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5 Feb 2026, 12:00

South Korean Authorities Question Crypto Exchange Executives Over Lawmaker’s ‘Favoritism’ Controversy

South Korea’s police have reportedly summoned executives from the largest local crypto exchanges for questioning regarding allegations of favor-seeking and favoritism from a now-independent lawmaker. Dunamu, Bithumb Executives Summoned By Police On Wednesday, the Seoul Metropolitan Police Agency’s Public Crimes Investigation Unit called former Dunamu CEO Lee Seok-woo and Bithumb officials as witnesses in the investigation of allegations against independent lawmaker Kim Byung-kee. According to local reports , police reportedly questioned the former CEO of Dunamu, the company that operates South Korea’s largest crypto exchange, Upbit, about whether Kim requested employment for his second son during a dinner meeting in November 2024. Kim’s former aides have claimed that the former Democratic Party’s floor leader had shown significant interest in crypto-related companies such as Dunamu and Bithumb, the second-largest crypto exchange in the country, for his son’s employment. However, after failing to secure a spot at the local industry leader, the lawmaker allegedly arranged for his son to work at Bithumb, where he worked for six months, starting in January 2025. A former aide told reporters in December that Kim had “originally tried to get him hired at ‘somewhere else,’ but when that fell through, he got him hired at Bithumb.” The reports alleged that Kim had instructed his aides to “attack Bithumb’s competitors” after the meeting with former CEO Lee and a job opening at Bithumb in November. He seemingly affirmed that “Dunamu’s monopoly is a complete problem.” The lawmaker has been accused of seeking to favor the crypto exchange his son worked for by repeatedly questioning Dunamu “in a manner intended to attack it” during Political Affairs Committee meetings. Kim told then-Financial Services Commission (FSC) Chairman Kim Byung-hwan that “the biggest problem with Korea’s virtual asset exchanges is the monopoly of a specific exchange,” the reports noted. He also pointed out a Financial Intelligence Unit (FIU) investigation that identified nearly 700,000 cases in which Upbit didn’t follow the proper Know-Your-Client (KYC) process. The Seoul Metropolitan Police also summoned a Bithumb executive on Tuesday and another Bithumb official on Wednesday for questions regarding the allegations against the lawmaker. FSC Explores Crypto Exchange Ownership Cap The investigation comes as the FSC explores imposing a cap on crypto exchange ownership. As reported by Bitcoinist, the financial authority’s chairman, Lee Eog-weon, recently revealed that the agency is reviewing a proposal to limit major shareholders’ stakes in exchanges at around 15%-20%. Lee stressed the need to limit the ownership stakes of controlling shareholders in crypto exchanges, highlighting that existing regulations mainly focus on anti-money laundering and investor protection. Nonetheless, the proposal has faced backlash from industry players and the ruling Democratic Party of Korea (DPK). According to local news outlets, a joint council representing domestic crypto exchanges, including Upbit, Bithumb, and Coinone, has opposed the cap. Exchanges warned that the proposed limit could hinder the development of South Korea’s crypto industry. It’s worth noting that if the law is enacted, major players like Dunamu’s chairman, Song Chi-hyung, and Coinone’s founder, Cha Myung-hoo, would be forced to sell a large portion of their holdings to comply with the ownership limit. Meanwhile, members of the Democratic Party also expressed their concerns, affirming that similar caps are uncommon and could make South Korea’s framework inconsistent with global regulatory trends and uninviting to investors. The exchange ownership cap proposal would be included in the upcoming Digital Asset Basic Act, also known as the Second Phase of the Virtual Asset User Protection Act, which will serve as a comprehensive framework for the entire crypto industry.

5 Feb 2026, 11:55

Crypto Futures Liquidated: Staggering $100 Million Hourly Wipeout Shakes Digital Asset Markets

