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Edited by Kamal531 at 22-12-2023 02:01 PM
Developments worth watching for Bitcoin (BTC) and cryptocurrency investors in the first week of October.
Last week, the crypto world saw five major news stories. Mixin Network faced a $20 billion hack, and two prominent crypto figures were arrested.
1. Mixin Network faced a $20 billion hack due to a recent security vulnerability. They have called upon blockchain security company SlowMist to assist with the investigation. The attack targeted Mixin Network's cloud service provider's database, and only about half of the user assets were considered safe. Mixin Network has proposed issuing "bonds" to address the situation and plans to repurchase them in the future. As a negotiation attempt, they offered a $200,000 on-chain "bug bounty" to return the stolen funds to the hacker. It was also mentioned that the losses from the attack might not be as significant as initially estimated.
2. Two prominent crypto figures were arrested:
- Su Zhu, co-founder of Three Arrows Capital, was detained at an airport in Singapore while attempting to leave the country. This arrest was related to his failure to comply with a court order regarding the liquidation of a cooperative investment fund.
- Ben Armstrong, also known as Bitboy Crypto, was arrested during an attempt to confront a former business partner. His arrest occurred after he left his YouTube channel and faced charges related to drug abuse and harm to the Bitboy Crypto community.
3. VanEck is preparing to apply for an Ethereum futures exchange-traded fund (ETF), which will focus on Ethereum futures contracts traded on the Chicago Mercantile Exchange (CME). The ETF, called the Ethereum Strategy ETF (EFUT), will not directly invest in ETH or other digital assets but will concentrate on cash-settled ETH futures contracts. The ETF plans to be listed on the Chicago Board Options Exchange and will be actively managed by Greg Krenzer, VanEck's Head of Active Trading. VanEck also committed to donating 10% of the profits generated by the Ethereum Strategy ETF to The Protocol Guild, a collective of Ethereum core protocol contributors, for at least ten years.
4. Circle, the issuer of the USDC stablecoin, expressed its perspective on the ongoing legal proceedings between Binance and the U.S. Securities and Exchange Commission (SEC). Circle believes that stablecoins are intended for payment purposes and should not fall under the SEC's jurisdiction. They emphasized that those using stablecoins do not expect to profit from holding them. Additionally, crypto venture capital firm Paradigm criticized the SEC's actions in the Binance case, accusing the agency of attempting to change the law without following regulatory procedures. Paradigm stressed that assets like gold, silver, and art can appreciate, but their sale does not necessarily constitute securities. These statements were made amid broader discussions about the classification and regulation of digital assets.
5. Binance announced its complete exit from the Russian market due to ongoing legal issues. The company revealed that it had sold its Russian business to the newly launched cryptocurrency exchange, CommEX. Binance acknowledged that its compliance strategy was not suitable for operating in Russia. As part of the transition, Binance assured that the assets of existing Russian users are secure, and transferring assets to CommEX may take up to a year. Binance CEO Changpeng Zhao mentioned that some former Binance employees may have joined CommEX. He emphasized the similarities in design and API between Binance and CommEX, aiming to provide a seamless user experience. Zhao clarified that he does not own any stake in the new exchange, and details about the ownership and operation of CommEX have not been widely disclosed, raising questions in the crypto community. |
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Post time 5-10-2023 13:11:11