The stablecoin market continues to evolve with significant inflows recorded over the past days. Recent data suggests a gradual increase in these cryptocurrencies’ influx, signaling ongoing growth in the crypto ecosystem. This development underscores cryptocurrencies’ potential to become a more uncorrelated asset class, particularly as global economic debates around tariffs and trade wars persist.
In a surprising turnaround, the stablecoin market has seen a significant inflow despite a slowdown in growth. According to a recent report by Matrixport, this growing positive sentiment indicates market growth.
However, Matrixport asserted that the trend is not sufficient to trigger a significant altcoin rally. Instead, massive inflows are illuminating the crypto industry’s steady growth, making it clear that the sector is far from stagnant. Matrixport cited, “While this may not be enough to trigger a parabolic altcoin rally, it clearly shows the industry is far from stagnant.”
Crypto vs Traditional Markets
According to Matrixport, these stablecoins defy the uncertainty surrounding the broader financial sector. Recently, the traditional market, including stocks and bonds, saw its largest fall since 2020. This debacle, which followed US President Donald Trump’s tariff announcement, largely left cryptocurrencies unaffected.
Notably, Bitcoin remained resilient to the stock market collapse despite BTC’s strong correlation with the latter. And now, these crypto buck the negative trend, securing significant inflows. This trend suggests that crypto is potentially becoming a more uncorrelated asset class; cryptocurrencies are becoming less influenced by traditional markets. Matrixport’s statement read:
“Notably, stablecoin inflows are increasing despite uncertainty in equity and bond markets, suggesting crypto could be evolving into a more uncorrelated asset class.”
US Stablecoin Regulation: A Closer Look
The significant inflow coincides with the favorable regulatory environment in the United States. Recently, the Trump government passed the STABLE Act to establish regulatory guidelines for all USD-pegged coins, including Tether (USDT) and Circle (USDC).
The Supreme Court recently dismissed a petition filed by WazirX users following the platform’s major hack in July 2024. The hack, which resulted in the theft of Rs. 2,000 crore worth of crypto, left over 4.4 million users locked out of their accounts.
This incident, and the court’s rejection of the petition, has highlighted the glaring gaps in India’s crypto regulations, leaving users vulnerable and raising questions about the country’s ability to protect digital asset holders.
The WazirX Hack: A Blow to 4.4 Million Users
On July 18, 2024, WazirX, one of India’s largest crypto exchanges, was targeted in a massive hack that saw a significant portion of user funds stolen. Despite the exchange’s promise to restore 85% of users’ funds by May 2025, many affected users are dissatisfied with the compensation plan. This led 54 users to file a petition with the Supreme Court, seeking intervention in the ongoing restructuring process happening in Singapore, and requesting a thorough investigation into the exchange’s fund mismanagement.
Supreme Court’s Decision: A Setback for Users
The Supreme Court, led by Justice B R Gavai and Justice Augustine Masih, dismissed the petition, citing the absence of clear crypto regulations in India. The ruling underscored the limitations of the current legal framework, leaving victims of crypto hacks, such as the WazirX incident, with little recourse in the Indian legal system.
WazirX’s Restructuring Plan: Fund Recovery on the Horizon
In response to the hack, WazirX management proposed a restructuring plan to the Singapore Court, promising to restore 85% of affected user funds by May 2025. The remaining 15% will be returned over the following 2-3 years, depending on the exchange’s recovery and future profits. While the restructuring plan has received user support, the Singapore court’s approval is still pending.
WazirX Users Vote in Favor of the Recovery Plan
Despite the legal hurdles, WazirX claims that more than 93% of users support the exchange’s restructuring proposal, following a vote conducted in partnership with legal firm Kroll.
The Call for Crypto Regulation in India
The WazirX case serves as a wake-up call for India, highlighting the urgent need for a clear and robust cryptocurrency regulatory framework. While countries like the U.S. have embraced pro-crypto policies, India’s regulatory stance remains largely outdated. The WazirX hack exposes how India’s failure to adopt progressive crypto laws leaves users at risk, preventing the sector from reaching its full potential.
As the global crypto landscape continues to evolve, India risks falling behind if it does not address its regulatory shortcomings. The WazirX saga illustrates the challenges faced by users in a legal vacuum, emphasizing the need for stronger regulations to protect the growing crypto community in India.
FAQs
How does WazirX’s restructuring plan work for affected users?
WazirX’s restructuring plan aims to restore 85% of the crypto portfolios for affected WazirX users by May 2025. The remaining 15% of the funds will be returned over the next 2-3 years, depending on the exchange’s recovery and future profits. This plan is part of the ongoing restructuring process being presented in the Singapore court. While WazirX claims over 93% of users support this proposal, the plan still awaits court approval.
What steps are WazirX users required to take to benefit from the proposed 85% fund recovery in the restructuring plan?
WazirX users need to stay updated on the restructuring process, accept the plan, and possibly verify their accounts to claim their share of the 85% fund recovery.
Why is WazirX promising to restore only 85% of the users’ funds, and what happens to the remaining 15%?
WazirX is restoring 85% due to financial constraints after the hack. The remaining 15% will be returned over 2-3 years, depending on the exchange’s future profits and recovery.
How does WazirX plan to recover the remaining 15% of funds over the next 2-3 years for users affected by the hack?
WazirX plans to recover the remaining 15% through future profits and successful financial recovery, returning the funds once the exchange is in a better financial position.