BitcoinWorld Crypto Futures Liquidated: Staggering $100 Million Hourly Wipeout Shakes Digital Asset Markets Global cryptocurrency markets experienced a sharp contraction on Thursday, March 13, 2025, as a cascade of futures liquidations erased approximately $100 million in leveraged positions within a single hour, signaling intense volatility and shifting trader sentiment. This rapid deleveraging event, primarily concentrated on major exchanges like Binance, Bybit, and OKX, contributed to a 24-hour liquidation total nearing $950 million, according to aggregated data from Coinglass. Consequently, this activity underscores the inherent risks of derivative trading during periods of price discovery. Crypto Futures Liquidated in Rapid Market Move The $100 million hourly liquidation represents a significant market-clearing event. Typically, such liquidations occur when highly leveraged long or short positions are forcibly closed by exchanges because traders lack sufficient funds to maintain them. This process happens automatically when the market price moves against a position, hitting its predetermined liquidation price. Notably, the majority of these liquidated positions were long bets anticipating higher prices, data indicates. Therefore, this suggests a sudden downward price movement triggered a wave of margin calls. Market analysts often view large-scale liquidations as a potential catalyst for increased volatility. Forced selling from liquidated long positions can create additional downward pressure on spot prices. Conversely, liquidated short positions can accelerate upward rallies. This reflexive relationship between derivatives and spot markets is a critical feature of modern crypto trading. Historical data from previous cycles shows similar liquidation clusters often precede or accompany major trend changes or periods of consolidation. Understanding the Mechanics of Futures Liquidation To grasp the scale of a $100 million liquidation, one must understand the mechanics. Cryptocurrency futures contracts allow traders to speculate on price movements using leverage, often ranging from 5x to 125x. While leverage amplifies potential gains, it also magnifies losses. Exchanges use a mark price and a maintenance margin requirement to manage risk. If a trader’s equity falls below this requirement, the exchange’s system initiates a liquidation to prevent negative balance. Liquidation Cascade: A large liquidation can push the price further, triggering more liquidations in a chain reaction. Funding Rates: Before liquidations, extreme funding rates on perpetual swaps can signal overcrowded positioning. Market Impact: The $950 million 24-hour figure provides context, showing sustained pressure rather than an isolated spike. This event’s timing is also noteworthy. It occurred amid macroeconomic uncertainty and shifting regulatory discussions, factors that traditionally influence crypto asset volatility. The liquidation data serves as a real-time pulse on market leverage and trader confidence. Expert Analysis on Market Structure and Risk Industry observers point to the growing sophistication and size of the crypto derivatives market as a double-edged sword. “While derivatives provide essential liquidity and price discovery,” notes a report from Arcane Research, “they also concentrate risk. A $100 million hourly liquidation, while substantial, is now a known phenomenon in a market where open interest regularly exceeds $50 billion.” The report further emphasizes that such events test the resilience of exchange risk engines and highlight the importance of robust risk management for institutional and retail participants alike. Data from the past year reveals an increasing correlation between Bitcoin’s price swings and liquidation volumes. This correlation suggests that derivatives activity is now a primary driver of short-term volatility, not merely a reflection of it. The recent liquidation cluster may indicate a market flushing out excessive leverage, a process sometimes viewed as healthy for establishing a more stable price foundation. However, it also results in significant capital destruction for over-leveraged traders. Historical Context and Comparative Impact Placing the current figures in historical context is crucial for perspective. The infamous market downturn of May 2021 saw single-day liquidation volumes exceeding $10 billion. More recently, the FTX collapse in November 2022 triggered multi-billion dollar liquidation events. Compared to these historical extremes, a $100 million hourly or even a $950 million daily liquidation represents a significant but not catastrophic market adjustment. It often reflects a normalization of leverage rather than a systemic crisis. The distribution of liquidations across exchanges also offers insights. Concentrated liquidations on a single platform might indicate issues with specific leverage products or a localized trader cohort. Widespread liquidations across all major venues, as seen in this instance, typically point to a broad macro move affecting the entire asset class. This pattern suggests the trigger was likely a fundamental or widespread technical signal rather than an exchange-specific problem. Conclusion The liquidation of $100 million in crypto futures within one hour serves as a potent reminder of the volatile and leveraged nature of digital asset markets. This event, part of a larger $950 million 24-hour deleveraging, highlights the ongoing interplay between derivative instruments and spot prices. While not unprecedented in scale, such liquidations underscore the critical importance of risk management, position sizing, and an understanding of market mechanics for all participants. As the cryptocurrency ecosystem matures, monitoring liquidation levels remains a key indicator of market sentiment and potential volatility ahead. FAQs Q1: What does ‘futures liquidated’ mean? A futures liquidation is the forced closure of a leveraged derivative position by an exchange because the trader’s collateral has fallen below the required maintenance margin, preventing further losses. Q2: What causes a cascade of liquidations? A liquidation cascade occurs when one large forced sale pushes the price, triggering more stop-losses and liquidations at nearby price levels, creating a chain reaction of selling. Q3: Are liquidations always bad for the market? Not necessarily. While painful for affected traders, liquidations can flush out excessive leverage and overconfidence, potentially leading to a healthier, less fragile market structure afterward. Q4: How can traders avoid being liquidated? Traders can avoid liquidation by using lower leverage, maintaining ample collateral above the maintenance margin, employing stop-loss orders wisely, and constantly monitoring their positions. Q5: Where can I see real-time liquidation data? Aggregated liquidation data across multiple exchanges is publicly available on analytics websites like Coinglass, Bybt, and CryptoQuant, providing real-time and historical insights. This post Crypto Futures Liquidated: Staggering $100 Million Hourly Wipeout Shakes Digital Asset Markets first appeared on BitcoinWorld .

