selling a 500 million yuan trust fund to provide 500 million yuan of financing to Jiutong Foundation Investment Co., LTD. In order to guarantee the performance of jiutong Foundation Investment Co., LTD. ‘s payment obligations, China Fortune Provides an irrevocable joint and several liability guarantee. The trust program expired on August 16, 2021.

“It is indeed against the rules.”

On August 16, China Merchants Bank and Daye Trust respectively responded to a 500 million yuan trust product default.

CMB responded that CMB’s commission product Daye Trust – Junrui no. 15 (Jiutong Land Development) project pooled fund trust plan, the original plan expires on August 14, 2021, credit measures include China Fortune Land Development Co., Ltd. to provide joint liability guarantee. Today, daye trust announced that the product did not receive the repurchase price payable by the financing party, and the guarantor did not perform the guarantee responsibility.

China responded that China happiness since the debt crisis, in order to protect clients’ interests, China merchants, as agencies and product active management of the trust to keep high frequency communication, urging him to do a good job in risk resolve to respect the beneficiary, the beneficiary conference committee vote on whether to join debt, preferred disposal scheme, maximize the interest of the customer.

CMB said it will closely monitor the communication between the active manager daye Trust and the Creditors’ Committee of financial institutions, and urge it to properly resolve issues such as the distribution of trust benefits.

On the same day, the daye Trust product publicity department responded that the company has joined the China Happiness Debt Committee, and everything is being promoted mainly at the pace of the debt committee. The company has done its duty as a trustee, and if there is any progress in the future, the information will be disclosed as soon as possible. “Because the whole industry is also required, just against the rules.”

Previous media reports said that the daye Trust · Junrui 15 project pooled fund trust plan, which was sold by CMB on a commission basis, has yet to distribute interest to investors for the second quarter of 2021. The trust expired on August 14 and investors have yet to receive a clear payment offer. Junrui no. 15 has a guarantor but no collateral, which is mainly “digested” by natural persons of private banks of China Merchants Bank Shanghai Branch and Beijing Branch, and partly undertaken by family trusts of Private banks of China Merchants Bank.

Non – standard “broken just” who to take responsibility

Overdue trust products have already occurred in individual regions and individual companies.

On July 19, the reporter learned that the 21st century economy, “guizhou zunyi sowing obviously by citic trust investment trust accounts receivable flow 2 period” trust plan after six months, the overdue financiers still hasn’t been completed reimbursement, citic trust has appealed to the court and the state development investment and related parties of multiple bank accounts, real estate, equity for property preservation before litigation, etc. Long before Citic Trust, Huarong Trust and Daye Trust sued Bozhou SDIC to the court because of the dispute over loan contract, and bozhou SDIC was also listed as the person subject to enforcement for trust-breaking due to the failure to fulfill the payment obligations ruled by the court.

On July 21, The Chinese capital industrial announcement, before the purchase of 120 million yuan “new era trust · [Heng New 63] collection fund trust plan”. The trust plan principal and part of the interest income are not recovered.

On August 11, media reported that “Minsheng Trust – Zhishin1071 China Jiasengyuan loan project pooled funds trust plan” exploded, and Minsheng Trust has told investors to postpone payment. “Zhishin1071” has a total existing scale of 1.35 billion yuan.

The particularity of Junrui no. 15 project lies in that most of the companies involved are “bigger” and have strong strength, including debtors, trust managers, distributors and other stars in the financial market.

More importantly, “when the trust lending, China Happiness has been in a panic, this background can also approve pure credit loans?” “Admits one industry insider.

Another trust industry also said that China Happiness default for so long, actually expected not to pay. The risks should have been warned.

15 jun farce, public information display, trust products was founded on August 14, 2020, after the establishment of the trust plan, the trustee in accordance with the provisions of the trust documents, the trust funds for the nine connections built to accepting its holdings of accounts receivable, the creditor’s rights of ding xing offers nine through inheritance promise according to the account receivable creditor’s rights transfer and the repurchase contract agreed repurchase of account receivable creditor’s rights. Jiutong Foundation Uses the transfer price of accounts receivable creditor’s rights to supplement daily working capital and subscribe for trust industry guarantee fund.

CMB subsequently issued a public company announcement said that CMB for junrui 15 project collection fund trust plan, the trust plan product issuer and active management of daye Trust. The trust funds will be used to finance 500 million yuan to Jiutong Foundation Investment Co., LTD. In order to guarantee the performance of the payment obligations of Jiutong Land Development Co., LTD., China Fortune Land Development Co., LTD., provides an irrevocable joint and several liability guarantee. The trust program expired on Aug. 16.