The post WazirX News: 85% Fund Recovery Plan Explained for Affected Users appeared first on Coinpedia Fintech News
The Supreme Court recently dismissed a petition filed by WazirX users following the platform’s major hack in July 2024. The hack, which resulted in the theft of Rs. 2,000 crore worth of crypto, left over 4.4 million users locked out of their accounts. This incident, and the court’s rejection of the petition, has highlighted the …
RVN, the native token of Ravencoin, a blockchain dedicated to creation and peer-to-peer transfer of assets, saw an astronomical surge of 94% just hours after it was listed on Upbit exchange, even as Bitcoin dropped below $105,000 on Thursday. Upbit exchange announced listing of Ravencoin on Wednesday with 5 pm Korean Standard Time (KST) as
Bitget exchange, in collaboration with blockchain security firms SlowMist and Elliptic, has exposed the terrifying anatomy of the most advanced crypto scams in recent times.
These findings come amid rising security incidents, ranging from high-profile attacks to government involvement in crypto laundering attacks.
AI Deepfakes, Social Tactics Behind 2025 Crypto Scam Rise: Bitget Report
The report cites AI deepfakes, weaponized psychology, and social engineering. It lays bare how bad actors use synthetic videos, virtual identities, and fake crypto meetings to deceive users and dismantle trust in the Web3 ecosystem.
A key finding in the report is that in 2025, scams will go beyond stealing user keys to hijack victims’ realities. From celebrity deepfakes to Trojan job offers and fake Zoom meetings, the latest scams blend high-tech deception with low-tech manipulation.
Bitget’s report categorizes the most dangerous threats under three pillars: deepfake impersonation, social engineering scams, and advanced Ponzi schemes. The most insidious are deepfakes.
AI Deepfakes Blur the Line Between Real and Fake
In early 2025, Hong Kong police arrested 31 individuals in a deepfake scam syndicate. Perpetrators stole $34 million by impersonating crypto executives during fake investment calls. This was just one of 87 similar operations dismantled across Asia in Q1 alone.
“…attackers using AI synthesis tools to fabricate audio and video likenesses of well-known project founders, exchange executives, or community KOLs in order to mislead users. These fabricated materials are often highly realistic,” read an excerpt in the report shared with BeInCrypto.
With tools like Synthesia, ElevenLabs, and HeyGen, attackers fabricate dynamic likenesses of public figures. Named victims include Elon Musk and Singapore’s Prime Minister. Bad actors create convincing videos to promote fraudulent platforms.
These videos are often distributed on social channels like Telegram, X (Twitter), and YouTube Shorts. Based on the report, they turn off comments to maintain a façade of legitimacy.
One case involved deepfake clips of Singapore Minister Lee Hsien Loong endorsing a “government-backed crypto initiative.” The campaign reportedly ensnared thousands before it was flagged.
Zoom, but Make It a Scam
Another disturbing tactic involves impersonating Zoom. Victims receive fake meeting invites from “crypto executives,” prompting them to download Trojan-laced software.
During the meeting, scammers use deepfake avatars and fabricated credentials to trick users into sharing wallet access or approving malicious transactions.
“The people luring you to download fake Zoom for meetings are extremely persuasive, making you feel it’s unlikely to be fake. A key point is that the participants you see during the meeting are actually displayed using deepfake videos… Don’t doubt it, in the AI era, video and voice forgery can be extremely realistic…,” SlowMist founder Cos shared on X.
Once inside the system, attackers can access browser data, cloud storage, or private keys, exposing users to total account compromise. These multi-layered attacks represent a new “identity hijack” category combining technical infiltration and social trust manipulation.
Social Engineering to Exploit Human Vulnerability
Bitget’s report stresses that modern scams rely as much on psychology as code. One notable trend is the rise of “AI arbitrage bot” scams, where scammers promise effortless gains using ChatGPT-branded smart contracts.
Bad actors trick users into deploying malicious code via fake Remix IDE pages, and their funds are instantly rerouted to scammer wallets.
What’s worse? These schemes are often small-scale, targeting victims for $50–$200 at a time. While the losses are minor enough to deter pursuit, they are frequent enough to generate large cumulative profits for attackers.
Ponzi Schemes Behind Promised Yields
Beyond AI-generated scams, Bitget also warns that traditional Ponzi and pyramid schemes have not disappeared, but have mutated. Specifically, these scams have undergone a “digital evolution,” leveraging on-chain tools, rapid viral marketing, and the illusion of legitimacy through smart contracts.
Instead of opaque offshore bank accounts, modern-day fraudsters attract victims through Telegram groups, Twitter hype, and tokens with built-in referral mechanics.
Smart contracts give these scams a thin veneer of decentralization and transparency. Meanwhile, carefully obfuscated tokenomics mimic legitimate yield structures until the inevitable collapse.
A potent mix of social engineering and digital virality is fueling this transformation. Influencers and anonymous promoters often seed these scams through memes, testimonials, or even AI-generated videos posing as reputable figures.
Projects disguised as “community-driven” DAOs or staking protocols rope users in with unsustainable returns, creating a frenzy of buy-ins that mask the exit liquidity strategy.
As regulation struggles to catch up, the speed and scale at which these digital Ponzi schemes propagate make them harder to track.
A Call for Skepticism and Collective Defense
Against this backdrop, Bitget has launched a dedicated Anti-Scam Hub, integrating real-time behavioral analytics to flag suspicious activity.
It has partnered with Elliptic and SlowMist to trace illicit fund flows and dismantle phishing infrastructures across multiple chains.
The report urges users to verify all asset-related instructions across multiple channels, noting that visual and auditory credibility is no longer enough. It also encourages projects to adopt on-chain signature broadcasts and maintain a single verified communication channel.
Scam Red Flags and Protection Measures. Source: Bitget report
With scams advancing, so must user and ecosystem defenses. The crypto industry now faces a dual challenge: safeguarding assets and rebuilding user trust in a digital world where anyone can be anyone.