5 Feb 2026, 11:42

CZ Shuts Down Binance Critic Over Fake Cease and Desist Claim

Binance Founder CZ has denied filing a cease-and-desist order against critic Jacob King.

5 Feb 2026, 11:36

Bitcoin drops below $70,000 as crypto selloff deepens before U.S. equity market opens

"Extreme fear" grips crypto and metals while U.S. equities show resilience ahead of key earnings.

5 Feb 2026, 11:15

Ripple launches permissioned domains on XRPL mainnet

The XRP Ledger activated a new access control framework on its main network on Wednesday, following validators’ approval of the permissioned domains protocol amendment. According to an update from the Ripple developers, X account, permissioned Domains have been officially activated on XRPL under the XLS-80 amendment. These domains will launch controlled participation environments directly on the public ledger infrastructure, the developers said. A strong validator backing for the amendment saw more than 91% of network validators support the proposal, clearing the threshold required by XRPL’s governance rules. The upgrade will allow regulated entities to interact with liquidity pools on the shared blockchain, while the “full permissioning stack” will be available to institutions soon, Ripple confirmed. Moreover, the permissioned decentralized exchange has already achieved validator consensus and is scheduled to activate in two weeks. XRPL’s standard amendment process requires amendments to undergo a waiting period after a supermajority approval. 90% validator vote leads to permissioned domains activation As reported by Cryptopolitan, the XLS-80 amendment surpassed the 80% validator support threshold in late January. It then entered the mandatory formal two-week activation window that concluded on February 4. The now-active proposal introduces permissioned domains as managed environments, with activity governed by rule-based credentials. The domains would allow institutions to use the blockchain ledger’s shared security and transparency while controlling who may participate. Ripple’s developers noted that the method is the best way for financial firms to adopt decentralized systems while maintaining regulatory compliance. “This approach aims to bridge the gap between the transparency and security benefits of decentralized blockchain technology and the regulatory requirements of traditional financial institutions,” said Ripple devs. Permissioned Domains build on the XLS-70 Credentials system, which supports verifiable attestations that confirm compliance status issued by trusted parties. Domain operators set rules by defining which credentials are acceptable. Accounts with valid credentials will automatically become domain members once the criteria are met, with no additional enrollment steps required. Compromised credentials or misuse of domains for unlawful purposes must be addressed through governance and operational controls, Ripple said. A typical permissioned blockchain system uses nodes with verified identities, membership service providers, and structured consensus engines. In the case of XRPL , application logic for the domains will run through smart contract layers. The system adds technical elements such as the PermissionedDomain ledger object and specialized management transactions. Those transactions include PermissionedDomainSet and PermissionedDomainDelete, which allow domain creation and removal. On the other hand, the Permissioned decentralized exchange will operate inside the native XRPL trading engine. Its order books will accept trades only from accounts that meet domain requirements for validators to approve transactions in liquidity pools for regulated participants. 🚨 David Schwartz Reveals The Feature That Will Let Institutions Deploy Billions in Liquidity on XRPL Permissioned Domains with zk-Credential System was the last piece of the puzzle institutions needed to deploy trillions in capital securely on-chain. Epstein funding ZCash and… https://t.co/PLJoTNyIl2 pic.twitter.com/55c8BoUp79 — Stern Drew (@SternDrewCrypto) February 3, 2026 XRP enthusiasts on X reiterate that one reason institutions can’t yet use XRPL-based decentralized exchanges for payments is the lack of permissioned domains. The community believes the changes will now rope in institutions and Ripple itself to use the ledger for transactions, in preparation for the permissioned DEX. XRP lending amendment enters governance phase In other related blockchain news, XRPL’s native lending protocol reached the governance phase on January 28. The proposal, named the XLS-66d amendment, entered validator voting after the release of network software version 3.1.0. All 34 validators began casting votes on enabling lending functionality directly on the ledger. The framework introduces structured credit tools for professional market participants, with loans under the system carrying fixed durations of 30 to 180 days. The set repayment terms are defined in advance, and each agreement is recorded directly on-chain. XLS-66d will see XRPL lenders issue fixed-term agreements and predictable settlement structures, and each loan will create a signed ledger entry documenting the terms. Furthermore, credit checks and risk assessments will take place off-chain through established underwriting processes. The lending protocol records each broker object directly on the ledger, listed in an Owner Directory controlled by the account that submits the LoanBrokerSet transaction. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

5 Feb 2026, 11:00

Is there any truth to ‘FTX 2.0’ accusations directed at Binance?

While X erupts with insolvency claims, blockchain data quietly signals business-as-usual inside Binance’s reserves.