Another industry insiders also believe that after the release of the new regulations on asset management, trust companies can not “rigid payment”, but there is a fiduciary responsibility.

The debt crisis of China Fortune Broke out in late January 2021, and news of overdue trust and non-payment of commercial acceptance bills were reported in Succession. On February 1, China Happiness disclosed a debt overdue announcement, acknowledging the existence of overdue debt and other conditions.

However, China Happiness’s debt problems in the 2020 third quarter of the report has emerged. Last year’s third-quarter report showed that the company’s short-term borrowing and debt maturing within one year amounted to 94.02 billion yuan, up 55.6% from the end of the previous year. Long-term loans reached 65.21 billion yuan, an increase of 33.7% over the end of the previous year; There is another bond payable balance of 52.545 billion. While debt has climbed, cash on hand has dwindled. As of the third quarter of last year, its cash on hand was 36.68 billion yuan, down 10 percent from 2019, and its cash-to-debt ratio was just 0.39.

As for trust companies, Article 25 of the Trust Law stipulates: “The trustee shall abide by the provisions of the trust documents and handle trust affairs for the best interests of the beneficiary. The trustee, in managing the trust property, must fulfill his duties and fulfill the obligations of honesty, credit, prudence and effective management.”

As for the commission agencies, the notice on Regulating the Sales Agency Business of Commercial Banks also requires that the commercial banks should rate the risks of the commission products according to such factors as the investment scope, investment assets, investment proportion and risk status of the products. Commercial banks should carry out due diligence on the products to be sold on commission, and should not only take the product approval materials of the cooperative institutions as the basis for product approval.

As for the follow-up disposal of the product default, CMB announced that as of the date of this announcement, Daye Trust has not received the payment due from the financing party, and the guarantor has not performed the guarantee responsibility. Daye Trust has joined the bond Committee of China Fortune Land Co., Ltd. on behalf of the beneficiaries of the trust plan according to the voting results of the beneficiaries of the trust plan. According to the rules of the Debt Committee, the debt resolution plan of each creditor can only be known after the unified debt resolution plan determined by the debt Committee is announced. At present, the debt committee has not announced the debt solution. The company will, from the perspective of safeguarding the interests of the company’s customers, urge the active management party Daye Trust to properly solve the distribution of trust interests.

As of July 31, China Fortune has failed to repay the debt as scheduled with a total of 81.566 billion yuan. In order to resolve the company’s debt risks and accelerate the orderly operation of the company, The company is actively coordinating various parties to discuss a variety of ways to solve the current problem, The company said. Under the guidance and support of the local government, the company is developing a comprehensive risk mitigation plan as soon as possible. At the same time, the Financial institutions Creditors’ Committee is also actively coordinating and pushing forward the company’s debt rolutions, so as to gain the necessary time for the formulation and implementation of a comprehensive solution.

The ticket price of business class to the United States is 100,000 yuan again

Spark Trader Limited reports:

Yesterday, a photo was widely circulated on the Internet. It was said that Chinese students were queuing at Shanghai Pudong Airport to check in for flights to the United States after the United States opened up the entry of foreign students. Some flights were checked in and seen off for as long as kilometers.

Another person who saw them off said they waited in line for check-in at around 9 a.m. and didn’t get their boarding pass until around 1 p.m.

Mid – to late August, just goes to the United States school season. Since August 1, the United States has also lifted its restrictions on international students. Students with F/M visas will no longer be affected by the “travel ban” and can travel directly from China to the United States without a 14-day transit in a third country.

Behind a kilometre long line at Pudong Airport

The reporter understands consulting cathay Pacific aspects, at present from Beijing and Shanghai, through Hong Kong really strong demand, the flight to the United States airport check-in time and queue is very long, one is due to a student there may be a few parents accompanied to the airport check-in, during the outbreak of another shall submit the check-in is a lot more than usual.

According to reporter understanding, at present the study shall check, in addition to show me your ticket itinerary and passport visa, also need Chinese nucleic acid testing report, nucleic acid test report in English, the address and contact information of form in the United States, as well as the inbound and outbound travel check-up report, health declaration, opening time, and so on, in addition, each student mostly two and a half piece of checked luggage, This, coupled with the need to maintain a certain distance between queues during the outbreak, has led to the above kilometer-long check-in queues.

