Cryptocurrency Exchange KuCoin Hacked, $203 Million Moved
The Singapore-headquartered digital asset exchange KuCoin detected large withdrawals of crypto-asset tokens to an unknown wallet on September 25. One or more hackers obtained the private keys to the exchange’s hot wallets. About $203 million worth of tokens were been moved to a different address. KuCoin transferred what was left in them to new hot wallets, abandoned the old ones and froze customer deposits and withdrawals. Also cryptocurrency exchanges and blockchain projects froze about $130 million of the stolen assets to minimize the damage.
Fintech Credit Risk Assessment for SMEs: Evidence from China
An IMF working paper suggested that the fintech approach to assessing credit risk yields better predictions of loan defaults. The fintech approach uses big data and machine learning models, versus traditional approaches that use financial data and scorecard models. 1.8 million loans to Chinese small and medium-size enterprises (SMEs) by online lender MyBank, a subsidiary of Ant Group, were analyzed. The results showed that BigTech’s proprietary information can complement or, where necessary, substitute credit history in risk assessment, allowing unbanked firms to borrow.
US SEC issues no-action letter on compressed digital asset settlement process
The U.S. Securities and Exchange Commission (SEC) took a major step toward streamlining digital asset securities settlement by compressing the previous four-step process into three in a bid to reduce operational risk for broker-dealers. The SEC issued a no-action letter on September 25, stating it will not penalize any broker-dealer operating an alternative trading system (ATS) that trades digital asset securities — if they adhere to the new guidelines.
Posted from Diigo: https://www.diigo.com/user/kiffmeister/Fintech
