The ever-evolving crypto landscape is facing fresh challenges as shifting trade policies, high-profile hacks, and risky leverage trades shake the industry. From Bitcoin miners adjusting to US-Canada tariff uncertainties to THORChain battling money-laundering allegations and Bybit grappling with multimillion-dollar losses, there’s no shortage of drama.
Bitcoin Miners Caught in the Crossfire of US-Canada Tariff Tug-of-War 🇺🇦🇨🇦
Bitcoin miners are on high alert as shifting trade policies between the US and Canada create uncertainty in energy costs and regulations.
📈 The Ripple Effect of Tariff Tensions
The ongoing trade tussle between the US and Canada is making waves across industries, and Bitcoin mining is no exception. US President Donald Trump’s recent threats to double tariffs on steel and aluminum—raising them from 25% to 50%—sparked a tense response from Canadian policymakers.
Ontario Premier Doug Ford initially proposed increasing the surcharge on power exports to the US or even cutting off supply altogether. However, with tensions slightly easing, Ford has softened his stance—at least for now.
⚡️ Energy Markets: A Critical Concern for Miners
Bitcoin miners are particularly sensitive to energy prices since their operations require massive amounts of electricity. Ben Ganon, CEO of Canadian Bitcoin mining firm Bitfarms, downplayed concerns about the potential hikes, noting that their operations in hydro-rich provinces like Quebec and British Columbia are largely insulated from Ontario’s less robust energy market.
“Over the last several years, Ontario has been cutting back on baseload capacity,” Ganon told Bloomberg on March 11. For now, miners remain vigilant, anticipating further policy shifts that could impact their bottom lines.
THORChain at a Crossroads: Decentralization vs. Criminal Exploitation ⚖️
THORChain, a decentralized finance (DeFi) protocol, is under intense scrutiny after being labeled a “money laundering” platform. This accusation comes in the wake of North Korean hackers exploiting the protocol to convert stolen Ether (ETH) to Bitcoin (BTC) following a $1.4 billion Bybit hack.
🕵️♂️ Tracing the Trail of Stolen Funds
The Lazarus Group, a notorious North Korean state-backed hacking organization, allegedly used THORChain to convert their stolen ETH within just 10 days of the hack. This rapid asset movement has sparked internal discord, governance challenges, and even developer resignations within the THORChain community.
Despite the controversy, some argue that THORChain isn’t a laundering tool. Federico Paesano from Crystal Intelligence emphasized that the stolen funds remain traceable across blockchains, unlike traditional mixers designed to obscure transactions.
“There’s been no concealment, only conversion,” Paesano explained in a LinkedIn post, pushing back against the laundering allegations.
Bybit CEO Responds to $4M Hyperliquid Loss 💨
Bybit CEO Ben Zhou is calling for a dynamic risk management system following a “brutal” $4 million loss on the Hyperliquid decentralized exchange (DEX). This incident stemmed from a crypto investor using extreme leverage, highlighting the risks associated with such high-stakes trading.
📊 Anatomy of the $4 Million Blow
On March 12, a trader used 50x leverage to transform $10 million into a $270 million ETH long position. Unable to exit without collapsing their own position, the trader withdrew collateral strategically, leaving Hyperliquid to shoulder the $4 million loss.
Smart contract auditor Three Sigma clarified that the event wasn’t a bug or an exploit but rather “a brutal game of liquidity mechanics.” Hyperliquid echoed this sentiment, confirming no protocol vulnerabilities were involved.
⚙️ Strengthening Risk Controls
In response, Zhou suggested implementing a dynamic leverage adjustment that scales down as position sizes grow. This approach, he argues, could protect both centralized and decentralized platforms from future liquidity crises.
📃 As the crypto landscape evolves, these stories highlight the delicate balance between innovation, regulation, and security. Bitcoin miners, DeFi protocols, and exchanges alike must stay agile as they navigate shifting policies and emerging risks.