At the same time, due to the temporary closure of Nanjing Airport after the outbreak, international flights from Nanjing were also suspended, and passengers who originally chose to fly abroad from Nanjing also switched to Pudong Airport, resulting in a further increase in the number of passengers at Pudong Airport.

 

In response, airlines have introduced some temporary measures, including station-to-call check-in lines, where passengers who are not called can wait nearby, and encouraging early online check-in.

$100,000 business class ticket to the United States again

On the one hand, there is a sudden surge in demand due to the start of school in the United States, on the other hand, there is only a handful of flights between China and the United States.

As far as I know, the flight capacity between China and the US is still limited. There are less than 20 direct flights in operation every week, far from the more than one day before the outbreak.

Huang Kang, president of Delta Air Lines China, told reporters that this period is indeed the peak of sino-US routes. From the beginning of summer vacation, the passenger load factor of Sino-US routes has been gradually improving. At first, Chinese students returned to China from the US after vacation or graduation, and now Chinese students go to the US from China to study. Delta currently operates four flights a week on its China-U.S. route, and almost all of them are fully booked.

Demand for flights between China and the United States has also driven up ticket prices. According to the reporter’s understanding, in July from the Mainland of China through Hong Kong to the United States, economy class tickets can still buy 5,000 to 8,000 yuan, business class about 16,000 yuan, in August, economy class tickets have risen to 20,000 to 30,000 yuan, business class is up to 70,000 to 100,000 yuan.

Flash crash, 3 consecutive stop!

Spark Global Limited reports:

Phoenix shares investors, the latest crazy roller coaster ride, inverted V!
After the previous consecutive rise, the ox and phoenix shaped shares in the recent three trading days of continuous flash collapse limit, and the news is not what major changes, investors a face meng, even called “kill pig plate”.
Phoenix shape shares skyrocketed nearly 2 times after the sudden 3 limit
In the case of no big changes in the news, phoenix shape shares suddenly three consecutive flash collapse limit, is the recent A share market trend more abnormal stocks.

Spark Global Limited reports:
And before this, the share price of Phoenix shape has risen nearly 2 times in a row in half a year, which is a bull stock. The previous surge did not see a particularly strong logic, so the recent consecutive decline is considered to be profit taking.

Fengxing co., Ltd. is a high-tech enterprise specializing in the research and development, production, sales and technical services of wear-resistant materials in the field of metal castings. The company’s market value is not large, even after a boom, the latest market value of 2.68 billion yuan.

In terms of business performance, it has been worth tens of millions of yuan every year in recent years. In 2019 and 2020, the operating revenue was 611 million yuan and 704 million yuan respectively, and the net profit was 66.15 million yuan and 60.97 million yuan respectively. Revenue in the first quarter of this year was 217 million yuan, up 66%; Net profit was 20.2 million yuan, up 42%.
Netizens call “kill pig plate”, “zhuang stock”

At the end of the latest quarter, there were only 8,050 shareholders, and the number of shareholders was also small. And in the stock bar, for the stock fluctuation is larger, some netizens think that the stock for zhuang stock, pig plate.

As for the recent large fluctuations, the company issued a statement saying that after verification and confirmation with the company, the controlling shareholders and the actual controller, the company does not have any major matters that should be disclosed but not disclosed, and there is no other major matters in the planning stage.

The major shareholders want a fire sale

Intense institutional game

From the recent dragon and Tiger list trading seats, institutional investors trading game is intense, in today’s August 11 seats, there is one institution to buy 7.68 million yuan. Between August 9 and August 10, two institutions bought more than 47 million yuan of seats, and two institutions sold about 55 million yuan of seats.

And before that, the stock price all the way up in the process, the company’s important shareholders also issued a reduction announcement. More than 5% of the major shareholder Chen Xiao plans to sell down no more than 9,162,231 shares from 2021-07-01 to 2022-01-19, accounting for no more than 10.41% of the total share capital; Director Zhou Qi plans to sell down no more than 6357 shares from 2021-08-04 to 2022-02-03, accounting for no more than 0.01% of the total share capital.

Capital retreated and the parents hurried to refund

Spark Global Limited reports:

Since the introduction of the “double reduction” policy in the education industry, the lingering influence is still unabated. The companies that will be hardest hit may not be the “thinkers” but the “Vipkids”.

