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The US Department of Justice (DOJ) is intensifying its efforts against hackers and exploiters in the Decentralized Finance (DeFi) sector, following a significant increase in illicit cryptocurrency activities over the past four years.

Eun Young Choi, the head of the DOJ’s National Cryptocurrency Enforcement Team (NCET), shared in a Financial Times report on May 15 that the DOJ is zeroing in on thefts and cyber-attacks related to DeFi, with a special focus on “chain bridges.”

Choi highlighted that this is a considerable concern for the DOJ, especially since North Korean state-sponsored hackers have been identified as major players in this area.

Cointelegraph reported in February that North Korean hackers had pilfered an estimated $630 million to $1 billion in cryptocurrency assets in 2022 alone.

Choi, who has nearly ten years of prosecutorial experience with the DOJ, was named the inaugural director of the NCET in February 2022. The DOJ stated at that time that the NCET would act as the primary hub for the department in dealing with matters related to cryptocurrency, cybercrime, money laundering, and asset forfeiture.

The DOJ underscored that they would specifically target “mixing and tumbling services,” but there was no mention of DeFi platforms in their initial announcement.

Speaking at the recent Financial Times Crypto and Digital Assets Summit, Choi reaffirmed that the DOJ is targeting cryptocurrency companies that either commit crimes or knowingly permit such activities to occur, thereby facilitating money laundering.

Choi underlined that focusing on the platforms where these activities originate could have a multiplying effect by making it harder for criminals to reap the benefits of their illicit activities.

She also noted that the extent and variety of illicit uses of digital assets have significantly increased in the past four years.

Cryptocurrency exchange Binance announced via Twitter on May 12 that it is ceasing operations in Canada. The decision is a “proactive” response to the new regulatory guidelines enforced by Canadian authorities, which are significantly impacting the nation’s cryptocurrency sector.

This move makes Binance the latest among several other cryptocurrency entities to exit Canada, following the implementation of new rules by the Canadian Securities Administrators (CSA) on February 22. These rules mandate that all crypto firms must submit new preregistration undertakings and comply with additional restrictions.

Despite having reportedly submitted a new preregistration undertaking, Binance clarified in a tweet: “Regrettably, new guidelines related to stablecoins and investor limits on crypto exchanges make it untenable for Binance to continue operations in the Canadian market at this time.”

The newly introduced CSA rules forbid companies from allowing Canadian clients to enter into contracts to purchase and sell any crypto asset classified as a security and/or a derivative, and they categorize stablecoins as securities.

Previous to Binance’s announcement, OKX exited the Canadian market in March, followed by decentralized exchange dYdX in April and blockchain fintech Paxos afterward.

An email from Binance to its Canadian users, as seen by Cointelegraph, asked them to settle their open positions by September 30, 2023. It cautioned that, “Starting October 1, 2023, Canadian customers will be transitioned to liquidation only mode.”

Binance further stated: “Although we disagree with the new guidelines, we intend to remain in dialogue with Canadian regulators in the hope of establishing a comprehensive, thoughtful regulatory framework.”

Binance had previously been operating in all Canadian provinces and territories, except Ontario. It had withdrawn from this province in March 2022, following an extended dispute with its regulatory authorities.

However, not all is doom and gloom for Canadian crypto enthusiasts. Kraken, another major player in the space, submitted a new preregistration undertaking in March and has pledged to maintain its operations in Canada. According to the CSA, there are 11 platforms “Authorized to Do Business with Canadians.”

Cryptocurrency exchange OKX has launched an audacious new marketing campaign, encouraging a comprehensive overhaul of existing financial and digital systems. The campaign subtly takes aim at the American exchange Coinbase and the wider conventional finance sector.

OKX unveiled its latest high-quality commercial, with its CMO, Haider Rafique, explaining the firm’s conviction in a Cointelegraph interview that blockchain technology is crucial for revamping financial infrastructure and promoting digital ownership.

During Rafique’s tenure, OKX has engaged in significant partnerships and daring ad campaigns with entities such as Manchester City and the McLaren Formula1 team, thereby bringing cryptocurrencies and Web3 offerings to broad global audiences.

The “Rewrite the System” initiative uses potent imagery to underscore issues like inflation, data breaches, and censorship as evidence of a flawed system. Rafique stressed that discussions about updating existing financial and digital structures do not address the deep-seated problems that inspired the campaign:

“The current system is not really designed to be updated and then updated into a system that can really solve some of the problems that the entire system has created.”

Several events over the past year have revealed the deficiencies of current financial systems, as well as the lapses of conventional finance and decentralized finance (DeFi) entities.

The notorious fall of FTX and the subsequent arrest of its former CEO, Sam Bankman-Fried, tarnished the cryptocurrency sector’s reputation. Traditional finance institutions, meanwhile, grappled with their own crises in a high-inflation economy, leading to the folding of Silicon Valley Bank, Silvergate Bank, and Signature Bank.

Rafique is of the opinion that these ongoing system failures highlight the stress on the financial ecosystem. He believes that these events will demonstrate how blockchain-based software offers individuals more control over their financial and digital independence:

“Our hope is that we can give the tooling to people that Web3 starts with, ultimately downloading software on your machine or your phone that enables you to be your own bank.”

The campaign also emphasizes interoperability as a key element in the case for blockchain-based, Web3 tools to revolutionize financial systems and platforms. Rafique cites the isolated nature and incompatibility of Google’s Play Store and Apple’s App Store as an example where blockchain-based applications could offer superior interoperability:

“Crypto and blockchain-based apps are actually designed to connect with each other and drive their interoperability.”

OKX aims to offer a wallet service that connects public chains, simplifying the management of digital assets, and exemplifying the interoperability inherent in blockchain technology:

“We want to connect all crypto ecosystems together so you can hop from one place to another place or another place very easily, but also at very low transaction costs.”

Rafique is firm in his belief that OKX’s advertising efforts, which include engaging audiences through partnerships in diverse markets, have shaped the exchange’s image.

Amid concerns about a potential denial-of-service (DoS) attack on the Bitcoin network, several prominent Bitcoin maximalists have stepped forward to allay fears, insisting that the network remains secure and robust.

Rumors of a potential DoS attack began circulating when users started noticing delays in Bitcoin transactions. This fueled speculation that malicious actors were attempting to flood the network with low-fee transactions in order to slow it down.

However, Bitcoin maximalists were quick to refute these claims, emphasizing that the network is designed to withstand such attacks. These experts argue that the recent congestion is primarily due to an increase in legitimate trading activities, as well as a higher demand for block space.

Notably, Bitcoin developer Jimmy Song took to Twitter to address the concerns, stating that the network is not under attack and that the delayed transactions are simply a result of increased demand. Song further clarified that Bitcoin’s sophisticated fee system is designed to prevent DoS attacks by prioritizing transactions with higher fees, ensuring that the network remains functional even during periods of high demand.

Other prominent figures in the Bitcoin community, such as Adam Back, CEO of Blockstream, and Jameson Lopp, CTO of Casa, also chimed in to support this stance. They emphasized that the Bitcoin network has demonstrated its resilience over the years and that it is highly unlikely that a DoS attack could be successful in disrupting the network.

While the recent congestion on the Bitcoin network has raised concerns, the reassurances from Bitcoin maximalists have helped to ease fears and reinforce the network’s reputation for security and reliability. Users are encouraged to remain patient during periods of high demand and adjust their transaction fees accordingly to ensure timely processing.