- Last week, five major news stories stood out in the crypto world. Mixin Network faced a $200 million hack attack, and two famous crypto figures were arrested.
- Binance decided to completely exit the Russian market due to ongoing legal issues. The company announced that it had sold its Russian business to the newly launched crypto exchange CommEX.
- Paradigm criticized the SEC’s approach in the Binance case and accused the institution of trying to change the law without following the regulatory process.
The crypto world had a week filled with intense developments: What should investors focus on in the first week of October?
Key Highlights from Last Week
Five major news stories dominated the crypto world last week. Mixin Network lost approximately $200 million due to a recent security breach. The company called upon blockchain security firm SlowMist to assist in investigating the attack. The attack targeted Mixin Network’s cloud service provider database.
Mixin Network faced a $200 million hack attack
Mixin founder Feng Xiaodong revealed that, following the attack, only about half of the users’ assets were safe. To address the situation, he recommended users issue “bonds” and stated that Mixin intended to repurchase them in the future. As a negotiation attempt, Mixin Network extended an on-chain offer of a $20 million “bug bounty” in return for the return of the stolen funds to the hacker. Mixin also noted that the losses from the attack might not be as significant as initially estimated.
Two famous crypto figures were arrested
Su Zhu, co-founder of the former crypto hedge fund Three Arrows Capital, was detained at an airport in Singapore while attempting to leave the country. This arrest followed his failure to comply with a court order related to cooperating in an investigation into the liquidation of the fund. As a result, he was sentenced to four months in prison.
In a separate incident, crypto influencer Ben Armstrong, also known as Bitboy Crypto, was apprehended while attempting to confront a former business partner. Before the arrest, there were speculations that Armstrong’s attempt to meet the former partner was aimed at regaining his Lamborghini. This arrest occurred after Armstrong’s departure from his YouTube channel and following allegations of substance abuse and harming the Bitboy Crypto community.
VanEck is preparing to apply for an Ethereum futures ETF
VanEck is preparing to launch the Ethereum Strategy ETF (EFUT), which will focus on Ethereum futures contracts. This actively managed ETF will not directly invest in ETH or other digital assets but will concentrate on standardized, cash-settled ETH futures contracts traded on the Chicago Mercantile Exchange (CME). The ETF is planned to be listed on the CBOE and will be actively supervised by VanEck’s Head of Active Trading, Greg Krenzer.
In a move reflecting its commitment to the Ethereum community, VanEck announced its intention to donate 10% of the profits generated from the Ethereum Strategy ETF to The Protocol Guild, a collective of core protocol contributors to Ethereum. This commitment to the donation will be valid for a minimum of ten years, emphasizing VanEck’s dedication to supporting the continuous development and management of Ethereum’s infrastructure.
Circle and Paradigm take a stance against Binance
The issuer of the USDC stablecoin, Circle, expressed its views on the ongoing legal process between Binance and the U.S. Securities and Exchange Commission (SEC). The SEC’s lawsuit alleges that Binance’s affiliate BAM Trading sold unregistered securities, including BNB and BUSD. Circle argued that stablecoins are intended for payment purposes and, therefore, should not fall within the jurisdiction of the SEC. They emphasized that those using such stablecoins do not hold them with the expectation of profit.
Additionally, crypto venture capital firm Paradigm criticized the SEC’s approach in the Binance case and accused the institution of attempting to change the law without following the regulatory process. Paradigm highlighted that assets like gold, silver, and art can appreciate in value but that their sale does not necessarily constitute a security. Circle and Paradigm’s statements came within the broader context of a discussion about the classification and regulation of digital assets.
Binance exchange exits Russia
Binance decided to completely exit the Russian market due to ongoing legal issues. The company announced that it had sold its Russian business to the newly launched crypto exchange CommEX. This decision was made because Binance realized 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 were safe and that the transfer of assets to CommEX could take up to a year.
Binance CEO Changpeng Zhao mentioned that some former Binance employees might have joined CommEX, and he highlighted the similarities in design and APIs between Binance and CommEX, aiming to provide a seamless user experience. He also clarified that CommEX does not serve users from the United States or the European Union and that he does not own any shares in the new exchange. Ownership and operation details of CommEX have not been widely disclosed, raising questions within the crypto community.
Key News Headlines from Last Week:
In addition to the five headlines we examined in detail, here are other significant news stories from the crypto world last week:
- September 25: The Arbitrum Foundation announced that 69 million ARB (valued at $57 million) in unclaimed airdrop tokens had been transferred to the Arbitrum DAO treasury.
- September 25: MicroStrategy reported purchasing $147.3 million worth of Bitcoin.
- September 25: A hack attack on the HTX (Huobi) exchange resulted in the theft of 5,000 ETH. Justin Sun announced that they had replenished the stolen ETH.
- September 25: Bernstein suggested that capital in crypto funds could increase from $50 billion to $650 billion in the next five years.
- September 26: Alchemy Pay (ACH) acquired blockchain data platform Satsuma.
- September 26: The SEC postponed its review of ARK Invest and Global X’s spot Bitcoin ETF application.
- September 27: The SEC accepted Franklin Templeton’s spot Bitcoin ETF application for review.
- September 27: The SEC postponed its decision on spot Ethereum ETF applications from ARK Invest and VanEck.
- September 28: Aptos Labs (APT) partnered with film studio Universal Pictures.
- September 28: VanEck and Valkyrie announced plans to launch Ethereum Futures ETFs.
- September 28: The SEC postponed its decision on spot Bitcoin ETF applications from BlackRock, Valkyrie, Invesco, and Bitwise.
- September 29: The SEC postponed its decision on spot Bitcoin ETF applications from VanEck, WisdomTree, and Fidelity.
- September 29: Invesco & Galaxy applied for a spot Ethereum ETF.
Key Developments to Watch in the Coming Week
Last week was packed with significant developments in the crypto world, and now it’s time to focus on important events in the upcoming week. On Monday, the 9 Ethereum Futures ETFs will be launched simultaneously. This will be a first for ETFs of this type.
On the same day, investors will be watching the speeches of Federal Reserve Chairman Jerome Powell. The crypto world, which will start October with a bang, may experience intense volatility in the first week of the month.
On Friday, October 6, unemployment rates and non-farm payroll data will be released in the United States. These data can lead to sudden market fluctuations.
Critical developments of next week! ⚡️#FED #Bitcoin #BTC $BTC #US #Türkiye #Ethereum #ETF pic.twitter.com/i7HANzEsSb
— COINOTAG NEWS (@coinotagen) October 1, 2023
Apart from these developments, no major news is expected in the crypto world. You can take a look at the firms that will launch Ethereum ETFs in the table below. A total of 9 ETFs will be launched, and these ETFs will be introduced to the market by 6 different firms. ProShares will launch the most ETFs. ProShares will launch 2 Bitcoin & Ethereum ETFs and 1 Ethereum ETF.