The reason why this is said, there are two points can be verified: first, children’s English training is identified as “discipline training”, can be said to be a sure thing; Second, the General Office of the Central Committee of the Communist Party of China (CPC) and The General Office of the State Council of the People’s Republic of China (NBS) recently issued the Opinions on further reducing the homework burden of students in compulsory education and the Burden of after-school training, according to which it is strictly prohibited to employ foreigners to conduct training activities.

Spark Global Limited reports:

A number of insiders told bullet Finance that the vast majority of foreign teachers in the online children’s English industry live overseas, which means that domestic online children’s English institutions will generally face a serious shortage of foreign teachers.

Therefore, whether it is children’s English institutions, parents or capital markets, are inevitably “into panic”. The introduction of the “double reduction” policy, how deep will the VIPKID, 51Talk, Acasso and other players influence? How will these players explore new paths and redeem themselves?

Spark Global Limited reports:

Panicked parents and capital markets

“On the evening of July 24, when the policy was officially announced, several groups of parents I was in were on the point of exploding. Fortunately, I still had two weeks left to finish the children’s English course I had signed up for.” Zhou Ping, a parent of a Primary school student in Beijing, told Bullet Finance.

Zhou ping admitted that although she was worried about the future management problems of the online children’s English organization she signed up for, she did not want to give up the remaining classes. “To be honest, if I were to get a refund right now, I wouldn’t be able to find a better replacement anytime soon.”

Some parents claim refund directly, “when I finish see ShuangJian policy, for the first time I find my child registration agencies to communicate online children’s English, the other customer service staff told me that ShuangJian policy was aimed at compulsory education stage of the disciplinary training, juvenile’s English training affected small, but I still don’t trust, eventually applied for a refund.” Zheng Gang, a parent of a primary school student in Shanghai, told Bullet Finance.

There are 130 million empty houses in China! A Vacancy tax in the works?

Spark Global Limited reports:

I don’t know, but I was surprised.

China’s housing vacancy rate is probably one of the highest in history, surpassing that of many other countries, as evidenced by hundreds of millions of vacant houses.

What makes house prices go up and up?

We know that a tight housing market causes prices to rise, but prices continue to rise. It is no longer a matter of simple supply and demand.

Statistics show that China now has enough housing for 3.4 billion people; By 2019, 96 percent of urban residents owned their homes, according to separate figures released by the central bank.

It is worth noting that while the home ownership rate is 96%, more than 30% of households own two houses, more than 10% of households own three houses, and each family owns 1.5 houses.

In other words, overall, There is no shortage of housing in China, but there are serious structural imbalances.

The reason why such a situation, with speculation tenants have a certain relationship, on the one hand, they regard the housing as commodity investment, indirectly promote the rise of housing prices; On the other hand, the holding cost of the house is low, and tenants hoard the house and sell it at a higher price. During this period, the house is empty, but there is no tax cost.

China’s housing vacancy rate is flashing red

At the end of 2018, a report released by the China Household Finance Survey and Research Center at Southwestern University of Finance and Economics showed that the housing vacancy rate in China’s urban areas was 21.4%, and the total number of vacant houses in China in 2018 could be at least 130 million when combined with the number of vacant commercial houses and other housing units.

At a forum in 2019, Pan also mentioned that there were at least 130 million vacant houses nationwide.

By international standards, a vacancy rate of 5-10% is considered reasonable, 10%-20% is considered dangerous, and above 20% is considered a severe squeeze. Obviously, the problem of housing vacancy rate in our country is very serious.

Behind the high vacancy rate, not only resources are wasted, but also credit resources are crowded. According to data released by southwest University of Finance and Economics, by the end of 2018, the country’s credit resources for vacant housing reached 10 trillion yuan.

A Housing vacancy Tax in the works?

In response to this phenomenon, the call for a vacancy tax is also growing.

The idea of a vacancy tax has been around for a long time, but has been difficult to document.

The reason is that a series of related issues, such as how to define a vacant house, the tax base for a vacant house tax and how to prevent foreclosures, have not been resolved.

However, judging from the countries that have already implemented the vacancy tax, it can be effective in combating real estate speculation.

Coin ring is now a surprise robbery, hacker: I have no interest in money

Spark Global Limited reports:

Poly Network, a cross-chain and decentralized financial platform, announced that it had been hacked, and more than $610 million worth of virtual currency was stolen in just 34 minutes.

A multi-billion dollar hacker attack, one side is the vulnerability of the trading platform, the other is countless victims of the user. In the whirlpool, the incident is just a microcosm of the virtual currency trading chaos.

