Today in crypto, Crypto.com CEO Kris Marszalek has denied that it kept a 2023 user data leak a secret from regulators, the first regulated China stablecoin launches as global stablecoin race heats up and Nasdaq-listed Flora Growth will rebrand to ZeroStack after raising $401 million to support 0G.
Crypto.com says report of undisclosed user data leak ‘unfounded’
Crypto exchange Crypto.com has denied that it kept a 2023 data leak of user details a secret from authorities.
Bloomberg reported on Friday that Noah Urban, a member of the hacking group Scattered Spider, said the group had phished their way into gaining access to a Crypto.com employee’s account sometime before early 2023, which exposed the personal information of some users.
Blockchain investigator ZachXBT then claimed on X that Crypto.com had “covered up a breach that impacted the personal information of your users,” adding that Crypto.com had been “breached several times.”
However, a Crypto.com spokesperson told Cointelegraph that the company made a “Notice of Data Security incident filing” in the US-based Nationwide Multistate Licensing System and in “additional reports with the relevant jurisdictional regulators.”
The incident “included exposure of limited PII [Personally Identifiable Information] data affecting a very small number of individuals,” they added. “The incident was contained within hours of detection, and no customer funds were accessed or ever at risk.”
The first regulated CNH-pegged stablecoin launches as the global competition heats up
The first stablecoin pegged to the Chinese yuan (CNH) launched this week, as competition from sovereign governments to claim a piece of the stablecoin market mounts.
Financial technology company AnchorX debuted its AxCNH yuan-pegged stablecoin on Wednesday at the Belt and Road Summit in Hong Kong. The token is meant for international transactions and not for domestic use on the Chinese mainland.
BDACS, a digital asset infrastructure company, also launched an overcollateralized Korean won-pegged stablecoin on Thursday, dubbed KRW1.
The developments come amid a push from China to challenge the US dollar’s dominance in digital currency markets and to establish land and maritime trade routes around the world.
Cannabis firm Flora Growth launches $401M treasury backing Zero Gravity
Nasdaq-listed cannabis firm Flora Growth has launched a $401 million treasury initiative to back Zero Gravity (0G), a blockchain project focused on powering decentralized AI infrastructure.
The move comes through a private placement deal combining $35 million in cash with $366 million in in-kind digital assets, primarily denominated in 0G tokens. As part of the transaction, Flora will rebrand as ZeroStack while retaining its Nasdaq ticker, FLGC, according to a Friday announcement.
Solana (SOL) treasury company DeFi Development Corp. (DFDV) led the deal, alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd, with participation from firms including Dao5, Abstract Ventures and Dispersion Capital.
“We’re thrilled to partner with FLGC on this fundraise and look forward to driving a deep collaboration between 0g and Solana,” said DFDV CEO Joseph Onorati. Flora will also hold a portion of its treasury in SOL tokens.