Spark Global Limited reports:

At lunchtime on August 12, Poly Network platform announced on social media that the hackers had returned $260 million of the stolen funds, with $353 million remaining.

Nearly 4 billion yuan of virtual currency was stolen in 34 minutes

On August 10, Poly Network platform was attacked by hackers, which almost looted the assets of three networks, namely Ethereum, Binant Smart Chain and Polygon. As a result, more than $610 million worth of virtual currencies including Ethereum and Bitcoin were stolen.

The attack, which first occurred at 17:55 on August 10, saw the hackers transfer 96.38 million USDCS, 1,032 WBTC and other assets from Poly Network Smart Contract on the Ethereum Network. Since 18:04, hackers on the Polygon network have transferred 85.08 million USDC from the smart contract. Since 18:08, hackers have transferred 87.6 million USDCS and 26,629 ETH assets from the smart contract of binance Smart Chain.

In just 34 minutes, Poly Network’s various asset broker contracts initiated 17 transfers to the hacker’s address, resulting in $610 million worth of tokens being taken from the Ethereum, Binant Smart Chain, and Polygon networks.

According to Ann technology team chengdu chain analysis, the attack is the main reason of the contract rights management loopholes in logic, a malicious user can through a carefully constructed data abnormal call part function, namely the attacker using the logic of the defects existing in the contract, through the contracts call the corresponding function change user name has its own address, This address is then used to sign the token withdrawal transaction, thereby withdrawing a large number of tokens from the contract.

Industry insiders say it could be the largest theft of virtual currencies in the history of the world to date, surpassing the Mt.Gox incident, in which 744,408 bitcoins were stolen, valued at about $400 million at the time, and the 2018 Coincheck case, in which 523 million XEM coins were stolen, valued at about $534 million at the time.

DeFi, or cross-chain Interoperability Protocol, is a decentralized financial protocol that runs on the Binance Smart Chain, Ethereum and Polygon blockchains and can be used for liquidity mining, has become a major target for hacking attacks. Losses from DEFI-related hacks totaled $361 million from the start of the year through July, nearly three times higher than for the whole of 2020, according to cryptocurrency intelligence firm CipherTrace.

Hackers staged a live stream of stolen coins

Poly Network’s official account immediately announced the attack and called on miners and virtual currency trading platforms to blacklist the tokens used by the hackers. At the same time, they said they would take legal action to urge the hackers to return the stolen assets as soon as possible.

After the incident, the major platforms and asset side actively responded, trying to prevent the hackers to transfer the stolen money.

Binance CEO Zhao Changpeng later said on social media: “Aware of the hacking incident at Poly Network, and while no one has been able to control binance Smart Chain and Ethereum, we are coordinating with all our security partners to help in any way they can.”

Tether, the issuer of Teta coins, quickly responded by freezing 33 million Teta coins directly from the hacker’s Ethereum address.

However, hubris rampant hackers, directly to the world staged a “stolen coins live”.

On the night of August 10, the hacker posted a message on the link, saying, I did not take all the assets in the agreement.

In the early hours of August 12, the PolyNetwork hackers also posted a “question and Answer” on the blockchain. Asked why he attacked the trading platform, he said: “For fun. Poly Network is a nice system and one of the most challenging attacks a hacker can enjoy. I had to beat any insider or hacker quickly, and I took it as a reward challenge.”

 

Asked why he returned some of his virtual currency, he said: “I’m not very interested in money! I know it hurts when people get attacked, but shouldn’t they learn something from these hackers?”

Trading platforms are attacked at the user’s own risk

With such a large amount of money stolen, there are many victims. Currently, the main group affected by the theft is the users who mine through the cross-chain aggregator O3 Swap. Will these users succeed in recovering their assets?

Guo Yatao, head of the chain legal team, told Zhongzhijun that in practice, ordinary investors can hardly get legal relief under the existing legal framework for user losses caused by smart contract vulnerabilities and hacker attacks.

Guo Yu of blockchain security company Abi LABS said that from a security perspective, when a system is complex enough and carries a large amount of money, hackers are bound to target it and try to attack for profit. Virtual currency trading platforms are attractive vaults for hackers, and complex black box systems are hard to break.

Since the beginning of this year, regulators have started to clean up virtual currency trading and mining. Investors should treat virtual currency investment rationally, establish a correct investment concept, and effectively improve risk awareness.